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I've used ledger for years, but it's not a 'real' double entry system, despite what the manual says. It's more halfway between cash and double entry. The 'auto

by roel_v 11y ago

I've used ledger for years, but it's not a 'real' double entry system, despite what the manual says. It's more halfway between cash and double entry. The 'auto balancing' for example, which is sold as its big feature, doesn't make sense from a double accounting perspective - the whole point is to not have it be 'auto'. Other basic things are missing - the difference balance and profit/loss accounts, for example. It's fine for personal and small business accounting, but if you've had training in real accounting some things will be confusing (because of terms meaning something else) and don't expect your accountant to be able to work with your reports if you haven't set up your system in cooperation with him/her.

merb 11y ago
you don't need the auto balancing. You could definitly write: 2015/10/12 Exxon Expenses:Auto:Gas $10.00 Liabilities:MasterCard $-5.00 Liabilities:Visa $-5.00 It's still valid. However it would fail if you put a 5 and 4 here if your expense is 10. I'm still not sure how it decides between active and passive (since Expenses and Liabilities could also be other words like the german ones: "Ausgaben", "Verpflichtungen" and the program works with them, too but It can't know if its active or passive. so I don't know what would happen if I make a transaction on two aktivas, like Bank to Cash or Bank to Fund)
- kspaans 11y ago
  Ledger doesn't differentiate between active and passive, it just makes sure the transaction balances.
avodonosov 11y ago
Do you know any better tools?
- roel_v 11y ago
  No, which is why I still use it for small subbudgets that only I neex to work on :) And look, it's a fine tool for that, but you still need real accounting experience to use it according to gaap. The way the manual describes, and how many convenience functions are structured, isn't.

by roel_v 11y ago

merb 11y ago

you don't need the auto balancing. You could definitly write: 2015/10/12 Exxon Expenses:Auto:Gas $10.00 Liabilities:MasterCard $-5.00 Liabilities:Visa $-5.00 It's still valid. However it would fail if you put a 5 and 4 here if your expense is 10. I'm still not sure how it decides between active and passive (since Expenses and Liabilities could also be other words like the german ones: "Ausgaben", "Verpflichtungen" and the program works with them, too but It can't know if its active or passive. so I don't know what would happen if I make a transaction on two aktivas, like Bank to Cash or Bank to Fund)

kspaans 11y ago
Ledger doesn't differentiate between active and passive, it just makes sure the transaction balances.

avodonosov 11y ago

Do you know any better tools?

roel_v 11y ago
No, which is why I still use it for small subbudgets that only I neex to work on :) And look, it's a fine tool for that, but you still need real accounting experience to use it according to gaap. The way the manual describes, and how many convenience functions are structured, isn't.