Changeset - 38c378629e8c
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Bradley Kuhn (bkuhn) - 10 years ago 2013-04-21 19:12:16
Finished chart of accounts section.
1 file changed with 53 insertions and 1 deletions:
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@@ -48,8 +48,48 @@ ensure that only accounts you declared explicitly will used.

### Asset Accounts

Our recommendation for asset accounts FIXME.
Asset accounts represent anything that's owned.  Typically, these are
primarily your cash accounts, or anything that's completely liquid.

Many accounting tutorial materials will note that Loans, accounts receivable
and other receivables are assets as well.  Most accountants will
say that they are, but with regard to accounts called "Assets", this system
uses the account hierarchy `Assets:` only for tangible, liquid,
cash and/or cash-equivalent assets.  You'll find that account hierarchy
commonly in the examples herein.

### Liabilities Accounts

Similar to assets, most accountants will point out that any amount owed to
someone else is a liability, and that is of course accurate.  Like with the
`Assets:` hierarchy, this system uses `Liabilities:` hierarchy only to refer
to formalized accounts, such as credit cards, where a monthly statement is
sent and have an ongoing liability relationship with the organization.

### Accrued Accounts

For items that are receivable or payable, this system uses `Accrued:`
hierarchy.  Under this top-level account, you'll find accounts payable,
accounts receivable, loans payable and loans receivable.

### Expense Accounts

These accounts contain any expense of the organization, and all begin with

### Income Accounts

These accounts contain any income of the organization, and all begin with

### Unearned Income Accounts

`Unearned Income:` accounts are used to refer to revenue that is currently
received for services which have not yet been delivered.  The most typical
and common place an NPO encounters this type of income is for conference
registrations.  Since conference registrations arrive in advance of the
conference, it is not proper under accrual accounting to call it income until
such time as the conference successfully completes.

### Reporting The Chart of Accounts

@@ -57,6 +97,18 @@ The
[`general-ledger-report.plx` script in the `non-profit-audit-reports` Ledger CLI contrib directory](
will generate a file called `chart-of-accounts.csv`, which is the chart of accounts.

The main command-line program though, that generates the chart of accounts
looks like this:
    $ ledger -f accounts/main/books.ledger -V -F "%-150A\n" -w -s -b 2012/01/01 -e 2013/01/01 reg

Note that this is bound by date.  Typically, it makes sense to list your
chart of accounts for a specific period (e.g., your fiscal year), since your
accounts might have some cruft in them from previous years that should now be
ignored.  (For example, if your organization simplified its chart of accounts
in later years, you don't want to report those old accounts that are no
longer used.)


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