Gnucash usage for small banks and GL derivation rules

[Mike or Penny Novack]

On 6/20/2017 9:09 AM, Andrey Shalaurov wrote:
> Hi,
>
> I have two questions:
> 1. Can this software be used for a small business that is a bank /
> financial institution - all accounts have to be flipped from bank's point
> of view e.g. Loans are Assets, Deposits are Liabilities (can the software
> be re-configured as such)?
I think you misunderstand the issues.

NOTHING needs to be "flipped". When most people use gnucash, they are 
not a bank, so for them a "bank account" is an asset. But if you are a 
bank, the "bank accounts" of depositors are not "bank accounts" for you 
<< you are correct, they are liabilities for you >>

What I suggest is that you need to get a text covering "accounting for 
banks/financial institutions" which will show you WHAT you will be 
doing. Then you come to us to tell you HOW to implement that WHAT when 
using gnucash. You need to know what your books would look like (say you 
were keeping them the old fashioned way, pen and ink on accounting 
paper) and then we show you what parts of that gnucash will automate.

Michael D Novack

PS: To give you one example, where because I never looked at how a BANK 
keeps its books, I would have to look up how a bank handles ITS OWN 
checking account(s) << like it uses for payroll, paying the utility 
bills, etc. >>