Hari's Corner

I have recently started using GnuCash to maintain my personal finances and I have really begun appreciating the benefits of financial accounting (though I don't presume to understand all the concepts in it). But once you get the simple concept of double-entry book keeping, it's plain sailing.

The biggest challenge is not the theory, but the practical business of updating the books every day so that the accounts match reality. Again, there are certain principles of financial accounting that tell you how to enter different types of transactions and under what heads. Since I will become a professional in a few months and earning a (variable) professional income, I think this is essential for me. Maintaining a tab of daily spending or earning is just good discipline. One feels more in control of money if it is accounted for properly.

The reason I chose GnuCash is because it's Free Software and probably one of few that works under Linux natively. It's also sufficiently feature rich to expand into a small business accounts management software. I plan to expand my knowledge of basic financial accounting so that I can manage money better in the future.

Yes, it is a chore but I think it's essential for any self-employed entrepreneur or independent professional to manage proper personal and business accounts. Gone are the days of greasy ledgers, registers and manual reconciliation; software tools like GnuCash make this process so simple, I see no real excuses for people not to use them.