Should I reconcile 3 years worth of transactions!?

[Wm]

Fri, 27 Feb 2015 16:13:55 <1425082435248-4676552.post at n4.nabble.com> 
RhysGoodwin <rhys.goodwin at gmail.com>

>Hi, first time poster here.
>
>I've been using GnuCash for about 3 years. I don't ever really enter
>anything manually into it. I just import my bank statements via OFX,
>(transactional account, mortgage, credit card etc). I then assign
>income/expenses to various accounts so I can track where my money is going.
>I do this about once a month.
>
>I've never really used the reconciliation feature as everything in GnuCash
>is direct from the bank. I'm about to start being a self employed contractor
>and want to make sure I'm doing things right as I will probably need an
>accountant to look over my books at the end of the year.

The reconciliation shouldn't be the big issue and in gnc reconciliation 
isn't a big deal as you can go back and change a reconciled transaction 
if you want to.  gnc works on the basis that if you've reconciled it you 
probably don't want to change it so gives you a warning, but you can 
turn the warning off if you really, really don't want it.

Dealing correctly with your finances as you change from employee to 
self-employed should be your interest.

>Even as a contractor the transactions into GnuCash will come from my bank
>statements, not manually. (I'll only be issuing 1 invoice a month).

That one invoice a month is the bit that changes everything.

Take a look at the Business it of gnc, make a copy of your current file 
and play.

The invoice is a financial event that you expect to have a commensurate 
event (a payment) and reconciliation is one way of joining them all 
together :)

>Should I be reconciling transactions or doesn't it matter? Should I go back
>and reconcile everything for the last 3 years?

I'd reconcile en masse up to the day before you became self-employed and 
then pay more attention after that.

Hope things go well with the change.

-- 
Wm...