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@@ -42,26 +42,28 @@ Plain Text Accounting
</h1> </h1>
<div class="four columns"> <div class="four columns">
<h3 id="accounting">accounting</h3> <h3 id="accounting">accounting</h3>
<p><strong>accounting</strong> is tracking the flow of valuable commodities, such as money or time. It clarifies activity, priorities, obligations, opportunities. It can reduce stress and even be enjoyable.</p> <p><strong><a href="https://en.wikipedia.org/wiki/Accounting">accounting</a></strong> is tracking the flow of valuable commodities, such as money or time. It clarifies activity, priorities, obligations, opportunities. It can <strong><a href="http://podcastle.org/2009/10/09/pc-miniature-38-accounting-for-dragons">reduce stress</a></strong> and even be enjoyable.</p>
<p><strong>double-entry bookkeeping</strong> is a process for doing this reliably. For every movement of value (a <strong>transaction</strong>), both the source and destination are recorded. Simple arithmetic invariants help prevent errors.</p> <p><strong><a href="https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system">double-entry bookkeeping</a></strong> is a process for doing this reliably. For every movement of value (a <strong><a href="https://en.wikipedia.org/wiki/Financial_transaction">transaction</a></strong>), both the source and destination are recorded. Simple arithmetic invariants help prevent errors.</p>
<p>In traditional double-entry bookkeeping, value at any point in time is tracked in various <strong>accounts</strong>, classified as <strong>asset</strong> (owned), <strong>liability</strong> (owed) or <strong>equity</strong> (invested). Two more classifications track changes during some period: <strong>revenues</strong> (inflows) and <strong>expenses</strong> (outflows).</p> <p>In traditional double-entry bookkeeping, value at any point in time is tracked in various <strong><a href="https://en.wikipedia.org/wiki/Account_(accountancy)">accounts</a></strong>, classified as <strong><a href="https://en.wikipedia.org/wiki/Asset">asset</a></strong> (owned), <strong><a href="https://en.wikipedia.org/wiki/Liability_(financial_accounting)">liability</a></strong> (owed) or <strong><a href="https://en.wikipedia.org/wiki/Equity_(finance)">equity</a></strong> (invested). Two more classifications track changes during some period: <strong><a href="https://en.wikipedia.org/wiki/Revenue">revenues</a></strong> (inflows) and <strong><a href="https://en.wikipedia.org/wiki/Expense">expenses</a></strong> (outflows).</p>
<p>Transactions consist of <strong>debits</strong> (increases to asset or expense accounts, or decreases to liability or equity accounts) or <strong>credits</strong> (decreases to asset or expense accounts, or increases to liability or equity accounts).</p> <p>Transactions consist of <strong><a href="https://en.wikipedia.org/wiki/Debits_and_credits">debits</a></strong> (increases to asset or expense accounts, or decreases to liability or equity accounts) or <strong><a href="https://en.wikipedia.org/wiki/Debits_and_credits">credits</a></strong> (decreases to asset or expense accounts, or increases to liability or equity accounts).</p>
</div> </div>
<div class="four columns"> <div class="four columns">
<h3 id="with-text">… with text</h3> <h3 id="with-text">… with text</h3>
<p><strong>Ledger</strong> and the other <strong>Ledger-likes</strong> inspired by it are minimalist software tools for efficient double-entry accounting. This site introduces them and their way of doing things.</p> <p><strong><a href="#ledger-likes">Ledger</a></strong> and the other <strong><a href="#ledger-likes">Ledger-likes</a></strong> inspired by it are minimalist software tools for efficient double-entry accounting. This site introduces them and their way of doing things.</p>
<p>Accounting data is valuable; we want to know that it will be accessible for ever - even without software. We want to know when it changes, and revision-control it. We want to search and manipulate it efficiently. So, we store it as human-readable <strong>plain text</strong>.</p> <p>Accounting data is valuable; we want to know that it will be accessible for ever - even without software. We want to know when it changes, and revision-control it. We want to search and manipulate it efficiently. So, we store it as human-readable <strong><a href="http://ledger-cli.org/3.0/doc/ledger3.html#The-Most-Basic-Entry">plain</a> <a href="http://hledger.org/manual.html#journal">text</a></strong>.</p>
<p>We simplify debits and credits by using <strong>signed numbers</strong> instead - positive for inflows to an account, negative for outflows from an account.</p> <p>We simplify debits and credits by using <strong><a href="http://ledger-cli.org/3.0/doc/ledger3.html#Stating-where-money-goes">signed numbers</a></strong> instead - positive for inflows to an account, negative for outflows from an account.</p>
<p>We define arbitrary <strong>account hierarchy</strong> to suit our needs. This scales smoothly from simple to complex scenarios, and from high-level overview to fine detail.</p> <p>We define arbitrary <strong><a href="http://ledger-cli.org/3.0/doc/ledger3.html#Structuring-your-Accounts">account</a> <a href="http://hledger.org/manual.html#account-names">hierarchy</a></strong> to suit our needs. This scales smoothly from simple to complex scenarios, and from high-level overview to fine detail.</p>
<p>Ledger-likes are, at least in part, <strong>command-line</strong> tools. This makes them efficient to use and very <strong>scriptable</strong> and flexible.</p> <p>Ledger-likes are, at least in part, <strong><a href="http://ledger-cli.org/3.0/doc/ledger3.html#Basic-Usage">command-line</a> <a href="http://hledger.org/manual.html#usage">tools</a></strong>. This makes them efficient to use and very <strong><a href="#related-tools">scriptable</a></strong> and flexible.</p>
<p>Ledger-likes also, at their core, tend towards <strong>functional operation</strong>: they read the input data without changing it, and output a report. This simplicity makes them easy to understand and rely on.</p> <p>Ledger-likes also, at their core, tend towards <strong><a href="https://en.wikipedia.org/wiki/Function_(mathematics)">functional operation</a></strong>: they read the input data without changing it, and output a report. This simple model makes them easy to understand and rely on.</p>
</div> </div>
<div class="three columns"> <div class="three columns">
<h3 id="questions">questions ?</h3> <h3 id="questions">questions ?</h3>
<p><strong>do I really have to use only text ?</strong><br />
No! Not entirely. Just a bit. Decreasingly. <strong><a href="#ui-console">GUIs</a></strong> are appearing.</p>
<p><strong>who is this for ?</strong><br /> <p><strong>who is this for ?</strong><br />
Techies, power users, and do-it-yourself-ers, at least for now. If you need a rich GUI and lots of structure, you may prefer a more traditional GUI tool.</p> Techies, power users, and do-it-yourself-ers willing to use a <strong><a href="https://en.wikipedia.org/wiki/Text_editor">text editor</a></strong>, for now. If you need a rich GUI and lots of structure, you may prefer a traditional GUI tool.</p>
<p><strong>what are the alternatives ?</strong><br /> <p><strong>what are the alternatives ?</strong><br />
GNUCash, Grisbi, KMyMoney or other FOSS tools, proprietary tools like Quicken/Quickbooks, online tools like Xero, spreadsheets, paper accounting.</p> FOSS tools like GNUCash, Grisbi, KMyMoney, proprietary tools like Quicken/Quickbooks, You Need A Budget, online tools like Xero, FreeAgent, spreadsheets, paper accounting. (There are <strong><a href="https://en.wikipedia.org/wiki/Comparison_of_accounting_software">many</a></strong>).</p>
<p><strong>why is this better than QuickBooks ?</strong><br /> <p><strong>why is this better than QuickBooks ?</strong><br />
Your data remains accessible. No yearly fees. Free software you can fix and port. Cross platform. Scriptable. Efficient.</p> Your data remains accessible. No yearly fees. Free software you can fix and port. Cross platform. Scriptable. Efficient.</p>
<p><strong>how do I communicate with my accountant ?</strong><br /> <p><strong>how do I communicate with my accountant ?</strong><br />

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index.md
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@@ -9,62 +9,81 @@
### accounting ### accounting
**accounting** is tracking the flow of valuable commodities, such as money or time. **[accounting](https://en.wikipedia.org/wiki/Accounting)** is tracking the flow of valuable commodities, such as money or time.
It clarifies activity, priorities, obligations, opportunities. It clarifies activity, priorities, obligations, opportunities.
It can reduce stress and even be enjoyable. It can **[reduce stress](http://podcastle.org/2009/10/09/pc-miniature-38-accounting-for-dragons)** and even be enjoyable.
**double-entry bookkeeping** is a process for doing this reliably. **[double-entry bookkeeping](https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system)** is a process for doing this reliably.
For every movement of value (a **transaction**), both the source and destination are recorded. For every movement of value (a **[transaction](https://en.wikipedia.org/wiki/Financial_transaction)**), both the source and destination are recorded.
Simple arithmetic invariants help prevent errors. Simple arithmetic invariants help prevent errors.
In traditional double-entry bookkeeping, value at any point in time is tracked in various **accounts**, classified as In traditional double-entry bookkeeping, value at any point in time is tracked in various **[accounts](https://en.wikipedia.org/wiki/Account_(accountancy))**, classified as
**asset** (owned), **liability** (owed) or **equity** (invested). **[asset](https://en.wikipedia.org/wiki/Asset)** (owned),
Two more classifications track changes during some period: **revenues** (inflows) and **expenses** (outflows). **[liability](https://en.wikipedia.org/wiki/Liability_(financial_accounting))** (owed)
or **[equity](https://en.wikipedia.org/wiki/Equity_(finance))** (invested).
Two more classifications track changes during some period:
**[revenues](https://en.wikipedia.org/wiki/Revenue)** (inflows)
and **[expenses](https://en.wikipedia.org/wiki/Expense)** (outflows).
Transactions consist of **debits** (increases to asset or expense Transactions consist of
accounts, or decreases to liability or equity accounts) or **credits** **[debits](https://en.wikipedia.org/wiki/Debits_and_credits)** (increases to asset or expense accounts, or decreases to liability or equity accounts) or
(decreases to asset or expense accounts, or increases to liability or **[credits](https://en.wikipedia.org/wiki/Debits_and_credits)** (decreases to asset or expense accounts, or increases to liability or equity accounts).
equity accounts).
</div> </div>
<div class="four columns"> <div class="four columns">
### … with text ### … with text
**Ledger** and the other **Ledger-likes** inspired by it are minimalist software tools for efficient double-entry accounting. **[Ledger](#ledger-likes)** and the other **[Ledger-likes](#ledger-likes)** inspired by it
are minimalist software tools for efficient double-entry accounting.
This site introduces them and their way of doing things. This site introduces them and their way of doing things.
Accounting data is valuable; Accounting data is valuable;
we want to know that it will be accessible for ever - even without software. we want to know that it will be accessible for ever - even without software.
We want to know when it changes, and revision-control it. We want to know when it changes, and revision-control it.
We want to search and manipulate it efficiently. We want to search and manipulate it efficiently.
So, we store it as human-readable **plain text**. So, we store it as human-readable **[plain](http://ledger-cli.org/3.0/doc/ledger3.html#The-Most-Basic-Entry) [text](http://hledger.org/manual.html#journal)**.
We simplify debits and credits by using **signed numbers** instead - We simplify debits and credits by using
**[signed numbers](http://ledger-cli.org/3.0/doc/ledger3.html#Stating-where-money-goes)** instead -
positive for inflows to an account, negative for outflows from an account. positive for inflows to an account, negative for outflows from an account.
We define arbitrary **account hierarchy** to suit our needs. We define arbitrary
**[account](http://ledger-cli.org/3.0/doc/ledger3.html#Structuring-your-Accounts)
[hierarchy](http://hledger.org/manual.html#account-names)**
to suit our needs.
This scales smoothly from simple to complex scenarios, and from high-level overview to fine detail. This scales smoothly from simple to complex scenarios, and from high-level overview to fine detail.
Ledger-likes are, at least in part, **command-line** tools. Ledger-likes are, at least in part,
This makes them efficient to use and very **scriptable** and flexible. **[command-line](http://ledger-cli.org/3.0/doc/ledger3.html#Basic-Usage) [tools](http://hledger.org/manual.html#usage)**.
This makes them efficient to use and very
**[scriptable](#related-tools)** and flexible.
Ledger-likes also, at their core, tend towards **functional operation**: Ledger-likes also, at their core, tend towards
**[functional operation](https://en.wikipedia.org/wiki/Function_(mathematics))**:
they read the input data without changing it, and output a report. they read the input data without changing it, and output a report.
This simplicity makes them easy to understand and rely on. This simple model makes them easy to understand and rely on.
</div> </div>
<div class="three columns"> <div class="three columns">
### questions ? ### questions ?
**do I really have to use only text ?**\
No! Not entirely. Just a bit. Decreasingly. **[GUIs](#ui-console)** are appearing.
**who is this for&nbsp;?**\ **who is this for&nbsp;?**\
Techies, power users, and do-it-yourself-ers, Techies, power users, and do-it-yourself-ers willing to use a
at least for now. **[text editor](https://en.wikipedia.org/wiki/Text_editor)**, for now.
If you need a rich GUI and lots of structure, you may prefer a more traditional GUI tool. If you need a rich GUI and lots of structure, you may prefer a traditional GUI tool.
**what are the alternatives&nbsp;?**\ **what are the alternatives&nbsp;?**\
GNUCash, Grisbi, KMyMoney or other FOSS tools, proprietary tools like Quicken/Quickbooks, online tools like Xero, spreadsheets, paper accounting. FOSS tools like GNUCash, Grisbi, KMyMoney,
proprietary tools like Quicken/Quickbooks, You Need A Budget,
online tools like Xero, FreeAgent,
spreadsheets,
paper accounting.
(There are **[many](https://en.wikipedia.org/wiki/Comparison_of_accounting_software)**).
**why is this better than QuickBooks&nbsp;?**\ **why is this better than QuickBooks&nbsp;?**\
Your data remains accessible. Your data remains accessible.