Splitting Business Accounts from Personal (after-the-fact)

Paul's Avatar

Paul

29 Jul, 2009 04:41 PM

Hello,

I am looking for helpful suggestions on the best way that I can split my business accounts and information in Moneydance from my personal ones. Currently I have a small business that has its own liability accounts, credit card, categories, and bank account. I have similar accounts and categories for my personal finances. While I do just fine at keeping my actual finances separate, when I started to use Moneydance (which I thoroughly enjoy as an accounting software, btw) I created only one .md file and simply created separate categories and the like to track business vs. personal financial information.

What I am really after is whether this is the best way to do it or if I should create a second .md specifically for business finances or is there some way to best separate the two using one .md file. One big issue that I have right now is that it is difficult to get a big picture view of either the business of personal data quickly since on the home page everything is co-mingled.

What would be really nice, and maybe worth suggesting, is to be able to fully customize the home page in a way that the business net worth as well and a separate net worth for personal could be shown. Additionally to have on the home page a quick overview of each (personal vs. business) depending on which accounts are assigned to "belong" to each would be really nice. I could see this being especially useful for others and people that may have separate personal finances or multiple businesses.

Does anyone out there have a similar problem or do you simply have two or more .md files that you maintain?

All suggestions and comments would be appreciated.

Thank you,
Paul

  1. 1 Posted by Ben Spencer on 06 Aug, 2009 04:03 PM

    Ben Spencer's Avatar

    Hi Paul

    I was hoping that someone in the Moneydance community wh uses Moneydacne for persona and business accounts would have given you a response. And since nobosy has I' give you my thoughts on the subject.

    I would definitely recommend using two independent .md files. I have two reasons for this.

    Firstly the net worth calculation is based on all assets and liabilities in the md file. While not essential, many find it useful to see their personal networth independently of the business worth,

    Secondly - and I think this one is more important - Transfers between business accounts and personal accounts must be completely eliminated. For example if you pay your self a wage. If this is a business expense it must be recorded as a business expense. And then also be recorded as a personal income. I had a user who was just transferring money from the business bank account to her personal bank account (to pay herself) without using the expense and income categories. Using an independent file would prevent such mistakes from happening.

    Probably the easiest way to divide the file would be to make 2 copies of the md file. Open one and delete all the business accounts and then do the same with the other and delete all the personal accounts. If you don't have any transfers between business and personal accounts this should be fine.

    Sincerely

    Ben Spencer

  2. 2 Posted by Paul on 06 Aug, 2009 06:35 PM

    Paul's Avatar

    Thank you for the information. Looks like I will be taken your suggestion and duplicating my .md file in order to delete the business transaction from one and the personal transactions from the other.

    Paul

  3. Raimund Buchholz closed this discussion on 30 Jan, 2010 12:11 PM.

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