Income and expenses accounting with income and expenses planning.
See also How to use a template
Manage your family's budget
The Income/Expense Group is used in this case.
In order to efficiently manage your family's budget, several accounts are available in Banana Accounting Software, in the two following Tables:
These are the accounts necessary to manage your bank and post account holdings, as well as your cash, debit and credit balances.
These are the accounts necessary to register your expenses and your income, which you will need to subdivide into their respective categories, for a proper planning.
Family members segments
In order to allocate Expenses and Income to each family member, individual Segments are set up for each of them. This will allow for retrieval of expenses and income on an individual family member basis.
Setting up takes place in the Categories table, at the bottom of the Chart of Accounts:
- Insert an asterisk in the Section column, to modify selection
- Define a title for grouping of segments in the Description column (Family members, in this example)
- In the Category column, enter a code preceded by a colon for each segment
- Insert FAM (=total of family members in this case) in the Gr column for each segment, allowing for the total to be calculated in the FAM Group row.
Setting up a budget
The family budget is set up in the Budget table. If the Budget table is not displayed, it must be activated in the Tools menu> Activate New functionalities .
In order to evaluate and manage your future expenses and possible savings, a budgeted amount needs to be entered for each category in the relative columns. If Segments are applied to each family member, individual reports for expenses and income may be generated.
Family Budget Statement
In the Account1 menu, using Enhanced statement with groups ... command, you will find Budget with segments and Budget by groups: the first one will provide a budget with details by categories totals and subtotals; the second will display the totals for the Group categories.
Budget reports will allow you to project the amount of your expenses, income and keep track of your cashflow.
Having entered your Budget amounts, you will be able to monitor the projections, instantly for your defined period, or stretching to several years.
Entering transactions is simple; they are entered in the Transactions table, in their relative columns:
- The number must be identical to the Doc number. F6 key will generate autoprogressive numeration.
- Description - Typing the first few letters will prompt a drop-down menu from which you may choose already entered text.
- Income or Expense Amount
- The account to be allocated ( Cash, Bank etc ...) for the debit or credit transaction
- The Category to be allocated, according to the tape of transaction
- When typing the first letters or numbers in an Account or Categories cell, a dropdown list will be displayed allowing you to select existing accounts or categories.
- If an Income or Expense is assigned to one particular family member, the Category will be followed by a colon and the Segment relative to the that family member.
Recurring Transactions may be set up, if necessary.
Family budget statement
You may generate a statement at any time, once you've entered all your movements, allowing you to take control of your expenses, income and balances of your accounts.
The different options for reports on your projected or current budget are available in the Account1 menu> Enhanced statements with group command; click on the relevant option to visualize all the details.
Comparison between Budget and Current
In the Account1 menu, Enhanced statement with groups command, you will find Comparison between Budget and current option that will allow display of difference of Income/Expense budgeted versus actual data for your first quarter.
This report will prove very useful to analyse in detail, where differences have occurred between projected and actual expenses, resulting in savings or wether some costs have exceeded our budget.