Double Entry Accounting for Personal Finance?

Question

I'm trying to migrate from Linux to Windows. One thing I've noticed is the lack of a Windows program that can do double-entry accounting for personal finance. I have a trial version of QuickBooks installed (Pro

2004), and it seems really geared towards setting up things for small businesses. I'm having difficulty figuring out how to handle investments made in stocks, mutual funds, or retirement accounts in QuickBooks. When I set up a checking account with QuickBooks, it seems to want to classify everything as either income or an expense, but a check written up to go to a Roth IRA trust is neither.

As for Quicken, it doesn't do double-entry accounting, thus isn't particularly satisfying to me. I've heard some people say that it really "can" be double-entry accounting, so-long as you assign everything to a category. This seems rather simplistic, as one also needs to do split transactions for many things. For example, consider my paycheck. In GnuCash, what I'd do is the following

Cr: Salary Dr: Taxes (split out into federal, state, local, SS) Dr: 403(b) plan Dr: Checking account

That's a split transaction, where the money comes from one account (the credited account) and goes to multiple accounts (Taxes, 403(b), checking). It doesn't seem possible to do this in Quicken.

As for QuickBooks, I'm having difficulty figuring out how to split a transaction like that in it. What I need to do is get into the Salary account, and record the transaction from there, splitting the transaction such that the Salary account is credited, while federal tax, state tax, local tax, 403(b), and checking accounts are debited, such that the sum of those debits equals the amount the salary account was credited. However, QuickBooks seems very restrictive, and wants me to do everything from the checking account (to whence the statement data of a payment amount was downloaded); but that's incomplete information.

Can anyone help me out here? This was all relatively simple in GnuCash, as it allowed me control over the accounts I was creating. Not so in QuickBooks.

Allan Martin · Accepted Answer

There are probably even less end users that would want a personal finance product that uses double-entry accounting. This may account for the lack of programs available.

I have a trial version of QuickBooks installed (Pro

Good observation. The fact that it is the leading small business accounting program with an 86% market share has a lot to do with that.

I'm having difficulty figuring out how to handle

Just wait until you try to play an MP3 in Quickbooks.

You need a Budweiser.

I've heard some people say that it

Nothing like coming to a QuickBooks newgroup for help using Quicken.

Stick with GnuCash. The program sounds really slick to me.

>

Adrian Boliston · Answer

Surely you can edit any transaction in QB to split out the various elements of your paycheck.

Just add nominal accounts as needed!

(I have not used "quicken", but I cannot see how a NON double entry accounting package can work, as I cannot think of any transaction that does not have both a credit AND debit entry, so I would be interested to know how quicken deals with transactions!)

Allan Martin · Answer

It uses double enties but hides this fact from the end user.

HeyBub · Answer

"Greetings! I am with the Church of the Immaculate Parsnip and we are giving $5.00 to every merchant on the street. Here's your five dollars and may all your parsnips be little ones." (???)

Credits and debits are artificial constructs that live in the (non-real) universe of double-entry bookkeeping and are the original "imaginary numbers." Accounting programs, such as QB or Quicken, often bear more resemblence to video games than reality.

But, hey, if we don't save the universe, who will?

Golden California Girls · Answer

Oh yes, I can damn well testify to that. Somewhere on an old backup I have a Quicken file with a single entry in it. You don't want this file!!! It was hell finding the single entry transaction in the file. You couldn't look for it because it's other half didn't exist! Fixing it was fun because you can't create an single entry and you can't delete it either!!!

Quicken just uses terminology to hide the fact it is double entry. Category = account (without accessible register)

now sending the OP off to the Quicken group where he belongs ...

Lisa C · Answer

Comments inline:Gonna guess that is why Intuit markets QuickBooks as " the fastest and easiest way to manage your small business finances."No. When you set up a checking account with QuickBooks, it should have an account type of "bank account".When you write a check to go to your Roth IRA trust, THEN is the time you are required to enter the account(s) the money is being allocated to. The accounts CAN be income or expense account, but other account types are available.???First you complain about QB requiring you to enter an account for the Roth, and then you say Quicken doesn't appeal to you because it is not as strict?What?!?Did you even LOOK at the program? Whatever gave you the idea that Quicken cannot do splits?Not only is it possible.. there is a wizard in the program to help you set it up. The program will offer to set up your paycheck EVERY time you enter a check that includes the category of salary.Well, thank goodness for restrictions! You want to create a transaction in an...

Double Entry Accounting for Personal Finance?

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