All very understandable. It has always intrigued me how accountants deal
with 'late payments' i.e. bills paid after the close of the year. If I
understand the discussion, ongoing (accrual based) businesses are always
behind when it comes to an analysis of the state of play, unless all
invoices are paid within the accounting period? Is that why a cash based
spreadsheet is needed?
Isn't it possible in GNU to 'clear' an entry when the amount is paid?
Then it will appear in the reconciliation?
Just a question, I don't want to drag out the discussion.
On 01/06/2021 04:13, Howard M. Fried wrote:
On 5/31/21 9:08 PM, Alan Hopkins wrote:
Hello Howard
I agree with both Michaels - you need to understand the difference
between
accounting records & reports prepared on an accruals basis vs a cash
basis. You
should do some reading on basic accounting.
GNUCash used for business uses the accrual basis - (invoices are
registered in
accounts receivable, bills are registered in accounts payable).
Depending on
the number of invoices & bills involved, you may find that you need
to develop
your own cash report on a spreadsheet.
Some of these links may be of help to you:
https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html
<https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html>
https://www.bookstime.com/articles/accrual-to-cash-conversion
<https://www.bookstime.com/articles/accrual-to-cash-conversion>
https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/
<https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/>
GNUCash is excellent software (a big thank you to the developers!)
and you can
get more understanding of basic accounting and using the business
features by
referring to the Tutorial & Concepts guide:
https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide
<https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide>
I hope that is of some help to you
Cheers
Alan
Thank you Alan, and both Michaels. I was an educator for 34 years
before launching a second career as an Editor. Clearly, I need to
take up the role of student and learn some basic accounting methods.
I will certainly examine the materials that you have so kindly provided.
Regards,
Howard
On 1/6/21 12:42 am, Michael Hendry wrote:
On 31 May 2021, at 15:10, Howard M. Fried<cursor...@gmail.com> wrote:
I have several invoices that were issued in 2020 but paid in 2021.
These funds are not included in a P&L report for 2021, apparently
because the report is based on date of invoice issue, or have I
missed something.
Is it possible to get the 2020 Sales that were paid in 2021 into
the report for 2021? Simply extending the Report date range
backward is not a solution because many invoices that were issued
and paid in 2020 will be included. Or am I to include unrealized
assets for 2020 as profit, like the P&L report does (I have no
accounting, financial, or legal experience in such matters).
Thank you for considering,
Howard Fried
Not an accountant either, Howard, but I believe the approach varies
according to whether your books are kept on a cash or an accrual basis.
If cash, then reports are based on the date when you received
income, or the date you made a payment for expenses.
I don’t use the business features, but I think that you will be
working on an accrual basis, and have reports on Accounts Receivable
and Accounts Payable which carry over the end of the financial year.
Michael
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