Cash Basis Report Options

[Wm]

Fri, 9 Jan 2015 16:02:45 
<CAAyPE3AMDdOs+2BKPTfpm4-H1DogEskbvAyoBqeFr3=MtEdmPw at mail.gmail.com> 
Buddha Buck <blaisepascal at gmail.com>

>On Fri Jan 09 2015 at 10:32:39 AM Mike or Penny Novack <
>stepbystepfarm at mtdata.com> wrote:
>
>>
>>
>> >> Sure -- provided you don't use any of the invoicing features.
>> >> If you invoice then by definition it's an accrual.
>> >
>> > Unless it is a pro-forma invoice in which case it isn't and you
>> > shouldn't be using gnc to produce it, see previous discussions.
>> >
>> The problem with the previous opinion is:
>> a) Unlikely to have other software capable of of producing these
>> pro-forma invoices.

A word processor or e-mail client is fine, who doesn't have one of those 
these days?

>> b) Still going to have to do data entry to indicate which were paid if
>> you had that software.

Not if you can import from the bank.

>> And produce the reports your board will want to
>> see (do you think the board isn't going to ask the treasurer "how many
>> members haven't renewed yet and who are they?", What percentage of our
>> expected dues have been received?", etc.)

Spreadsheet seems obvious.

>> c) The membership  is going to expect unified statements, not separate
>> invoices for real obligations, pledges, and pro-forma ones like
>> memberships.

Stop right there.  Where I am a statement is an account of monies owed. 
If some of the monies *aren't* owed then they shouldn't be on the 
statement of account should they?  Add them as a reminder, request, etc 
by all means but you really shouldn't be telling people they owe money 
they don't and you shouldn't be recording in your books debts that 
aren't due.

>Even without getting into the issue of how to account for the various
>contributions to a non-profit, the general point can be made that there are
>several types of business forms and accounting procedures that GnuCash
>doesn't necessarily directly handle.

Correct, they are mainly those that don't create a financial event.

>For instance, it is not unheard of for an organization to have a procedure
>for large purchases which generates and correlates the following five
>documents : Requisition Request, Purchase Order, Invoice/Bill, Packing
>Slip. Payment/check
>
>Only two of those five documents are generated and handled by GnuCash
>(Invoice/Bill and Check), If you want to track the others, you need to use
>an external system.

I think part of the discussion may be about that.  I don't have a 
problem with external systems, other people might.

>The same goes for quotes, pro forma invoices, or any other business
>document which GnuCash doesn't handle.

"doesn't" rather than "can't" being the operative word.

>It is likely that the few of us who are using gnucash to keep the books
>> for non-profits shouldn't involve the whole list as we argue how best to
>> do things. Or if there are enough of us doing this perhaps a sub list,
>> even if informal like something identifying in the subject line so
>> others not interested in the issues for non-profits can filter those
>> posts out.

I'm not opposed to that but I'm of the opinion the accounting shouldn't 
change.  Reporting, maybe.

>It's also a case that one-size-does-not-fit-all, even within non-profit
>accounting.

Definitely

>You said you keep your non-profit books on a cash basis. My
>understanding of New York State law is that I must keep my non-profit books
>on an accrual basis. What works for you in a cash sense will not work for
>me.

Here in England (the law about this in Scotland is different for e.g. as 
it can be in US states) size may come into it, a large charity / 
non-profit with discreet income and expenditure may be able to report on 
a cash basis and a smaller one with a myriad of transactions might be 
better off reporting on an accrual basis.

Know your locale would seem to be the motto de jour.

-- 
Wm...