One of those tools available with GnuCash is invoicing. With GnuCash you can create a professional invoice that will also automatically post to your accounts receivable. So not only are you able to issue invoices, the creation of these invoices will help you keep track of money owed to you and your company. Let’s see how this is done.

First things first

Figure 1

I will be working with GnuCash 2.2.9 on a Ubuntu desktop machine. I will assume you already have GnuCash set up properly for your business and that you know how to properly track finances with this tool. Before you start creating invoices, you will have to have customers created to bill.  Let’s create a new customer. To do this open up GnuCash and go the Business > Customer > New Customer menu entry to open the New Customer editor (see Figure 1).

You will want to fill out as much information for this customer as possible. If you do not give the customer a Customer Number, GnuCash will automatically fill one in for you. Make sure you fill out both Billing and Shipping addresses for this customer.

When you are finished filling out this information, click OK to save the customer.

Figure 2

Now you are ready to create an invoice. Go to the Business > Customer > New Invoice entry to open up the Invoice creator (see Figure 2).  To associate a customer to this invoice click the Select button and do a search for your customer. If you have a lot of customers, you will appreciate the well planned search filters here. After you have your customer associated to the invoice. If you have a Purchase Order number or another means of identifying this customer account, you can add it to the Billing ID section. If you want to add Billing Terms for this invoice you will need to create Terms in the Billing Terms Editor (you can find this tool in Business > Billing Terms Editor.

When you have filled out all of the information, click OK to create the invoice. The invoice will appear in the GnuCash main window, ready to add items.

Figure 3

In Figure 3 I have added a single item to the invoice (a mixer). Make sure you enter all of the details (such as the correct Income Account). Of course you can add as many items to this invoice as you need. Pay close attention to service items as they may not be taxable items.

Posting and Printing

You can not print the invoice, until you post the invoice. When you post an invoice it moves the transactions to accounts receivable. To post the invoice click the Post button. If your window is too small (as shown in Figure 3), you will have to click the drop-down arrow to reveal the Post button. When

Figure 4

you Post an invoice you can select a Post date. If you have added terms to the invoice the Due Date (see Figure 4) will reflect these terms. NOTE: If you have multiple items in an invoice, and you want them all to be recorded separately in your asset account, uncheck the “Accumulate Splits” box.

If you have not created an account to post to, you will need to click the New button now.

Figure 5

Once you have posted the invoice you can hit <Ctrl>P to print the invoice. A printed invoice will appear like the example in Figure 5.

Final thoughts

GnuCash is a much more versatile application than most assume. Not only can you keep track of your personal finances, GnuCash easily can tackle the task of your small business or consulting finances. Give it a go and see how far you can push this fine open source application.

GnuCash is a accounting software that uses a double-entry bookkeeping system similar to that of Intuit’s Quicken. GnuCash isn’t just for personal financing. GnuCash can be deployed for small business accounting as well.

I have been using GnuCash since prior to the earliest recorded release (1.21 released on 2/27/2000.) GnuCash has served my financial needs well. But is GnuCash right for you? Before I offer up my personal opinion on this piece of software, let’s examine the features first. The latest review of GnuCash includes the following features:

• Checkbook Style Registry
• Double-entry accounting
• Reports and graphs
• Income/Expense account types
• Multiple currency support
• Stock and mutual fund portfolios
• Customer and vendor tracking
• Invoicing
• Bill payment
• Tax and billing terms
• QIF import
• OFX import
• HBCI support
• Improved import transaction matching
• Statement recollection
• Localization
• Transaction finder
• General ledger
• Online stock and mutual fund quotes
• Check printing
• Scheduled transactions
• Mortgage and loan repayment druid
• User manual

GnuCash main window

As soon as you open up GnuCash you will instantly feel at home with the user interface. Adding entries is as simple as clicking on a new entry, creating a description and then either enter the amount to subtract in the decrease column or the amount to add in the increase column. It’s very simple.

Make note of the dates in the screen shot to the right. This version of GnuCash was just recently installed yet it works with files (I used an old GnuCash file as an example) that are nearly 6 years old!

Reports are an amazing asset to GnuCash. The amount of reports GnuCash can create is fairly extensive. There are 38 different types of reports and/or graphs ranging from simple asset reports to vendor reports and receivable ageing reports.

GnuCash also allows the user to connect via online banking. I have never used this feature because I have never needed it (and because setup requires a lot of information from your bank).

My Thoughts

As I said earlier, I have used GnuCash for a long time now and have never had a single problem. GnuCash has handled multiple accounts for me and makes for some of the easiest backing up I have ever done (simply copy the flat text file GnuCash uses to a backup location or disk).

GnuCash is perfectly suited for anyone looking to replace Quicken or Money for a personal accounting software or a small business setting. For anyone needing larger scale financial needs, you need to look at a database-backend software that can handle scaling.

No matter what platform you are using, give GnuCash a try. You might just find yourself a free replacement for your standard accounting package. Just don’t expect the ability to connect to your tax software – that’s one feature GnuCash has yet to implement. Otherwise GnuCash is the perfect solution for your personal to small business accounting needs.