Forgotten transactions

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  • Updated 3 days ago
Hi,

I was wondering how could I deal with forgotten transactions, when I make them with cash. When I use bank account I have no problems since I simply reconcile with the bank's report.

But, when i use cash there would be no report and when I reach the end of the month I have discreppancies and don't know which transactions are missing.

What could I do in this case?

Thanks
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Cesar Orlando Pallares Delgado

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Posted 1 week ago

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impaler

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I've done this in cases, like when I'm on vacation, when I'm spending cash and at times either forget to log it immediately or forget what I spent it on that night. I try to carve out 5-10 minutes each evening, to log everything I didn't do as I went, as it's easier to remember then. 

Having said that, what I've done in the cases where I forget what I did, is just kind of perform a reset of sorts...just change my balance to the amount of cash I see I have currently, and take my best guesses which envelopes I took it from. It might not be 100% accurate where I spent it, at least the balance is correct.
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Tiffany Kucifer

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Because there's no easy way to account for missing cash, you just have a couple of options when you reconcile. The simplest is to create a single transaction as an adjustment that covers the difference between your actual cash on hand and your reconciled balance. This doesn't fix your budget per se, but it does make your accounts match up in GB and reality.
I try to keep all my receipts in one place in my wallet until I'm sure they've been entered in GB; maybe if you have an easy place to keep them that might help? Or take a quick photo of each one after the transaction?
Personally, because we don't use a lot of cash and because we're not super strict with that part of our budget, I've created a much more convoluted way to deal with it. I have an account I call "Cash" and an envelope I call "petty cash". When I take cash from my bank, I do an account transfer from the bank account to the cash account (this lets me reconcile my bank account). Then I do an envelope fill with the same amount to my Petty Cash envelope.  To keep the envelope from overflowing, I also create a "miscellaneous" transaction in Petty Cash from the Cash account for some nice round number so it all matches up, and it's set to "add $0" when my monthly fill happens.
With this setup I could certainly be very accurate with my petty cash/Cash account, but it's not particularly helpful for us so it's the one account I don't really bother with. I hope that makes sense; if not please let me know and I'll post an example.
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Kamiel

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Try to get into a habit of posting the cash transactions right away. If my reconciliation is out at the end of the month, I post a cash adjustment in a miscellaneous envelope.
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Wayne Woodbury

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I have this same problem.  I try to follow Kamiel's suggestion and record it right away.  Otherwise, I forget where the money went (or came from on a happier note), and I have to record a dummy transaction to account for it, like Tiffany and Impaler.  Unfortunately, this is one of the hazards of using cash.

I had this same problem years ago when I used actual cash envelopes for budgeting.  Sometimes I didn't have correct change in an envelope or I made a purchase that applied to multiple envelopes (I hated shopping at Walmart), and I would have to account for it later.  Remembering the details was always a bugger.

Kamiel's suggestion is the best one and I would add an additional suggestion to compare your wallet to your Cash account in Goodbudget regularly.

Wayne
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Cesar Orlando Pallares Delgado

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Thanks for your suggestions to all of you. I do set an additional transaction to reconcile. I'll try Tiffany's suggestions of keeping all receipts in the same place.