Setting up KMyMoney - Accounting for the Rest of Us Part 2

The selected account type determines the preset categories used for every expenditure.  Users can remove or delete categories as needed by clicking Categories on the left pane.  Right-clicking any of the listed categories allows the user to edit, create, and delete items on the list.

Logging an Expense (or Income)
Debits and credits are recorded on a ledger.  KMyMoney balances everything out using the standard approach to accounting.

To add an expense to the ledger:

1. Click Ledger on the left panel.

2. Select Withdrawal tab.  Any type of cost or expenditure is considered a withdrawal by KMyMoney because it reduces your overall wealth.

3. Click the New button.

4. On the Pay to field, type the Payee name.  The Payee is the recipient of the money - 711, Wal-Mart, Starbucks, your friend, etc.  KMyMoney will automatically remember previous payees, allowing users to eventually select repetitive expenditures like lunches at the cafeteria or electricity bills. 

5. On the Category field, select the appropriate category from the list.

6. On the Memo text box, type any additional description.

7. The Date is automatically filled out with today's date.  Click the Calendar button to change the date if the purchase or income occurred on a different date.  This is especially important when back tracking on previous dates.

8. Enter the Amount or press the Calculator button to pull up an integrated calculator for quick computations. 

9. Click Enter to add the entry to the ledger.

KMyMoney is an extremely powerful accounting application.  Investments can be tracked and Budgets can be set.  Besides the Ledger, casual users can use the Reports feature to track monthly, weekly, and overall cash flows.