By now, you know that GnuCash can do business accounting, however, you would like to know how far it can go. For example, you would like to know what type of accounting GnuCash is most suitable for and what kind of accounting it cannot handle.
You can use GnuCash for your personal as well as business accounting in the following different ways:
- Work on only your business accounts.
- Work on only your personal accounts.
- Combine your personal accounts and business accounts into one single account. For example, if you have a simple rental type of business, you can keep your rental income and expenses in separate accounts within your personal accounts.
- Maintain your personal accounts as well as your business accounts in separate files. This is because GnuCash saves one account with all of the related transactions in one file. You can open your personal accounts file, enter transactions, and save it. Then you can open your business accounts file, enter transactions...and so on.
Note
This is a description of the capabilities of the software. You should check with your accountant and tax consultant regarding the best course of action for your specific financial and tax situation.
However, please note that this book is focused entirely on business accounting. Personal accounting is not within the scope of this book.
GnuCash is a single user software. Oh, you and your business partner both need access? Your associate will be entering transactions and you must be able to view the reports? You want to know whether there is a way for more than one person to access GnuCash? Yes, there is. As long as you are willing to live with the limitation that only one person can use it at a time.
Here is how two people can share a single GnuCash accounts file. Look for a common folder that both users have access to. This can be a folder on one of the users' PC for which the other user is provided shared access. Or, as shown in the diagram below, it can be a folder on a network file server that both users have access to.
When User A accesses the file, GnuCash will lock that file. If User B tries to open this same file, GnuCash will pop a warning as shown in the following screenshot:
On seeing this message, User B should quit. If User B goes ahead and chooses to Open Anyway, then there is risk of data corruption and data loss. However, this message can also appear if the last time you used GnuCash it closed abnormally. This abnormal closing can occur due to a number of reasons including power failure, application, operating system crash, or other such problems. If that is the case, you must select Open Anyway. In short, when you see this message:
- If you are the only person using it, select Open Anyway.
- If you are sharing it with others, check whether anyone else is using it first.