[GNC] Recording transactions (date)

[Liz]

On Mon, 8 Apr 2024 17:11:37 -0500
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.

I think it is a philosophical difference.
There are legal ramifications, especially when you are spending money.
If you future date transactions you may spend money you don't actually
have. In my jurisdiction a business doing this is in big trouble, for
"trading while insolvent". 
It is not the difference between cash and accrual accounting, but is
part of the differences.

Liz