[Kmymoney] Needing some guidance about accounts x categories x tags

[Cristian Oneț]

2014-10-08 19:25 GMT+03:00 Joao Roscoe <joao.roscoe at gmail.com>:
> Dear Srs,

Hi,

>
> I'm a kmymoney beginner, trying to figure out the accounts/categories/tags
> setup that would best fit my needs, and I'm in need of some guidance.
> In gnucash everything is an account, while in kmymoney we have three
> different ways to classify transactions. While tags are distinct in the way
> that it will be possible to attach more than one tag to a single
> transaction, the difference between accounts and categories is not clear for
> me, so far. I could, for instance, have two accounts under liabilities -
> bills and loans - and several accounts under bills, for instance cellphone,
> utility and gym membership. I could also have all those as categories, and
> have all transactions in single checkings account. What would be the
> sensible approach?

Categories are income/expense accounts, the points where money begins
to be accounted for (income) and where accounting ends (expense). In
other words where money enters the system and leaves it.
Asset/liability accounts hold the money you are currently accounting
for (have/own), they hold your net value. So my recommendation is to
use categories as the source/destination of your incomes/expenses.

The above statements is how I understand and use the application for
personal finances, maybe you'll receive better advice from others.

Regards,
Cristian

>
> Best regards,
> Joao
>
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