Looking for recommendations! Please and thank you.
I am developing a bookkeeping app that will simply produce a ledger. I know it's bad to reinvent the wheel, but our use case requires it. We have non-CPAs and automated systems that will update the data.
It is designed that to have ONE FORM with both the credit and debit. The form will have lots of error checking to help with accuracy. There will be details to facilitate instructing layman on how to enter double bookkeeping entries. The result will be a ledger where each transaction listed. From there, the data can be synced with popular bookkeeping systems.
I am hoping that you can review the following and give feedback.
We're really trying to discover if there is a flaw in the design. I'm open to making this open source if anyone wants to use it. The goal is to provide very accurate transactions to provide a CPA. And, the credits and debits should balance by default.
FORM FIELDS:
Parent Transaction ID
The parent id is use to create, read, update, and delete transactions.
The form will use this ID to always pull the related debit and credit.
Child Transaction ID 1
The credit transaction ID is a child id that is related to the credit only.
Description
The description is the product or service sold. It it the information typically displayed in a bank account.
Credit
The credit is a float amount. An error will occur if it does not match the debit amount.
Type
The account type is cash, assets, equity, accounts receivable, liability, payable, etc
Nature
The nature of the transaction describes the transaction for laymen. It can be loan, payment, payoff, interest, fee, compensation, equity loan, payroll.
Account
The account in this case is who owns the account and where the account is located. Example: "Bob's Big Bank Checking Account". It includes digital payment services, etc.
Memo
The memo is the reference specified when wiring funds or the memo on a check.
Status
The status can be pending, completed, etc.
Created Date
The created date is the earliest date the transaction was recorded.
Modified date
The modified date is the latest date the transaction was updated.
Notes
The notes is simply a place for a few sentences related to the transaction.
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Debit Transaction ID
The debit transaction ID is a child id that is related to the debit only.
Description (ibid)
Debit (ibid) An error will occur
... keep reading on reddit ➡When you start a small business, one of your first financial decisions is whether you want to use single or double-entry bookkeeping . If finance is not your strength, you may not want to deal with the accounting aspects of your business.
However, companies must conduct detailed accounting of their financial transactions . This process is called bookkeeping . The survival of the business depends on the owner's ability to establish good accounting practices.
Single note
If your business is very small, simple to operate, and less active, then a single bookkeeping may only apply to you. This is actually similar to keeping your own checkbook. When you use a single note, you keep a record of transactions such as cash, tax deductible expenses and taxable income.
The feature of a single note is that there is only one record for each transaction, just like in your check register. In one column, the entries are recorded as positive or negative numbers. In a single note, you can actually keep two columns of ledger, one for income and one for expenditure. It is still considered a single entry because there is only one row per transaction.
This type of bookkeeping is not suitable for large and complex companies. It does not track accounts such as inventory, accounts payable and accounts receivable.
You can use a single note to calculate net income , but you cannot use it to develop a balance sheet and track asset and liability accounts. The transaction is a single entry , not a debit and credit to a group of books like double-entry bookkeeping.
Double-entry bookkeeping
Most businesses, even most small businesses, use double-entry bookkeeping to meet their accounting needs.
The two characteristics of double-entry bookkeeping are that each account has two columns, and each transaction is in two accounts. There are two records for every transaction-one debit note and the other debit note .
If the company wants to repay its creditors, then double-entry transactions are an example. The cash account will be deducted from the company's debt to creditors. This will be a debit. Then, the double entry reduces the amount the business now owes to the creditor’s account because it has received the credit for the business extension. This is credit.
If you want to track asset and liability accounts, you want to use double-entry bookkeeping instead of single-entry. The other advantages of [double-entry bookkeeping](https://www.gtaac
... keep reading on reddit ➡
How do I go about learning this? I can't seem to find any good resources or information on this topic.
I’m looking for an app that
- I can use on desktop and/or on my phone
- pulls transactions automatically
- supports double entry bookkeeping (like gnucash) that if payment was made from a bank to a credit card it is reflected
- easy to use reports (monthly, yearly, by category, by transaction, etc)
I’ve used Mint but it’s unstable because it keeps kicking my logins, gnucash is great although I have to manually enter the transaction and the report function is complicated. Should I look into accounting app?
I have been reading the book Bookkeeping for Dummies and I also did Accounting courses in my O'levels.
So I was wondering, at what threshold in terms of sales, turonver etc do you need to set up a full double entry bookkeeping system as taught in those books and courses?
I'm about to take my first assessment on Wednesday. Doing quite well practice assessments but one area that I seem to be consistently getting wrong is integrated accounting systems chapter
Theoretically I understand it, That variance is credit for favourable and debit adverse Also get the balance of credits and debits to answer some questions around balance carried over.
But Im always having to break it down to these rules to try and calculate an answer but I don't understand it like the other modules, does anyone know if good resources that breaks it down to understand it a bit better ?
I came across a couple of spirited debates on other sites on this issue and thought I'd bring it over here for discussion. I'm not an accountant, but I've read about the basics of double-entry accounting and am a Quicken user for my personal finances.
It's hard for me to see why Quicken would not fit the definition. Yes, it hides technical stuff from the end user, but it's pretty clearly double-entry bookkeeping behind the scenes. It has expense and income "categories" instead of accounts - but it makes the offsetting entry in the category and seems to be a semantic distinction. It doesn't handle equity accounts gracefully, but it's intended for households or sole proprietorships. It does calculate net worth though, and thus Net Worth = Assets -Liability = Equity.
What do you all say? Is there something I'm missing?
Double entry bookkeeping, debits and credits, was invented by Luca Pacioli in 15th century. It is the way you do your books in the US and Europe, and the whole world I'd guess. But is it really so? Is there any country out there that has a completely different way of accounting?
Specifically I’m curious if there’s any theories or explanations regarding why it was developed so late in Europe. It seems like such a straightforward way of documenting profits and losses, so were there factors that made it unnecessary until the Medici bank?
I am currently taking a basic accounting class in university and while I understand the "inner logic" of double-entry accounting I don't understand the "error detection"- argument that is often given for why it gradually replaced single-entry accounting.
According to most textbooks one of the main advantages of double-entry bookkeeping is that it prevents (some types) of accounting errors and makes it easier to detect such errors.
All explanations for that that I could find are based on the matching principle and/or the accounting identity: If debits and credits do not match and/or if assets are unequal to the sum of equity and liabilities an error has been made.
While that makes sense, I don't understand how this mechanism is different from simply writing every entry in a single-entry bookkeeping system down twice and then comparing the result: If the entries are not equal to each other, one of them must be incorrect.
There must be something about the process of recording a transaction in a double-entry system that accounts for the difference but I have no idea what is is.
(Sorry for my language, English is not my first language)
Like one that gives you a chart of accounts and then throws a stream of different events at you? With good UI and visual/auditory feedback?
If it doesn't exist, would you be interested in using one?
In double-entry bookkeeping, every entry into an account has an opposite entry into a different account.
Does this principal apply to Favored Adjustments? In other words, if I receive a "-4 Favored Adjustment" in a HL match, do people on the other team receive a "+4 Favored Adjustment"?
(And while we're on the subject, do all players on the same team receive the same Favored Adjustment? My assumption here is that favored adjustments are calculated based draft composition.)
Thanks
I am learning double entry bookkeeping for my business I want to start. I want to do it by hand instead of the computer. I know there is a journal and a ledger. What I don't understand is how many ledgers I need. Some places I see you only need one ledger and a journal, then another says you need 2 ledgers and 2 journals. For the life of me I can not find the answer. So can someone please help me! How many ledgers and journals do I need to keep my books? Please please help!!!😭
Thank you /r/accounting, you give great responses.
