GnuCash and Budgeting
devel at muhlesteins.com
Tue Sep 20 09:11:47 MDT 2005
JStay at mediageneral.com wrote:
>>Speaking of gnuCash (and doing my part to swing the thread
>>back on-topic), does anyone have any suggestions for good
>>Linux software for budgeting?
>>GnuCash is great, but (at least as far as I know) it doesn't
>>have any budgeting capabilities.
GnuCash is a double entry accounting system. If you want to model a
budget with that type of system, you simply create an account. Example
(in double entry when you add to one side you have to add to the other
(Assets=Liabilities + equity)
Banks=Account1(Real cash account) Asset
Gas=Account2 (Virtual account that actually is just in the bank) Asset
Gas bills Account3 (account that records money you actually spend on
gas ) liability
Budget 50 for gas
gas += $50 (monthly gas bills += $50)
bank -= $50 (equity -= $50)
buy some gas
gas -= $25 ( gas bills -= $25)
Bank: $975 (equity $975)
Gas: $25 (gas bills $25)
Net worth = Equity (assets-liability)
$950 (Assuming no other bills :D )
Been a while since I took accounting, but if I remember correctly, that
is the way it's done. Quickbooks at least also uses double entry.
Quicken and M$ money simplify the process becuase most people never took
an accounting class.
>>All I'm looking for is the ability to have several
>>categories, and when I get a paycheck, put money in the
>>categories, and when I spend money, take it out of one of the
>>categories. Any success stories?
>> ~ Ross
>Surprisingly, I don't even know many Windows apps that do that. It
>would seem like a common need (I do my budgeting all in spreadsheets at
>the moment, even though I use Quicken on the Mac), but no one seems to
>grasp that people budget that way for some reason.
>PLUG: http://plug.org, #utah on irc.freenode.net
>Don't fear the penguin.
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