[GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?

[Adrien Monteleone]

Yes, the principle of Materiality.

It isn't worth spending time looking for small errors. Just adjust them 
out and move on.

Otherwise, I'd say enter the transaction on what you think is the proper 
date and re-reconcile.

But that begs the question, how did you reconcile without it?

If you had to make an adjusting entry, that will also need to be edited 
or deleted.

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I always understood Petty Cash to be for incidental expenses that didn't 
necessarily need to be tracked in dedicated accounts. The physical funds 
were usually accessible without issuing a check to pay for them from a 
comptroller. But it is still 'reconciled' to cash receipts for 
purchases/payments.

They aren't necessarily 'immaterial' but merely listed as 'other expenses'.

Regards,
Adrien

On 1/7/23 3:14 PM, Geoff wrote:
> Minor Transactions
> Accountants may sometimes deem minor transactions to be immaterial. This 
> may happen when a financial controller is attempting to close the books 
> for a particular accounting period. Accountants can choose to omit minor 
> transactions from the final calculations if they would have an 
> immaterial impact on the overall financial statements.
> 
> https://uk.indeed.com/career-advice/career-development/materiality-in-accounting
> 
> So, do whatever works efficiently for you.  The time you spend 
> contemplating the "correct" date for a 60p transaction is far better 
> spent on what you do best - running your business.
> 
> (Not so long ago this would have been accounted for out of a bucket 
> called "petty cash" and reconciled once every month or so.)