[GNC] Tracking UnPaid Bills

[Michael or Penny Novack]

Yes, you COULD switch to accrual basis accounting. In which case you 
would enter the bill into "payables" (and the example expense 
"electricity). But doing that in personal accounting where MOST expenses 
not billed might be excessive << you are in effect naturally "cash 
basis" for most of your expenses >>

An alternative which you might prefer is to stay on cash basis but enter 
a transaction when bill is received (or possibly date DUE if not "due on 
receipt") against a liability account. In other words, you would debit  
"electricity expense" and credit "electric account" (under liabilities). 
When you make a bill payment, debit "electric account: and credit "cash" 
(your bank account, probably. The balance of "electric account" would be 
the amount you owe (it's a liability)

Michael D Novack