Query regarding reconciliation

[Ankur Sinha]

hi,

On Tue, 2010-07-06 at 05:37 -0400, jcard21 xxxxxxx wrote:

> NOTE: 1) I ALWAYS get a paper receipt – everywhere!

I do too! :)

> 
> NOTE: 2) I manually enter each and every transaction the same day it
> occurs, usually in the evening. This process takes less that 5-10
> minutes. (For those of you who don't like this process, read Benjamin
> Franklin's Autobiography. He has a guideline/template of how he spends
> his time each day, hour by hour.)

I enter it every evening when I'm done spending and back at home. 

> 
> NOTE: 3) I NEVER use (import) my Banks' or CreditCards' downloaded txn
> files. I believe this defeats the purpose of reconciliation: what I
> think I have in each account versus what each financial organization
> believes is in each account.
> 

I started with "opening balance" for my savings account and continued
from there manually. I don't import these either. But that's probably
because I don't need it yet. Even if I transfer funds from an account
online, I manually enter it into my GNUCash accounts.

> Once a month, but not on the same day, I reconcile all my "Current
> Assets" accounts:
> • Savings
> • Checking
> • Money Market
> • Certificate of Deposits
> • Cash in Safe
> • Cash in Wallet
> • Gift Cards (I HATE Gift Cards! I prefer Cash!)
> <http://www.lifehack.org/articles/lifehack/10-reasons-gift-certificates-make-horrible-gifts.html>
> • etc.
> 
> Reconciling an account usually takes 1-2 minutes.

Since I'm doing all this, and entering it all everyday, aren't the
accounts already reconciled?? That's where I was confused. When I update
my GNUCash data, I put down everything into it (and check my wallet etc.
to see if things match up, they generally do). What use is
reconciliation? Does it come handy when I forget something? Or am I just
basically reconciling *every night* (without knowing it and using the
GNUCash reconcile option)? :)

> 
> My Cash accounts: I just count what is actually in that
> account/location. If it differs from what is in gnuCash, I add an
> adjusting entry so it balances. I obviously spent that amount
> somewhere I didn't record. This rarely happens, since I ALWAYS get a
> paper receipt!
> 
> I hope this helps.
> 

Yes, that does.

Thanks, 

Ankur