My finances for January 2017 is almost, even my cash account. No big unrecorded expenses in my income statement. Every single expense has been accounted for. How did I manage that?
When I started with the cash account, there was N$1500 in it but N$7 of actual cash left in my wallet. I started with the receipts I kept in my wallet whenever I pay for something in cash and I don’t record it on a smartphone app. After I recorded all of those I still had a lot of cash to make up, close to N$900.
I used a smartphone app for like a week to record my cash expenses. There was something like 8 transactions but it only accounted for about another N$200.
Finally I remembered the two big cash expenses that I didn’t record, which was a N$200 donation to the church and N$400 spent on accommodation when the wife and I went camping after new years.
There’s only a couple more transactions that I have to record like the N$200 cash I withdrew the day before yesterday, which I find take into consideration when I was reconciling.
Last night I figured out how I should record prepayments and accruals. I get my paycheck the 25th but I’m actually supposed to get it the 1st day of each month because of use the month I get from my paycheck to pay for the expenses in the following month.
When I do receive my paycheck, I record as normal, but at the end of each month I will debit Income: Salary and credit Prepaid Income and the first day of the next month I will reverse that transaction.
I know there is still a week to go in January but I can’t wait to share my income statement and prepare my budget for February because GNUCash provides very nice reports. It’s a proper accounting system.
Until next time. Thanks for reading.