Basics Of Accounting

First of all: Please visit a course for basics of accounting!

Learn the classification of a balance sheet (Bilanzgliederung)

  • Remove the word “Less” at “Liabilities” (Entfernen Sie das Wort “Weniger” bei "Verbindlichkeiten)
  • Remove the account “Starting balance equity” (Entfernen Sie das Konto “Startkapital”)
  • Remove the account “Suspense” (Entfernen Sie das Konto “Übergangskonto”)
  • Remove the account “Retained earning” (Entfernen Sie das Konto “Gewinnrücklagen”)

=> Every user should be able to create his own sheet according to the rules

Learn the principles of accounting (Grundsätze ordnungsmäßiger Buchführung)

The principles of accounting request a chronological order for each transaction in a journal (= Grundbuch)

  • At-Least-Labels for the journal: debit (Soll) / credit (Haben)
  • Most important: first debit than credit = Soll an Haben
  • A journal in chronological order is not printable in your program (Not even as custom report)

The principles of accounting also request a functional order in a general ledger (= Hauptbuch)

  • At-Least-Label for the ledger: counter accounts (= Gegenkonten)
  • Counter accounts are not available in your program (Not even as custom report)

Thank you very much

Is this a complaint about quality of translation in German language?

Be welcome in the new world of accounting called
You always have a choice, accept the way works, or hold on to the ancient way of bookkeeping. You have lots of accounting software you can choose from.

My humble advice? Take a tour, see how works and be surprised!

The new world of accounting must nevertheless accept the standards. In general is a good software but in particular dedicated to be improved.

@JosefBrunner, your complaints indicate you are not aware of the many features and options of the program. I encourage you to read the Guides.

Be sure I know the basics of accounting. And I am nearly despaired upon the features of the program. The simply things are the problem.

It is easy to say: Leave it and take another product.

What is your aspiration? Your product may have a lot of features and options but is not able to perform the least.

Why the word “Less”? Only “Liabilities” is enough. Everywhere.

No. I ain’t complaining.
This is only the identifying of a lack.

First of all, can we all stop being defensive and try to listen to the other side?

If there is something in Manager that is incorrect because of accounting standard - it needs to be fixed.

Other suggestions such as removing Less prefix from Liabilities is a matter of user preference. Both are correct. It’s just that Manager doesn’t give you option to not have Less prefix. But it doesn’t make Manager incorrect as per accounting standard.

Balance sheet report doesn’t show Less prefix. I know this is a bit inconsistent. Maybe the case can be made that Liabilities group doesn’t need to have prefix shown anywhere as a matter of consistency.

That’s right. But you do not have to sign an item as positive or negative. In double accounting are all items positive. The prefix “Less” is unnecessary.

Accounts like “Starting capital” and “Suspense” are unnecessary too.

I don’t understand this. How they are unnecessary? If these accounts hold balance, they need to be shown.

Obviously accounts like Starting balance equity or Suspense shouldn’t have balance if your books are complete but if you are in the middle of setting up starting balances or just after import of bank statement where your transactions are in suspense, these accounts are necessary to still confirm all debits and credits equal.

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This is what I was referring to when I said you were not aware of the features of the program. Starting balance equity and Suspense accounts are both automatic, and they represent mistakes. Starting balance equity is how Manager balances the accounting equation until you properly set things up. Suspense is where the program stores incorrect, incomplete, or unbalanced entries until you fix them.

When your entries are correct, both accounts disappear.

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Can you post screenshot? I’m not able to reproduce this.

They disappear if you choose Exclude zero balances.

Let’s discuss later. It is 2:30 a. m. in Germany. Have a nice Day.

When the BS report format is A=L+E and zero balances are not suppressed, the Less: Liabilities group label is displayed. When zero balances are suppressed, the group is labeled Liabilities.

The Less: Liabilities is also converted to just Liabilities for the A-L=E option.

In other words, it isn’t A=L+E versus A-L=E. What controls is whether zero balances are suppressed.

I can reproduce it now. Fixed in the latest version (20.6.85). I have also removed Less prefix from Summary screen to keep it consistent since it’s not shown on reports.

I mean for those who are used to Assets = Liabilities + Equity formula it doesn’t really make sense to see it there anyway.

@JosefBrunner raises another point for consideration. On the Balance Sheet report, when zero balances are not suppressed, Starting balance equity and Suspense accounts are displayed, although they are zero. It seems perhaps these should be treated differently from other zero-balance accounts because—by being zero—they merely indicate everything is entered correctly. You might want to display other zero-balance accounts (such as a clearing account), yet have no reason for these to be on your balance sheet report. This is related to Make zero-balance Suspense account visible if transactions are present, in the ideas category.

You could eliminate ‘Less’ from the P&L Statement on the Summary page and the P&L Statement report too. :wink:

Less: prefix on P&L is required because top-level categories are not fixed. They can be named anything so Less: prefix is required to make it easier to follow the report. The case can be made that it should be an option to make it visible or not.

On Balance Sheet, top-level groups are fixed… it’s always Assets, Liabilities and Equity. For every business in the world.