Accounting Question

[Carlos O.]

Hello all,

I currently keep track of my finances in GNUCash, which is a free and open source alternative to QuickBooks, Quicken, etc. I have two books open, one for my personal finances and another for my self-proprietorship. I want to have my business expenses separated from my personal ones. Right now I have a checking account that I'm designating for all my business expenses. All the accounts in my business book are marked as zero (it's a new book). I'm hoping a CPA or someone with experience can chime in here.

1. How do I start off my books?

2. If I credit the checking account amount with the amount currently in there, where do I debit from?

[Account Closed]

You don't want any money that you deposit as Start Up money to show up as Income, so you will deposit the money into the checking account and link it to an Equity Account called Owner's Equity.  This will show up as an Asset on your Balance Sheet and not as Income.

Nancy Neville