GnuCash operates under the GNU General Public License license. This means that the software is free for anyone to download and use. And when someone is trying to figure out a budget and learn how to better manage money, a free tool that can help is greatly appreciated. GnuCash is just that tool.
GNUCash Good for Personal or Small Business
While it’s not as versatile as some programs available and not as personalized as a spreadsheet can be (if someone really knows how to use spreadsheet really well) this is a great little tool. It will automatically update assets based on entries in other accounts, basically building a personal “balance sheet”. The program works off of a proper double entry accounting system, both for personal and small business. And they really should be treated the same!
The setup interface allows one to choose whether to use it for personal, small business, or both accounts. It’s rare to see a program that is this versatile and free! Expenses are linked to the account that is chosen when each expenses is entered, showing exactly where the money come from. Income, of course, also goes into whichever account is chosen. Loan and mortgage payments can be scheduled. Investments, including retirement accounts, can be tracked. And all manners of business reports can also be ran (accounts payable, accounts receivable, customers, and so forth).
GnuCash is Also a Budget Tool
With something that is this well designed for business and account tracking, it is extremely rare to see a decent budgeting module. With GnuCash, however, the designers had personal budgeting in mind as part of their design objectives. At first it isn’t intuitive to figure out how to use this program, so it is well worth spending a few extra minutes going through the help tutorial. The tutorial is very thorough and explains pretty much anything that one would need to know in order to operate the program. The budgeting module is accessed through the File Menu (New --> New Budget), and offers a wonderful little options box so that a basic budget block (weekly, daily, monthly, or annual period) can be set up. As well each expense can be budgeted on its own time using the scheduler.
Multiple File Capability
GnuCash also allows set up multiple file with, so that a small business in one file can be kept in one file and personal finances in another. This makes it really useful for those small business owners who are on top of their finances and tracking. In any small business, even sole proprietorships, the business and personal expenses should be kept separate, but not everybody does this, as many proprietors will operate their business out of a personal bank account. With GnuCash, one can actually operate both the business and personal side of money management with one file – although no accountant would ever recommend doing that.
Overall, GnuCash is one of the better programs available, especially considering its price! It has as much functionality as many professionally sold applications, and more than some. Anyone who needs an inexpensive and concise way to track small business or personal finances should download it.
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