You recording transactions can define the type of account as Asset, Liability, Expense, or Equity. When you increase COGS (which happens when you sell inventory), it’s a debit. You can always opt for the paid subscription – but you don’t have to!

Wave Accounting

Every transaction must debit one account in the same amount that it credits the others. The difference between revenue and expenses exactly equals the total of assets and liabilities, ensuring that the accounts balance. GnuCash mobile app is also available for Android and iOS users. The app allows users to record transactions anywhere and later manually import them into the desktop version. Wave has 14 reports, about half of which relate to Wave payroll (the company supplies full-service payroll to 14 states currently; the rest require self-filing of payroll taxes).

How Does Wave Handle Expenses and Bills?

In addition to the features mentioned above, GnuCash also offers a number of small business accounting features. In other words, account reconciliation lets the user look at a bank statement and compare it to the transactions in an account. This is a great way to find unrecorded transactions or mistakes in data entry and make sure your books match the bank. GnuCash has a wide range of management reports and financial statements that can be used for reporting. When choosing a report category, the different report options for that category will be shown. GnuCash is an excellent accounting software in terms of its functionality and ease of use.

Version 2.5 Available

You can also set an automatic reminder when a transaction is due. The GnuCash checkbook-style register provides a custom, convenient and familiar interface to entering financial transactions. Another downside of using GnuCash is that it has limited support.

For example, you’ll notice GnuCash that scores much higher as a personal finance tool. Below are details of some of the numerous features that GnuCash has to offer to its users. But, if these drawbacks are something that you can’t overlook, make sure to check out GnuCash alternatives.