Flipping Personal Financial Management Processes

This week’s episode discusses our personal financial management systems

These systems have historically required recording the data after the transaction has occurred. They are independent of the transaction systems, and have always been in a clean up mode, rather than capturing the transactions at inception.

What would be the implications of swapping these processes? What if our personal financial management systems recorded the attributes first–which almost always go at least one step beyond what is required for the transaction even if only to record a category or chart of account definition–and then the transaction process takes place?

I think this might eliminate reconciliation in our personal financial world.

This is Episode 185 of Conversations with Kip, the best financial system vlog there is. Literally learn more–about ledgers and financial systems–at FinancialSystemsEducation.com

Watch all episodes in order at the Conversations with Kip playlist

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