# Bookkeeping with GnuCash

## Initial setup

In **GnuCash Preferences** (reached via Edit » Preferences), select the **General** vertical tab (these are alphabetical), and under **Files**, uncheck "Compress files".

```{alert}
Turning off file compression is crucial because we commit our GnuCash file to Git for collaboration.
```

Also in **GnuCash Preferences**, select the **Register Defaults** vertical tab, and under **Default Style** at the top select "Auto-split ledger".

```{note}
This keeps the listing tight but allows quick recatogorization of expenses.
```