Roger Davies
[ rogerdavies.net ] [ [email protected] ]
  • About Me
    • Call Me
    • Talk Archive
    • #iamindexing
    • mormon.org/Roger
  • Portfolio
    • Soft Serve Direct
    • Magrath Lions Club
    • Magrath Museum

Other stuff I use - GnuCash vs Wave Accounting

2/5/2023

0 Comments

 
Last month I shared my favorite (and free) personal finance tracking system using Google Sheets (ssdirect.com/news/personal-finance-management-another-how-to). This month I would like to share more business finance tracking methods (still free) that I have been using in recent years. This is not 'the best of' kind of review. It is only 'what I have found that really works for me'.
  • GnuCash (that I describe as a open-source free-to-use-at-no-cost Quicken clone).
  • Wave Accounting (more like a free version of Quickbooks Online - but with options to pay them for add-on services .. accounting help, online credit card payments, etc).
Picture
GnuCash is a standalone program that runs on your Windows or Linux or even Mac computer. I would have preferred a better more generic program name like 'Where-Did-All-My-Money-Go' but I guess all the good names get taken up early and some lawyer will be asked to sue you for using 'their' program name (can you even trademark the name 'Money'?). GNU is a nerdy recursive acronym used in the Linux world, but don't let that stop you. Cash is a name for that stuff you are trying to track.
  • Getting Started: You download the version that works on your system from gnucash.org/download and run it. Setting up an appropriate accounting chart of accounts (ie the bank accounts you own and the expense and income categories you want to track and use) is a bit daunting at the outset, but you can use the default set and customize it over time. You could hire an accountant I suppose, or ask a grandchild to help you, but I prefer to just do it myself. Dive in! 
  • Using the System: In theory, there is supposed to be a way to download transactions directly from your bank. I do not use this as the setup is arcane and I prefer to access my banking information directly online. I just enter transactions directly into the program as they happen. Actually, I use GnuCash as my backup system to my Google Sheets system and just copy and paste transactions between the two to keep them in sync. The interface is much like a checkbook register for each back account you set up with a date, num, description etc for each transaction. I create a saved report for Balance Sheet and  Profit Loss and use that to monitor account balances. 
  • Pro's: Double entry system. Functions much like my favorite old Quicken program (now obsolete, from my old Windows days) used to e.g. using + or- in date field increments the date up and down. Categories are efficiently entered using Quicken shortcuts e.g. Income:Other is quickly entered using unique start for each section i.e. typing 'in' finds Income, pressing : and then 'o' yields Other for the desired category .. Reports are very customizable - click Options to select which accounts to include, what currency, which dates,  and how to display them. Reports can be saved and reopened as needed. User data changes are automatically saved and backed up.
  • I like the fact that with GnuCash your data is locally stored and accessible even if the internet is down. And even if the internet is working, the website you need may go down itself, but with GnuCash .. happy days. That said, it is  somewhat rare now a days that the internet goes down or that sites stop working or go down for maintenance (but it can and does happen). On the other hand, your trusty old computer could also go poof, so IF you don't have a backup from elsewhere .. so sorry. I like to download my Google Sheets file from the cloud to my local computer as a backup, AND copy my synced GnuCash data file to backup server as well .. just in case.
Picture
More recently, I was also introduced to Wave, a free online invoicing and accounting program at waveapps.com.
  • Owned by H&R Block since 2019, headquartered in Canada, over 2 million users, offers "free-forever" features, unlimited credit card and bank accounts, plus online payment processing for a small fee (if you are in to that kind of thing). Bookkeeping services are also available for an additional fee.
  • Using the System: Wave is web-based, so no installation is necessary. Can be accessed from pretty much any browser. Transactions can be downloaded directly from many banks. Again, I do not use this feature as I feel it introduces potential risk to my banking information (as implemented via an external program called PLAID.. but who ya gonna trust? web browsers)! I enter my transactions directly or upload  from my Google Sheet via the provided "Wave Connect" extension for Google Sheets. If you are any little bit paranoid about security you probably won't want all your information up and out there on the internet anyway. Meanwhile, I am more trusting and have been testing Wave as an additional backup accounting system. The interface is much like Quickbooks online, but free!
  • Pro's: Invoicing is wonderful. Not everybody needs this, but for me it automates the entire process. Setup the template as you like, enter the information, and let it send out emails and tracks payments. Sweet! Business expense tracking is also appreciated, with ability to upload scanned copies of invoices and other free accounting tools. System is available to anyone you choose to grant access to (multi-user: presuming the internet is up and Wave is still running).  The interface speed will vary depending on how fast your internet connection is, but it will always be slower than a standalone program like GnuCash.
  • Some Con's: Not sure how to make a real backup from the cloud. Yes, I know that THEY are doing backups of some sort up there, but what if (the company goes away or changes hands, or the internet is inaccessable for longer periods of time, or I decide to migrate to some other system). No backup except printed reports. Wave is still a learning place for me, but it does weird and wonderful things with my USD vs CAD accounts e.g. thinking $10.16 USD is somehow worth about $53.63 CAN in its reports. It also automatically dumps some of my business sales into it's generic Sales income account when I prefer the specific one I set up for each sub-category business.  Hmmm My workaround for each was to add in an 'in/out correcting transaction' (ie an accounting Journal Entry) to move the amounts from where it ended up to where I wanted it so it matched the way all my other accounting systems worked. This works, but requires extra entries and time. Also, since the system is web based, it takes much longer to enter each of these adjustments .. find the account, wait for page load,  click More > Add Journal Entry, wait for page load, enter information, click Save, wait for page load .. you get the idea. The speed of your internet connection and computer will determine your actual experience, but it is noticably more laggy than either of the other two systems I have been using.
Bottom line. I like parts of each application. I love my Google Sheets system for ability to quickly capture transaction details and provide basic updated Balance Sheet information. GnuCash can be synced fairly easily with the Google Sheet but has more professional reporting with drill down and reporting flexibility. Wave is great for Invoices, but takes more work to sync the transaction data and still has some quirks (for a new user like me .. and of course, is somewhat redundant with the other two applications also in use). Your choice. For a mid to small business, either GnuCash or Wave might be more appropriate. For personal finance or a smaller business, the Google Sheets may be all you need. What say you?
Picture
0 Comments



Leave a Reply.

    Roger Davies

    My mom (and my grandkids) couldn't be at all my public speaking assignments, so I post them here for them/her and you to read ..

    Disclaimer: These thoughts are not official church policy and in the end are but my own current ideas on the subject(s) 'mingled with scripture'. Regardless, I hope they are of some value to you, dear internet browser.

    Archives

    May 2023
    April 2023
    January 2023
    June 2020
    April 2020
    October 2019
    July 2019
    August 2018
    April 2018
    July 2017
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    March 2013
    February 2013
    January 2013
    September 2012
    August 2012
    July 2012
    June 2012
    April 2012
    March 2012
    February 2012
    December 2011
    November 2011
    October 2011
    August 2011
    July 2011
    June 2011
    July 2009
    July 2008

    Categories

    All
    Baptism
    Choice
    Christ
    Christmas
    Council
    DB
    Endure
    Faith
    Family
    Fasting
    Forgive
    Gratitude
    Grow
    HC Talk
    Heart
    Hold To The Rod
    Humility
    Love
    M1
    M2
    M3
    M4
    M5
    M6
    M7
    Marriage
    Ministering Angels
    Missionary
    Prayer
    Preparation
    Pride
    Repentance
    Sabbath
    Sacrifice
    SC
    Temple
    Tithing
    Trek
    Truth
    WE

    RSS Feed

Powered by Create your own unique website with customizable templates.