[GNC] Cash Basis Accounting

[Michael or Penny Novack]

> Michael,
>
> I have a sole professional services consulting practice, B2B, with 
> clients.
> No product sales. My approach to cash accounting has worked for me for 
> more
> than two decades; it might not work as well for others.
>
> Regards,
>
> Rich 

I understood what you were doing worked for you. I was simply pointing 
out that for people with a business like yours (no "sales"), using the 
"adjusting transactions" method, accrual to cash and back again would 
not be onerous. It can, of course, be onerous for those whose business 
involves "sales" because then there are likely many accounts whose cash 
balance is required to fill in line items for tax reporting, etc. You 
would not have that problem.

I was also wanting to point out that gnucash can be used JUST to produce 
invoices and track which paid using a separate set of books (on the 
accrual basis) even though the main books are cash basis. In other 
words, no need for a different (non-gnucash) application to do that. 
There are other situations where (additional) sets of virtual books can 
be useful to provide information, especially when major parts of one's 
economic activity is virtual.

Michael D Novack