How do you have cash spent show in the correct month if you spend in a different month than withdraw

Question

I withdraw money from the bank and put it in "my wallet as a placeholder" and then if I don't use it in that same month, when I do use it my spending categories are off for two separate months.  One month over and the other under.   Anyone have a better way?

John_in_NC · Accepted Answer

I setup a Cash account representing my wallet.

If I withdraw cash such as you are doing, it is a transfer over to the cash account--nothing spent.

Then, when I buy something, I enter a transaction in the Cash account for it. It's 100% manually entry, but that isn't a big deal for me as I don't use cash for a lot of transactions. I reconcile once a month to what is in my wallet.