Q re use of GnuCash for Startup Business

[Liz]

On Sat, 11 Jan 2014 17:19:20 -0500
"Anonymous User" <anonymoususer.cleveland at gmail.com> wrote:

> I've come to gnucash as I despise Quicken and as a result decided not
> to even try Quickbooks.
> 
>  
> 
> (I did search for an answer before asking here.)
> 
>  
> 
> At the beginning of the year, I decided to turn a hobby into a (very)
> small business. I make handmade soaps.
> 
>  
> 
> I work at a normal job, so this startup will be a very gradual
> process for me.  I plan to use "extra" cash as I have it, to fund the
> purchase of supplies to make soap until I have a sufficient inventory
> to offer it for sale.  I'm estimating this will take about two months.
> 
>  
> 
> Anyhow, how do I enter my initial purchases in gnucash for supplies
> that I've paid for out of my personal checking or credit card account?
> 
>  
> 
> I have no accounting or business background, but nor am I stupid, so
> if you can provide me a link or advice, I probably can take it from
> there without requiring too much hand holding.
> 
>  
> 
> I thank you for your time and consideration.
> 
>  
> 
> William
> 
>  

Two main options, and they depend on the tax rules of your country of
origin, and how big you think you may grow.

1. Make a second set of books. Make a loan account from your personal
accounts and loan money to your business.

2. Make some specific accounts for your business purchases and sales in
your personal accounts.

Where I live, (1) is preferable as the business needs separate tax
accounting.

Liz