This may be a horrible newbie question, but now that YNAB has got a button I can press to reconcile an account - what does it do? According to Jesse's blog about it I'm going to love it, but I still can't quite figure out what it does.
When I enter a transaction, it's automatically listed as Uncleared. Which kind of annoys me, because I would prefer the transactions to be cleared as default. According to the support pages, uncleared transactions are the one my bank doesn't know about yet... But my bank knows about my transactions the second I swipe the card, so all that means is that I have to change the uncleared status to cleared every time I enter a transaction. The only time I do a transaction the bank doesn't know about is when I transfer money from one account to another and the accounts are in different banks, in those cases the bank I transfer the money from knows that it's gone and the bank I transfer the money to doesn't know it's on its way yet.
... and now there's a THIRD status I need to pay attention to? How? Why?
I decided to test this on my "Cash" account (which brings up another cleared/uncleared question: When I pay something with cash, why shouldn't the bank, in this case my wallet, know about it?), and a dialog box told me how much money I should have in cash, I clicked okay and then the big green button, and now all my transactions in that account have tiny padlocks instead of green C's. Okay. What just happened? What is different from the way it worked in YNAB 3, where there was no reconciliation function to worry about? Should I use the reconciliation function? How does it affect my account?