On Fri, 17 Mar 2023 11:49:52 -0400 Michael or Penny Novack <[email protected]> wrote:
> > This is a philosophical point. > > There is group "M" who always enter every transaction first in their > > books and then use the bank documents to reconcile > > > > and > > > > There is group "K" who enter some things and use the bank download > > to keep their accounts. > > > > There are pros and cons to each method. Gnucash allows you to make > > your own choice. > > Well put, but more than a philosophical difference. > > The former group is "reconciling", confirming that their records > match those of the bank. Dealing with an errors or omissions. In my > personal experience, bank errors though rare do occur. Also rare but > every now and then, the error or omission at the books side. > > The second group is NOT reconciling anything. If the transactions in > the books came from a download from the bank it WILL match what the > bank bank statement. So the reconcile process in gnucash meaningless. > Any errors the bank might have made, say misreading a check, will not > be detected. We should also note that at any time the balance in the > books will be larger than the actual balance by the amount of the > "float" (checks written and sent but not yet cleared) > > Michael D Novack > > Neither of us have mentioned fraud detection. The advantage of keeping your own books and reconciling with the bank is it easier to detect potentially fraudulent transactions. Liz _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
