Small entrepreneur and Open Source Software?

[netfreak]

Probably a dumb question but why can'y you simple use tally?It costs just 5k i guess and is pretty decent as double entry system.

 

[kindofblue]

^Isnt that where he started off? I am out of my depth here so could not understand many parts of the discussion but GnuCash works extremely well for my home book keeping purposes. So, what's wrong with GnuCash - you don't find it scalable?

 

[gregory house]

He is already using Tally for accounting and inventory in conjunction with my system. Even with a new inventory system, he will continue using Tally for accounting because it is one of the very few systems that mimics the actual accounting process from vouchers to journal entries to ledgers to trial balance to final accounts. It is Tally's inventory system that is the irritant. While its generic nature meets the demands of a single tier taxation/ discount system, using it in his case is akin to trying to force a square plug into a round hole - it doesn't hold up very well.Nothing wrong with GnuCash except the fact that it is more of a single entry accounting system than a double entry one. Most accountants would go mad figuring out what the hell it does with their transactions. Professional accounting has very specific demands from its software and Tally is the de facto standard as far as double entry accounting systems are concerned, at least in India. The second thing is that it is not an inventory system, which is what I am interested in.The sheer agony of editing 2500 inventory items if either the price or discount changes (some of it is unavoidable, but a lot of it is not) is what is the cause of a massive headache. A configurable system that takes care of the entire inventory process from order management to billing is what the situation demands, and I am working on it as time permits.

 

[kindofblue]

Nothing wrong with GnuCash except the fact that it is more of a single entry accounting system than a double entry one. Most accountants would go mad figuring out what the hell it does with their transactions.

GnuCash *IS* a double entry book keeping software. Each transaction results in one account being credited and another one debited, if thats how you meant it.

 

[gregory house]

Any accounting application that works on a transaction model is using double entry system. In that sense GnuCash is a double entry application. But it uses a single entry system of recording entries rather than a full voucher system. That is, if you have spent 5000 bucks on various items in cash during a week, you go to the cash account and start listing various expenses and marking withdrawals and GnuCash does the double entry thing in the background for you. It even lets you complete transactions without balancing the same if you do a split entry.On the other hand, traditional accounting applications follow a voucher model of entry. In those apps, you start by creating a voucher and then specify which accounts will be debited and which will be credited. Even in cases where single entry may be used (like invoices), things happen within the confines of a voucher. The entire transaction model is different.That is why GnuCash is easy to use for personal finance and simple services based business accounting. But retailing and mass retailing at that is an entirely different ballgame. Haven't used it much. So don't know if I am missing any compelling features.