diff --git a/npo-ledger-cli-tutorial.md b/npo-ledger-cli-tutorial.md new file mode 100644 index 0000000000000000000000000000000000000000..66eae73fd37edc59681cd3ff7870107e43da537b --- /dev/null +++ b/npo-ledger-cli-tutorial.md @@ -0,0 +1,87 @@ +Non-Profit Accounting With Ledger CLI, A Tutorial +================================================= + +Non-profit organizations (NPOs), particularly 501(c)(3) charities in the USA, +have their own specific accounting needs. These often differ from for-profit +accounting needs. For example, for-profit-oriented systems often make +problematic assumptions about the workflow of accounting tasks (often because +NPOs rely primarily on donations, rather than fee-for-service or +widget-selling income). Also, non-profit income is categorized differently +than for-profit income, and the reporting requirements vary wildly from their +for-profit equivalents. + +This project is designed to provide some basic templates, tutorials, workflow +documentation and scripts to handle accounting for an NPO. The primary +example is a +[direct project (aka Model A) fiscal sponsor NPO](http://en.wikipedia.org/wiki/Fiscal_sponsorship#Models_of_fiscal_sponsorship). + +This tutorial was written primarily based on +[Software Freedom Conservancy](http://sfconservancy.org/)'s use of Ledger CLI +from 2008-10-22 to present for its own accounting needs. While Conservancy +has done well using this system, and believes that its account system meets +Generally accepted accounting principles (GAAP), this document **does not** +constitute advice from a CPA nor legal advice for a non-profit that seeks to +comply with relevant state and/or federal accounting requirements for USA +non-profits. The authors make no representations nor warranties regarding +this information and this information is provided for discussion purposes +only. Readers of these tutorial and templates are urged to seek professional +advice from a CPA and/or tax legal counsel in constructing an accounting +system appropriate for your organization. + +Furthermore, given the authors' limited knowledge of accounting requirements +outside the USA, the suggestions herein probably are not particularly useful +at all for organizations outside the USA. + +Configuration of Chart of Accounts +---------------------------------- + +The first thing any accountant will ask to see if your so-called "chart of +accounts". The first time I heard this phrase, I thought it was something +complicated. Fact of the matter is, it's really just a list of all the +accounts that you use. Accountants also use "account codes", which, as near +as I can tell, are of primary interest because they get better sorting. +Ledger CLI doesn't really support account codes, so I've ignored them. + +The real place that Ledger CLI stores your chart of accounts is if you use +the `account` directive along with the `--pedantic` CLI option. This will +ensure that only accounts you declared explicitly will used. + +### Asset Accounts + +Our recommendation for asset accounts FIXME. + + +### Reporting The Chart of Accounts + +The +[`general-ledger-report.plx` script in the `non-profit-audit-reports` Ledger CLI contrib directory](https://github.com/ledger/ledger/blob/next/contrib/non-profit-audit-reports/general-ledger-report.plx) +will generate a file called `chart-of-accounts.csv`, which is the chart of accounts. + +Copyright and License of This File +---------------------------------- + +This specific document, the README.md file for npo-ledger-cli, is copyrighted: + Copyright © 2013, Bradley M. Kuhn + +This document's license gives you freedom; you can copy, modify, convey, +propagate, and/or redistribute this software under the terms of either: + + * The GNU General Public License as published by the Free Software + Foundation, Inc.; either version 3 of the License, or (at your option) + any later version (aka GPLv3-or-later). + + * *or* the Creative Commons Attribution-ShareAlike 3.0 United States + license, as published by Creative Commons, Inc. (aka CC-By-SA-USA-3.0) + +In addition, when you convey, distribute, and/or propagate this document +and/or modified versions thereof, you may also preserve this notice so that +recipients of such distributions will also have both licensing options +described above. + +A copy of GPLv3 and CC-By-SA-3.0-USA can be found in the same repository as +this file under the filenames GPLv3.txt and CC-By-SA-3.0-USA.txt. If this +document has been separated from the repository, a +[copy of GPL can be found on FSF's website](http://www.gnu.org/licenses/gpl.txt) +and a +[copy of CC-By-SA-USA-3.0 can be found on Creative Commons' website](http://creativecommons.org/licenses/by-sa/3.0/us/legalcode). +