[GNC] How to best set up account structure for multiple Tax IDs?

Liz edodd at billiau.net
Mon Sep 3 18:43:33 EDT 2018


On Mon, 3 Sep 2018 09:42:56 -0400
Jens Dill <jens at wellhall.org> wrote:

> So I have at least 5 pots of money: the two trusts, the two
> businesses and my personal funds (cash, bank accounts, and IRAs).
> Each has its own liabilities, assets, income, expenses, and equity. 

Currently I am "only" managing 4 entities. I have four files, one for
each set of books and each is allowed a certain space on my monitor so
I can have all four open at once.

For many years I only used the one credit card, but now have a (major
company) debit card on the business account, so the number of entries
where I paid from personal funds and eventually paid it back
"Liability:Internal Loan" is now minimal, and reflects cash
transactions usually.

I don't worry about the business features for this use of Gnucash. As I
am in charge of the file, I can just check the balance of the liability
account and decide whether to pay myself that money or not.

However, each entity has at least one bank account - as I have been
doing this for a long time, I have accumulated some assets.
The concept that you are using a single bank account for your personal
and business at present pushes you into having to combine the the data
so you can reconcile the account.

I'm not in your jurisdiction, but I strongly advice untangling your
business and personal bank accounts and financial recording. Mike
Novack will give you many good reasons for this, including when you
sell the business not exposing your personal accounts to scrutiny when
displaying the profitability of your enterprise.

Liz


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