Should I retroactively enter credit card transactions?
Hi. First, I manually enter all transactions. It keeps me more accountable. However, I neglected to enter transactions for a credit card for almost a year and now my YNAB balance is $750 less than my actual credit card balance. Should I go back and enter all those individual transactions or enter one "adjustment" transaction so the balances will be correct and move forward from here? I don't mind entering all of the individual transactions I just don't know how it will effect my budget for all those previous months. Would appreciate any guidance on how to proceed. Thanks!
I suppose it depends on two factors:
- How much time you have, and how many transactions there are
- How much you use past spending to inform future category budgeting
Adding an adjustment won't really inform you how much you were spending on a particular category, but it will get your accounts to balance with YNAB.
You say you've not reconciled this credit card for nearly a year, so that will take a while to enter all those past transactions.
Of course, it's completely up to you. If you enter an adjustment, it won't affect your past budgets, it will simply take it from this month's TBB, so you'll have to cover that $750 from other categories.
Entering past transactions will affect your past budgets, showing overspend in those categories, but at this stage I'd just ignore it and the net result will be the same, you'll be $750 down in this month's budget as you overspent in previous months.
My approach would be to just draw a line in the sand here and promise myself to reconcile more frequently.