Gnucash usage for small banks and GL derivation rules

[Les]

Banking is a very complex operation (I was a banker for 15 years).  You
have interest accruals: interest on loans (loans are an asset and the
interest is income), accruals: interest on saving, time deposits, etc.
(saving, checking, etc are liabilities and the interest is an expense). 

Real time, multi-user processing of deposits and withdrawal. 

Accounting for government regulation compliance.

The list goes on and on. 

There are systems designed specifically for banking, and probably very
expensive and usually run on large computer systems with redundancy. 
There are also service bureaus that provide these functions for smaller
banks (probably the best solution for a new operation).

Les


On 06/21/2017 06:40 AM, Mike or Penny Novack wrote:
> On 6/20/2017 12:02 PM, Adrien Monteleone wrote:
>> First, I don’t think GnuCash is recommended for any case but personal
>> finances, clubs, and small businesses. A financial institution is on
>> an entirely different level. As David noted, I certainly wouldn’t
>> want to be a customer of such a bank. (now, if they liked GC so much
>> they decided to fully fund its development to get it to an acceptable
>> state for that case, I might change my mind)
> I am not sure I understand that answer. During my lifetime, banks,
> especially small banks were still using pen and ink on paper
> (computers became available for business purposes the first decade
> after WW II)
>
> Gnucash is perfectly able to mimic (automate) what old fashioned
> bookkeeping did. In many ways a bank is easier (more complete) than
> most businesses. The main lack in gnucash is no provision to receive
> "feeds" from other business systems (inventory, point of sales, etc.)
>
> Michael D Novack
>
> PS: If what you were meaning was just that gnucash did not come with a
> built up skeleton (sample of initial accounts) designed for a banking
> business, that is another matter entirely. But we can all come up with
> specialized uses for which "no set up skeleton provided".  It  doesn't
> make gnucash unsuitable just because you have to "roll your own" CoA.
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