Fw: Canadian use

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Fw: Canadian use

Dominic Grosleau

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-----Original Message-----
From: [hidden email]
Date: Tue, 3 Sep 2013 05:24:28
To: <[hidden email]>
Reply-To: [hidden email]
Subject: Canadian use

Good day,

My wife recently opened up a home daycare and we would like to have a few ideas on how to set up a canadian-type (ontario) chart of account in GC 2.4.11 (linuxmint) to reflect this so we can keep track of the business.

We also sell a few homemade goods and delicacies that we would like to keep track of.


Dom
Petawawa
Ontari0
 
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Re: Fw: Canadian use

Mike or Penny Novack

>Good day,
>
>My wife recently opened up a home daycare and we would like to have a few ideas on how to set up a canadian-type (ontario) chart of account in GC 2.4.11 (linuxmint) to reflect this so we can keep track of the business.
>
>We also sell a few homemade goods and delicacies that we would like to keep track of.
>
>
>Dom
>Petawawa
>Ontari0
>
>  
>
I'm going to ask you a question (request to clarify yours). Are you
asking ..........

1) "How would I set up the double entry books for this no matter whether
I was keeping the books using gnucash or any other accounting package or
even the old fashioned way pen and ink on accounting paper (or the
slightly more modern way using spreadsheet pages ruled the way
traditional accounting paper would be)?"

or

2) "I know how to do it (say pen and ink on accounting paper) but how do
I set that up using gnucash?" Especially with regard to any differences
caused by the OS we are using?

and

3) Do you understand the difference between the two? In terms of the
sort of help you are asking for. If you have any experience keeping
books the old fashioned way you will appreciate how gnucash (or any
other accounting package) automates the most error prone parts of the
traditional* process. But none of these packages eliminates having to
know the basics of double entry bookkeeping. Just like a nail gun can
speed up the job and save on wrist fatigue compared to pounding them in
by hand but of little use if you haven't a clue where the nails should go.

Michael D Novack

* In the traditional process you first entered the transaction into the
journal and then posted the entry into each of the ledger accounts
affected by the transaction. Process very subject to transcription
errors. With a software package you enter the transaction for any one of
the ledger accounts affected which places the proper entry into each of
the other ledger accounts affected and constructs an implied journal
entry, never making a transcription error and giving you immediate
feedback if you entered the transaction out of balance. BUT it can't
help you with "which accounts should this transaction be affecting?" if
you don't know that.
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Re: Canadian use

R. Victor Klassen
The default chart of accounts for business is a good place to start.

I'm managing the books for a diversified vegetable farm (in Canada), and started with that.

You will want to get an HST number, if you don't already have one, and then one way of handling HST (the way I've chosen) is to put an account for HST under liabilities, and then two accounts underneath that for HST collected (and therefore payable) and HST paid (and therefore subject to the Input Tax Credit).

I would suggest having sub accounts under expenses for each of the two businesses, and then sub-accounts beneath them for the specific expenses related to the two businesses : supplies, insurance (as applicable), any tools/equipment (some of which might be capital, and therefore go under assets).  

Take a look at the tax forms you'll be filing when the time comes (probably next June).  Think in terms of having an account for each line item on the tax form, and then sub-accounts for them to whatever extent it makes things easier for you to keep on top of things.  

Hope that helps.


On 2013-09-03, at 10:19 AM, Mike or Penny Novack wrote:

>
>> Good day,
>>
>> My wife recently opened up a home daycare and we would like to have a few ideas on how to set up a canadian-type (ontario) chart of account in GC 2.4.11 (linuxmint) to reflect this so we can keep track of the business.
>>
>> We also sell a few homemade goods and delicacies that we would like to keep track of.
>>
>>
>> Dom
>> Petawawa
>> Ontari0
>>
> I'm going to ask you a question (request to clarify yours). Are you asking ..........
>
> 1) "How would I set up the double entry books for this no matter whether I was keeping the books using gnucash or any other accounting package or even the old fashioned way pen and ink on accounting paper (or the slightly more modern way using spreadsheet pages ruled the way traditional accounting paper would be)?"
>
> or
>
> 2) "I know how to do it (say pen and ink on accounting paper) but how do I set that up using gnucash?" Especially with regard to any differences caused by the OS we are using?
>
> and
>
> 3) Do you understand the difference between the two? In terms of the sort of help you are asking for. If you have any experience keeping books the old fashioned way you will appreciate how gnucash (or any other accounting package) automates the most error prone parts of the traditional* process. But none of these packages eliminates having to know the basics of double entry bookkeeping. Just like a nail gun can speed up the job and save on wrist fatigue compared to pounding them in by hand but of little use if you haven't a clue where the nails should go.
>
> Michael D Novack
>
> * In the traditional process you first entered the transaction into the journal and then posted the entry into each of the ledger accounts affected by the transaction. Process very subject to transcription errors. With a software package you enter the transaction for any one of the ledger accounts affected which places the proper entry into each of the other ledger accounts affected and constructs an implied journal entry, never making a transcription error and giving you immediate feedback if you entered the transaction out of balance. BUT it can't help you with "which accounts should this transaction be affecting?" if you don't know that.
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> 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.


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Re: Canadian use

mrskhris
I'd suggest starting with a good book."Bookkeepers' Bootcamp: Get a
Grip on Accounting Basics (Numbers 101 for Small Business)" helped me
a lot.

On Tue, Sep 3, 2013 at 5:21 PM, R. Victor Klassen <[hidden email]> wrote:
> The default chart of accounts for business is a good place to start.
>
> I'm managing the books for a diversified vegetable farm (in Canada), and started with that.
>
> You will want to get an HST number, if you don't already have one, and then one way of handling HST (the way I've chosen) is to put an account for HST under liabilities, and then two accounts underneath that for HST collected (and therefore payable) and HST paid (and therefore subject to the Input Tax Credit).
>

Elena Khrissanova

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