“Best Accounting” not only provides balance sheet based on [assets – liabilities = capital] and income statement based on [revenues-expenses=net income] but also provides cashbook based on [cash+deposits – cards = net cash] and InOut report based on [incomings-outgoings=net incoming]. (As increases in capital are revenues and decreases in capital are expenses, increases in net cash are incomings and decreases in net cash are outgoings.) The accounts are defined from the viewpoint of assets, liabilities, capital, revenues, and expenses. Incomings can include revenues, assets, liabilities, capital and etc. Outgoings can include expenses, assets, liabilities, capital and etc.
“Best CashBook” only provides cashbook based on [cash+deposits – cards = net cash] and InOut report based on [incomings-outgoings=net incoming]. The accounts are defined from the viewpoint of cash, deposits, cards, incomings, and outgoings. Because there are no room for assets and liabilities other than cash elements, you must define them as incomings(receipts) or outgoings(disbursements) like revenues and expenses. (“Best CashBook” provides only cash-basis accounting, but not accrual-basis accounting.) For example, in “Best Accounting”, Car is defined as an account of assets and then can be utilized to treat an outgoing in cashbook, but in “Best CashBook”, Car (or Car purchase or other names) is directly defined as an account of outgoings.
You can utilize Best CashBook as a complete accrual-basis-accounting software to manage all your assets and liabilities. Do replace deposits with assets, cards with liabilities, net cash with capital, incomings with revenues, outgoings with expenses, and net incomings with net income, then statement of cash position will be balance sheet, and InOut statement will be income statement, and cashbook will be the journal that treats all transactions including noncash transactions. If there are any interim capital transactions such as contribution of capital by owner and etc, you might have some troubles treating them. However, there are no capital transactions in housekeeping. All increases in capital result from revenues(including gains) and all decreases in capital result from expenses(including losses).
===>For even more study, refer to Flexible double entry bookkeeping system on left. |
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