beginning balance of income and expense accounts

[lnorden at mchsi.com]

Yes my accounting year started on jan 1.  So where I stand right now, is all assets, liabilities, income and expense have the correct balance as of 9-30.  But they all require an offset account.  The problem is I've already taken into consideration the offset account by using their balance as of 9-30.  For example, my wages were already offset into my Checking account, and that balance has been updated as of 9-30.  I tried ignoring the Opening Balance account net value just now, but it requires an offset account.

I so appreciate all of your ideas.  I think at this point, I'm going to need to start Jan 1 of either 2017 or 2018.  Doesn't look like there is an option to start mid-year.

-----Original Message-----
From: gnucash-user <gnucash-user-bounces+lnorden=mchsi.com at gnucash.org> On Behalf Of Dale Alspach
Sent: Saturday, March 24, 2018 5:34 PM
To: gnucash-user at gnucash.org
Subject: Re: beginning balance of income and expense accounts

In that case your first entry should be income total from the start of the accounting year to Sept. 30 and you should be doing the analogous thing for all accounts. ( I am assuming that your accounting year started on January 1 or some other date prior to Sept. 30.) By doing this you will be establishing the status of all accounts at the time you quit using Microsoft Money. I suggest ignoring the Opening Balance account net value. Instead concentrate on getting each account to have the correct balance as of Sept. 30, i.e., to agree with Microsoft Money (up to any restructuring of the accounts), before you begin entering post Sept. 30 transactions. I know nothing about Microsoft Money but I assume you can get an income-expense (profit-loss) report and a balance sheet as of Sept. 30. Running the same reports in gnucash should help you check your starting point.

Dale

On 03/24/2018 04:51 PM, lnorden at mchsi.com wrote:
> I wasn't starting at the beginning of the year.
> I stopped using Microsoft Money as of September, and have been fighting Quicken but recently realized it doesn't use a double entry system.  so I was hoping to start at 9-30 to be able to calculate net income for 2017.  I'd like to calculate 2017 net income if possible.    
>   
> When I set up my Income and Expense categories, it gave me the option to establish an opening balance.  But offset Equity.
> 
> -----Original Message-----
> From: gnucash-user 
> <gnucash-user-bounces+lnorden=mchsi.com at gnucash.org> On Behalf Of Dave 
> H
> Sent: Saturday, March 24, 2018 3:33 PM
> To: Adrien Monteleone <adrien.monteleone at gmail.com>
> Cc: gnucash-user at gnucash.org
> Subject: Re: beginning balance of income and expense accounts
> 
> Aha good question Adrien, mine also only has Asset and Liabilities in 
> the Opening Balances :-)
> 
> Cheers Dave H.
> 
> On 25 March 2018 at 06:29, Adrien Monteleone 
> <adrien.monteleone at gmail.com>
> wrote:
> 
>> How do you have an opening balance for income or expenses at the 
>> beginning of the year? You haven’t earned or spent anything yet.
>>
>> You should be starting off with opening balances for assets and 
>> liabilities. Then as you earn and spend, the net of those newer 
>> entries are virtually calculated as ‘retained earnings/losses’ unless 
>> or until you close the books with an official entry to equity. (which 
>> is neither necessary, or necessarily desirable in Gnucash)
>>
>> Income should be balanced with debits to an asset(where the money 
>> went to), not equity.
>> Expenses should be balanced with credits to an asset(where the money 
>> came from), not equity.
>>
>> Regards,
>> Adrien
>>
>>> On Mar 24, 2018, at 3:09 PM, Lori Norden <lnorden at mchsi.com> wrote:
>>>
>>> I am starting Gnucash in the beginning of the year.  As I’m entering 
>>> the
>> beginning balance for each income and expense account, a transfer is 
>> being made to my Equity Opening Balance account.
>>>
>>> For income beginning balance entries – credits income; debits Equity
>> Opening Balance
>>> For expense beginning balance entries – debits expense, credits 
>>> Equity
>> Opening Balance
>>>
>>> The problem is my Equity is reduced by the amount of net income I 
>>> made
>> as of the beginning date, but should be increased.
>>>
>>> Should I be offsetting the beginning balances for income and expense 
>>> to
>> something other than Equity Opening Balance?  That’s what I thought 
>> the instructions indicated I should do.
>>>
>>> Thanks for your help
>>>
>>> Sent from Mail for Windows 10
>>>
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