[GNC] Adding A Business Activity (and integrating with old)

[Murugan Muruganandam]

Eric

i have a similar setup.  My accountant explained that apart from keeping books seperate i have to make sure that the income , expenses are clearly segregated.  Obviously it is difficult when starting a new business, so i had multiple cross expenses.  To streamline the process, i created two seperate books


  1.  created a asset account in my personal book (named it as  business account)
  2.  register all business expenses into this asset account (the business owes this to me)
  3.  Created a liability account in the new business book and register the expense

an example below

Expense :  Shipment expenses paid using my personal credit card

Personal Book:

Liability: Credit Card: Credit $25
Asset: Business Account: Debit $25



Business Book:


Liability: Loan: Business Account: Cr $25

Expenses: Office: Shipment: Dr $25



on a specific period , i consolidate the business account amount and convert into a loan to business account. (due to local taxes i have to create a 0 interest loan through an affidavit and pay a small tax)







Saludos Cordiales


Murugan

________________________________
From: gnucash-user <gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of Eric H. Bowen via gnucash-user <gnucash-user at gnucash.org>
Sent: Saturday, May 20, 2023 3:21 PM
To: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Subject: [GNC] Adding A Business Activity (and integrating with old)

I've been using GnuCash for personal expenses and for a home-based hobby
business for the past several years now. I'm about to add another
business activity which will be more serious (I'm self-publishing a
book). I'm planning to open a separate business banking account for this
activity and I want to use an entirely separate GnuCash book to keep
track of income and expenses. Note: This will be a sole proprietorship
(at least for now) as is my current hobby business.

My question is: How do I integrate this with my current GnuCash
register? It will be more than a year before I generate any
(significant) income, even if things go well, so there's going to be a
lot of crossover and funds transferred from my personal accounts, both
cash and credit. There are also other items, such as telephone and
Internet service, which can/should be expensed across both activities.
I'm also wanting to track investment and net equity in this activity in
the event that I eventually sell out to an established publisher or else
formally incorporate the business.

I can/will speak with the accountant that I'm using for his
recommendations, but he's completely unfamiliar with GnuCash; when I
mentioned it his reaction was, "What...?" So I want to see how this can
and should be done under the GnuCash interface.


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