[GNC] Consolidation of family member accounts

[Mark at Lorimark]

I'm not a CPA.  Just someone that uses and loves GnuCash, so... grains 
of salt needed here...

Those are really separate "accounting systems" are they not?  Would not 
each person maintain their own set of books?

If so, then when you transfer funds to your son, you ~could~ expense 
that, and to you it shows as an 'expense' or 'gift', and you have to 
account for that.  If you're giving someone money, don't you have to 
account for and report on that?  That's 'one side' of the transactional 
relationship (a double-post in YOUR account system showing a transfer).

Then, in your sons 'accounting system' he would show an double-posted 
'income' and 'asset', where he would receive income, and it would land 
as an asset.

Your expense and liability (to the tax man) is covered in your entries, 
and your sons 'income and subsequent expenses' are also tracked 
accordingly and properly in HIS accounting system.

Same with your wife.

Then, at tax time, everyone runs their 'books' to see all their incomes 
and expenses...

Does it make sense to break it up this way, to at least understand the 
'flow of monies' between all these individuals?  Because, if so, I think 
it would be possible to 'combine but separate' the 'Son' and 'Wife' 
systems in to a single (hierarchical) account file, and then get your 
taxes report by separating those accounts accordingly...

~mark petryk
~w:http://www.lorimarksolutions.com
~h:KG5OBY
~q:might as well... it's not getting any cheaper

On 8/13/23 12:04, Paras Desai wrote:
> Hello sirs,
> 
> 1. I am adopting GNC for my family members (me, wife and son)
> 2. There are lots of transfer takes place between family members. For example, I transfer an amount to wife account , for her expense or investment. Same for son.
> 3. At present I can adopt two approach for such transfer
> Either I can show transferred amount as gift expense or create account receivable in name of family member.
> 4. Neither is a good practice, as at family level, it will erroneously show duplicate expenses (mine as gift to wife and, wife's actual expenses with gifted fund)
> 
> So my question is
> 
> Is there a way in GNC to consolidate family members account to arrive at net worth of entire family?
> 
> When we do consolidation of accounts, we eliminate inter transaction between members (as we do between a parent and subsidiary company in business scenario)
> 
> I will be happy to explore the way, if there is any way I can achieve this in GNC
> 
> Thank you
> 
> Paras
> 
> 
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