I do my credit cards the same way, but I don't do individual bills that way. For instance the water bill, gas bill, medical copayments, and any one time spending, I just record it as a transaction between the bank and the expense. The liability accounts are very good for aggregating what's going to be part of a payment, but they don't do much for you when there's only one charge against a payment.
Ed On Fri, Nov 22, 2024, 07:05 Michael Hendry <hendry.mich...@gmail.com> wrote: > > > > On 21 Nov 2024, at 19:08, Griffin <grif...@bernevyl.com> wrote: > > > > I'm no accountant, so I'm wondering what the difference is between > liabilities and expenses, and the importance of that difference. > > Nor I, so my comments are not definitive. > > > > > I currently have GnuCash set up so that everything I spend is an > expense. Would it be "better" to have the recurring bills as liabilities, > i.e. rent, utilities, etc. If that is the case, would I place a debt onto > the liability at the statement date, and then payment when I make a payment. > > Liabilities accounts are used to record money you’re going to have to pay > at some time in the future, and I use them from credit and debit cards in > my personal Gnucash accounts. > > Credit card spending is recorded as a transaction between > Liabilities:Mastercard and Expenses:Groceries (or whatever) and the > Liability disappears when you pay off the credit card (recorded as a > transaction between your bank (e.g. Assets:Current Assets:Bank) and > Liabilities;Mastercard). > > Michael > > > > > Does it really make any difference to anything? > > It means you can reconcile expenditure on your credit card with the credit > card statement. > > > > > Thanks > > > > Griffin > > > > > > -- > > This email has been checked for viruses by Avast antivirus software. > > www.avast.com > > _______________________________________________ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > ----- > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
