The problem with cash
When you import a bank statement or catch a Monobank webhook, an ATM withdrawal shows up as one line: -$100, ATM. If you let AI categorize it as "cash" or drop it under a spending category, you've created a lie. That $100 wasn't spent — it just changed pockets. The real spending happens later, invisibly, when you buy coffee, pay a market stall, or tip a driver.
Why it matters for your reports
Two things go wrong if you treat the withdrawal as an expense:
- Double counting — the $100 counts once at the ATM, then again if you also log the coffee you bought with it.
- Blind spots — a big "cash" or "ATM" category tells you nothing. You can't see if that money went to groceries or entertainment.
A simple approach in FinMan
Pick one rule and stick with it. The cleanest option:
- Keep the withdrawal as a single neutral line in its own category like Cash — so it reconciles against your bank statement but doesn't pollute spending categories.
- As you spend the cash, add manual entries with real categories and subcategories (Groceries, Transport, Eating out).
- Set the past date on those manual entries so they land on the day you actually spent — FinMan's backdated entries make this painless.
This means the ATM line and your cash spending will roughly cancel out over the month, and your category breakdown finally reflects where the money really went.
Rule of thumb: an ATM withdrawal is a transfer, not an expense. Only log the purchase, not the act of getting cash.
Keeping it low-effort
Nobody logs every $2 snack. If tracking each coffee is too much, do this instead: at the end of the week, count what's left in your wallet, and add one manual entry for the difference under a best-guess category. It's not perfect, but it beats a mystery "$100 ATM" line.
For imported statements, let FinMan's AI auto-categorization handle card purchases — those are precise. Reserve your manual effort for cash, where the bank simply can't see the detail. Multi-currency travellers can do the same: withdraw local cash as one line, then log real spending in the currency you paid.
The goal isn't accounting perfection. It's a monthly report you can trust — one where "cash" isn't a black hole swallowing a chunk of your budget.