How to close a financial year & how to keep 'earmarked' funds

[Derek Atkins]

On Thu, May 25, 2017 11:33 am, Anita Graves wrote:
> Maf thanks so much!!!  Helpful certainly.  But I don’t understand IIRC,
> YMMV and HTH.

If I Recall Corretly
Your Mileage May Vary
Happy To Help

> How is it possible to keep the same file moving from one year to the next
> in the same file?

Just keep entering data.

>   How can I turn over the accounts for one year only to
> an accountant?

This is certainly harder if your data file contains multiple years of
data.  If you want to supply a gnucash database file then you would need
to supply everything to your accountant.  Otherwise, you could generally
just submit an Income Statement, Balance Sheet, and a full transaction
report for the period.

>   How can you compare side by side if everything is in the
> same file?

Generate two reports, one for e.g. 1/1/2015-1/1/2016, and one for
1/1/2016-1/1/2017 and compare.

-derek

>
>> On 25 May 2017, at 6:28 PM, Maf. King <maf at chilwell.net> wrote:
>>
>> On Thursday, 25 May 2017 16:05:27 BST Anita Graves wrote:
>>
>>>
>>> I would very much like to know how these funds should be entered in the
>>> accounts.  You take money from the asset accounts (checking or cash)
>>> and
>>> put it in special ‘earmarked’ expense subaccounts, then draw the funds
>>> toward zero as they are spent, and the balances go forward from year to
>>> year, if that is the case.
>>>
>>
>> Hi Anita,
>>
>> I would record the earmarked contributions carried forward as Asset
>> accounts,
>> not expense accounts.
>>
>> IIRC, you have one bank account, but you have "imaginary" bank accounts
>> to
>> restrict the funds within that bank account
>>
>> I would have
>> Assets:Bank:Unrestricted
>> Assets:Bank:Restricted:National
>> Assets:Bank:Restricted:BuildingRepair
>> and so on.
>>
>> In the chart of accoutns, you will be able to see the overall bank
>> balance,
>> and each register will show you how much is earmarked for repairs etc.
>>
>> When you reconcile, check the box to "include sub-acccounts"
>>
>> Donations are Income:Donation:MoreBreakdownIfYouNeedIt ->
>> Asset:Bank:Wherever
>>
>> The only glitch is if you have a donor giving to 2 restricted funds at
>> once -
>> it won't be clear in the reconcile dialogue box; it will show as 2
>> transactions that reconcile at the same time. (ie you tick one and the
>> 2nd is
>> ticked automatically)
>>
>> As you spend the restrictions, then you transfer from Asset:Bank:<x> to
>> Expenses:<y>
>>
>> And I personally would not use new files year to year.  the reports can
>> handle
>> the periods just fine - and it can be useful to compare 2 periods
>> side-by-side;
>> you can't do that within GC if the data is split into different files.
>>
>> As ever, subject to local laws, customs & practices, which is beyond my
>> ken.
>> YMMV etc.
>>
>> HTH,
>> Maf.
>>
>>
>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.


-- 
       Derek Atkins                 617-623-3745
       derek at ihtfp.com             www.ihtfp.com
       Computer and Internet Security Consultant