[GNC] Recording transactions (date)

[R Losey]

Thanks for the pointer; now that I have a phrase for which to search, maybe
I'll find some better information.

I've always dated transactions on the day I write the check, or when I
swipe the credit card, so waiting until they clear seems odd to me.

On Mon, Apr 8, 2024 at 8:11 PM Christopher Lam <christopher.lck at gmail.com>
wrote:

> This is the formal terminology that the accountancy expert bodies deem
> "revenue recognition". Numerous formal (see IFRS and GAAP) publications
> exist, with a much better supporting evidence than our informal discussions
> here.
>
> On Tue, 9 Apr 2024, 6:12 am R Losey, <rlosey at gmail.com> wrote:
>
>> Since I first learned about recording transactions, I have always dated a
>> transaction on the date I wrote the check; similarly, when entering credit
>> card transactions, I use the date that I actually used the credit card.
>>
>> Recently, however, I was having a discussion with a friend and he said
>> that
>> he uses the bank or credit card date of entry for all of his transactions.
>>
>> I thought this was strange - probably because it is different from the
>> method I've used all of my life. Perhaps I am the odd one... or perhaps
>> it's merely a matter of choice, so I thought I'd bring it up to this list
>> to see what people think about it.
>>
>> From (a very brief) research about this topic, perhaps this is the
>> difference between cash basis accounting and accrual accounting?
>>
>>
>> After thinking about it for a bit, one issue with using the date that the
>> transactions occur is the reports, especially if one has repeating
>> transactions.  For example, if the satellite service bill is paid each
>> month on the 28th, using my method, I record a transaction on the 28th. My
>> friend will see it on the 29th or 30th, but if the weekend or holiday hits
>> just right, it can be the 1st or 2nd before he sees it. In the long run
>> everything should be the same, but the monthly sub-totals can look odd.
>> Checks can be even worse... someone may hang onto one for weeks.
>>
>> I'd appreciate thoughts on the topic.
>> --
>> _________________________________
>> Richard Losey
>> rlosey at gmail.com
>> Micah 6:8
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-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8