[GNC] Operating Checking Account in Overdraft

[jeffrey black]

On 7/31/2018 2:14 AM, Murray Field wrote:
> Hi,
>
> We have a permanent overdraft with our bank and we operate our account fluctuating within   the overdraft limit approved.
>
> How should this be classified in gnucash?
>
> As an asset, a liability or something else? We could not find any reference to our situation in your guide which we have downloaded.
>
> We are potential new users.
>
> Kind Regards,
>
> Murray and Yvonne Field
>
>
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Technically, an overdraft would be considered a liability and should be 
recorded as such.  It is a short term loan and affects net worth.

My recommendation is to consult with and hire a LOCAL certified 
accountant just to set up your account structure, including tax related 
accounts.  The one time fee is small compared to the tax and/or legal 
fees you could possibly incur at a latter date.

I am not a certified accountant, just my 2 cents worth.

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Once you setup GnuCash, you will never consider using any other book 
keeping software.

-- 
--JEffrey Black M.B.A.