GnuCash and Budgeting

Dennis 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
as well.)

(Assets=Liabilities + equity)

Accounts:
 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

Deposit paycheck
  bank+=$1000  (equity+=$1000)
Budget 50 for gas
 gas += $50 (monthly gas bills += $50)
 bank -= $50 (equity -= $50)

buy some gas
 gas -= $25 ( gas bills -= $25)

Balance:
 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.

-Dennis

>>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.
>
>Jesse
>/*
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>  
>




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