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So, I'm trying to learn double entry accounting, and go figure, it's hard. At least, to the uninitiated, it is.

Now, I've spent the last while on meta trying to find out whether or not my question is on topic. You see, I'm a software developer and my wife is a stay at home mom. Somehow, what started as a hobby has turned into a furniture store. Not a store in the traditional sense, as we're online only. Basically, I keep her website running, and she handles, well, everything else.

For about a year, it was a partnership. As I understand it, from this answer, if it was a personal business that we were running, a question about managing those finances would be on topic. Last week, we incorporated it on the advice of our advisor at the bank.

Now, what I'm trying to do is enter our records starting from about November last year to current. During the time that I'm stuck on (which would be, well, the first few records... yep, I'm getting my feet wet) it was a personal business and seems to be exactly like it would have been in the answer linked. In fact, part of the justification of doing this work is because we want to make sure our 2013 taxes are in proper order. We didn't have very much for sales at the time, it was low enough that the business doesn't need to file taxes. But we still want to get it right.

In summary, my question is a very mechanical question on double entry accounting. I'm not sure how I should go about splitting the various transactions into the different buckets and all that jazz, and I'd like to ask the question here. It does relate to corporate finance, but the timeframe I'm asking about relates more to personal finance as we were not incorporated at that time.

  • "... on the advice of our advisor in the bank" - Did you remember to ask your plumber? And your gardener, just to be sure? Maybe your realtor would also be able to weigh in.... What about a lawyer? Anyway, back to your question - there has been several questions on double accounting which I remember answering, so you're OK on that. – littleadv Jul 8 '14 at 7:55
  • Yes, on the advice of the one who files our applications for credit with the bank, and argues our case with the directors. We're inclined to take the actions that result in the largest line of credit. – corsiKa Jul 8 '14 at 13:49
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Even thought you have chosen a corporation as an organizational structure, I still think you are good to go for asking questions about your small business that relates to you and your family.

As long as it is more of a "how to generally" and less of a "for my business how should I" type of question, I think you are fine.

No harm in asking.

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