[GNC] Standard chart of accounts?

[Michael or Penny Novack]

On 10/3/2020 1:09 PM, doncram wrote:
> Hi Ken Brown, I think that you need what you asked for, a good Chart of
> Accounts example, which you will implement into a new GnuCash entity.  How
> about the following Chart of Accounts, designed by me just now for a single
> person in the United States with some regular salary income plus some
> income from a part-time home business that is a sole proprietorship, so the
> person just files regular individual taxes at the end of the year, but with
> a schedule reporting their business income.

That's a good example. Especially for cases (quite common) where that 
business would NOT likely be separable. This is the easier way, 
especially if the business does not have separate bank account, credit 
card, etc.

BUT -- if the business activity could possibly be separated, say it 
could be sold, then you might want to consider the alternative where the 
business has its own set of books. That would make it easier to "show 
the books" (of just this business) without disclosing your personal 
finances.

Another situation where might be a good alternative is where you had 
more that one of these enterprises. There is a trade off between the 
complexities of multiple sets of books (especially when sharing bank 
accounts, etc.) and the ease of producing reports making clear how each 
is doing. The tax code can come into play here, as there are provisions 
pertaining to "type of business". Another situation where separate might 
be easier is if the business activity is temporary or on again off again.

Michael D Novack