Earlier quoted context omitted.
Yeah but what does a “proper ledger schema” look like??
My bad. The design is based on https://fragment.dev/docs#design-your-ledger . They have detailed docs about designing proper ledgers.
Thanks!
Show HN: Double-entry accounting based personal finance app
21–26 of 26 posts
Re: Show HN: Double-entry accounting based personal finance app
#22I'm so confused. In your example, my income is negative. In what country does it make sense to have a negative income? > You cannot categorize your salary as income, as your net-worth would be wrong. Yes you can, it's called a split transaction. $1000 income: split into $700 to my savings and $300 to taxes. I don't see the point in tracking my tax withholding in this way though, so I'd rather just put in my net salar…
It's a characteristic of double-entry accounting. Everything is an account and transactions move money between accounts. When you receive money from your salary in your bank account, the money is being debited from an Income account. We show the debit with the negative sign. > Yes you can, it's called a split transaction. $1000 income: split into $700 to my savings and $300 to taxes. Even though this would work, the…
Money is credited from an income account, I think you meant.
Congrats on the app and release, OP!
Re: Show HN: Double-entry accounting based personal finance app
#23I'm so confused. In your example, my income is negative. In what country does it make sense to have a negative income? > You cannot categorize your salary as income, as your net-worth would be wrong. Yes you can, it's called a split transaction. $1000 income: split into $700 to my savings and $300 to taxes. I don't see the point in tracking my tax withholding in this way though, so I'd rather just put in my net salar…
It's a characteristic of double-entry accounting. Everything is an account and transactions move money between accounts. When you receive money from your salary in your bank account, the money is being debited from an Income account. We show the debit with the negative sign. > Yes you can, it's called a split transaction. $1000 income: split into $700 to my savings and $300 to taxes. Even though this would work, the…
I understand that the money is debited from an "income account." In the case of income, the "income account" belongs to the company that pays me. It's not _my_ account---why would I keep track of it in my ledger?
Re: Show HN: Double-entry accounting based personal finance app
#24Earlier quoted context omitted.
It's a characteristic of double-entry accounting. Everything is an account and transactions move money between accounts. When you receive money from your salary in your bank account, the money is being debited from an Income account. We show the debit with the negative sign. > Yes you can, it's called a split transaction. $1000 income: split into $700 to my savings and $300 to taxes. Even though this would work, the…
I understand that the money is debited from an "income account." In the case of income, the "income account" belongs to the company that pays me. It's not _my_ account---why would I keep track of it in my ledger?
because you want to know how much money you got, when, and from whom, and be able to reconcile that with the money you see in your bank account. the detail is that money transfers themselves aren't instantaneous, aren't paid out instantaneously, and aren't always singular - ie you get paid by the company, but also pay taxes on that, so there are three parties to that one transaction. for a single person, the overhead isn't super justified unless you're a total nerd about it (nothing wrong with that!), but if there's an accounting department with an bunch of peopke, they can more easily keep track of issued invoices, payments due and payments recieved, for example.
it's not than all that's impossible with single entry, it's just way messier, so the overhead of double entry is considered better because the books can be more fully audited.
if you're a freelancer, you may get paid net 30 or 60 or even 90. but you still need to know how much money you have right now, how much money you're owed; financial health, P&Ls etc.
Re: Show HN: Double-entry accounting based personal finance app
#25I'm still holding out for something that can monitor my bank account and automatically register transactions instead of me having to manually enter them. https://maybe.co/ is working on a solution for American banks. I understand that Europeans already have protocols in place for this sort of thing. Why must the EU always get the nice things?
Same, used mint for something similar but too bad they dissolve it.
Re: Show HN: Double-entry accounting based personal finance app
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