GNUCash value proposition

Abhijit Kshirsagar abhijit86k at gmail.com
Thu Jun 1 12:48:46 EDT 2017


This is a superb note about how reconciliations should be used.
Abhijit

On 24 April 2017 at 12:02, Buddha Buck <blaisepascal at gmail.com> wrote:
> I am not a Quicken convert, but I'll point out a benefit of entering your
> transactions manually as Russell and CM suggest: It gives you a point of
> comparison when doing a bank reconciliation.
>
> The purpose of an account reconciliation is to make sure that your view of
> your accounts with an outside entity match their view of your accounts with
> them. If you think you deposited $500 into your bank account, you want to
> be sure the bank thinks the same thing. If the bank thinks you paid $354
> via a debit card, you want to be sure that you agree. If you don't agree,
> then there's a problem -- either the bank made an error, you made an error,
> or something nefarious is going on.
>
> If you import transactions that your bank says you did, then that
> fraudulent $354 debit card transaction will become part of your personal
> record of what happened in your account. You won't catch it unless you
> review your transactions. Reconciliation will say "Yep, the bank says I
> spent $354, my records says I spent $354, so OK, everything's good". And
> you're out $354.
>
> On the other hand, if you manually enter your transactions, then do a
> reconciliation, then you will see the $354 transaction from the bank, but
> not in your records, and you have an opportunity to go "wait, what's up
> here?" and catch the fraud. You would also catch the $25 birthday check you
> gave your nephew that he hasn't cashed yet, and the $25 birthday check to
> your niece that you forgot to record that she *has* cashed. None of those
> would be noticed if you imported your transaction report from the bank.


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