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....@gnucash.org> on behalf of Eric H. Bowen via gnucash-user <gnucash-user@gnucash.org> Sent: Saturday, May 20, 2023 3:21 PM To: gnucash-user@gnucash.org <gnucash-user@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. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
