Support Equity accounts (notably, Equity:Opening-Balances)

Peter Berger's Avatar

Peter Berger

22 May, 2020 11:18 PM

Coming from Gnucash, it's sort of weird to be using something that is sort of double-entry but has no notion of an Equity account. Even if it's not in the default account set, I really wish I could have an Equity:Opening-Balances account, which would let me avoid using the hidden "starting balance" preference, and just treat the first transaction in the ledger as just another journal entry.

  1. 1 Posted by dwg on 22 May, 2020 11:25 PM

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    I'm a fellow user.

    There is no reason you cannot create an account or a category (which are really a type of account) for this and draw against them for the opening balance, The Initial balance field is just a convenient approach for the average user.

    GNUCash is of course a full accounting program while Moneydance is really aimed at Personal Finance but with accounting rules determining how transactions work.

  2. 2 Posted by peterb on 23 May, 2020 07:46 PM

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    Categories are income or expense; the entire reason to not use them for this is that doing so torches your ability to answer the question "how much income or expense do i have for the period in question?"

    Using an asset account (and letting it become negative) is possibly better, but will torch your ability to answer the question "What's my net worth"?

    That's why equity accounts exist in accounting.

  3. 3 Posted by dwg on 23 May, 2020 09:12 PM

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    I would make the following observations

    1. A category can be excluded from a report so the values are not included

    2. An account can be marked as inactive, so while still usable the balance will not be shown and again such an account can be included or excluded from reports at will.

    The mot common equity account in accounting is owners equity in a business, which are shareholders funds in a public company and these values are shown in a balance sheet.

  4. 4 Posted by peterb on 24 May, 2020 12:18 AM

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    Sure, there are ways to hack around the lack of equity accounts. But since this was the 'suggestions', forum, I'm suggesting fixing the lack instead of asking for workarounds.

  5. System closed this discussion on 23 Aug, 2020 12:20 AM.

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