Understanding Moneydance Accounts

Moneydance uses the double entry method of accounting. This means that every transaction is a link between accounts, so when money goes somewhere, one account should increase and another should decrease. For example, if you purchase $1000 in stock, your investment account should increase in value by $1000 and another account should decrease by the same amount to pay for it.

The part of this that can confuse people is that some accounts that represent a cost to you will have positive balances. For example, suppose you pay your $100 heating bill with money from a checking account, and that you keep track of your utility expenses through a utility expense account. The $100 should be taken from your checking account, and your utility expense account should increase by $100. One way to think about it is that a positive balance in an expense account means that you have had an expense.

With that out of the way, Moneydance features a number of different types of accounts. For a more specific discussion of bank, credit card, investment, asset, liability, expense, income, and loan accounts, read the chapters that follow.

By default, your accounts will appear on the Home Page. You can remove groups of accounts in your Home Page preferences. You can also hide accounts that have a zero balance. To do so, go to the account and select Account --> Edit from the toolbar, and select the box.

You can access an account from the Home Page by clicking on that account's name. You can also navigate between accounts using the account drop-down menu in the top left corner.