what is the Reconcile button for, is it when you can't......?

I saw a customer on youtube stating that she could not match her account with YNAB's balance and her actual bank 's balance. Due to her inability, she said she could not figure it out. As a result, she used the "reconcile button" and made it happen.

Just asking bc if so I don't want to have to use that button.

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  • The reconcile button confirms that your bank accounts and YNAB are in agreement.  It鈥檚 important to use it periodically, because that way if a transaction mistake does happen, you don鈥檛 have to search back to the date you started using the software to find it. 

     However, a lot of people mistake using the reconciliation tool for entering an automatic reconciliation transaction.  But they are not the same. If there is a discrepancy between your account and the record at the bank,  you have two options: you can find the discrepancy, or you can have  YNAB automatically enter a transaction to fix the discrepancy.  The latter means that you temporarily cede control of your budget to the software,  and a lot of us don鈥檛 like that option.  Far better, IMO,  to find the mistake and fix it.  Then, once you鈥檝e fixed the mistake, your numbers will agree and you can use the tool to indicate that they matched on date XYZ. 

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  • Got it. Thanks so much for clarity.馃榾

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  • When you reconcile your account, all cleared transactions up to the point of reconciliation are locked. Therefore if there is a reconciliation issue at a future date, you know that it happened between the last reconciliation and the present. I like to reconcile because once you do, reconciled transactions can be filtered out of the view and not clutter up my screen.

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  • Reconciliation is essential in the management of its accounts, it exists in all good accounting software.

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