diff --git a/main.go b/main.go
index 45ea149..6d0d00a 100644
--- a/main.go
+++ b/main.go
@@ -235,11 +235,15 @@ func parseConfig(f io.Reader) (config, error) {
 		}
 		k, v, ok := strings.Cut(t, "=")
 		if !ok {
-			return conf, fmt.Errorf("invalid configuration: %s", t)
+			return conf, fmt.Errorf("error parsing %s: invalid syntax", t)
 		}
 		k, v = strings.TrimSpace(k), strings.TrimSpace(v)
 		if len(v) >= 2 && strings.HasPrefix(v, "\"") && strings.HasSuffix(v, "\"") {
-			v = strings.Trim(v, "\"")
+			unquotedV, err := strconv.Unquote(v)
+			if err != nil {
+				return conf, fmt.Errorf("error parsing %s: invalid quoted string", t)
+			}
+			v = unquotedV
 		}
 		switch strings.ToUpper(k) {
 		case "VERSION_PREFIX":
@@ -247,17 +251,14 @@ func parseConfig(f io.Reader) (config, error) {
 		case "GIT_SIGN":
 			b, err := strconv.ParseBool(v)
 			if err != nil {
-				return conf, fmt.Errorf("error parsing GIT_SIGN %q: %v", v, err)
+				return conf, fmt.Errorf("error parsing %s: invalid boolean value", t)
 			}
 			conf.sign = b
 		default:
-			return conf, fmt.Errorf("unrecognized configuration variable: %s", k)
+			return conf, fmt.Errorf("error parsing %s: unrecognized variable", t)
 		}
 	}
-	if err := s.Err(); err != nil {
-		return conf, err
-	}
-	return conf, nil
+	return conf, s.Err()
 }
 
 func createTag(tagName string, sign bool) error {
diff --git a/main_test.go b/main_test.go
new file mode 100644
index 0000000..841eb3e
--- /dev/null
+++ b/main_test.go
@@ -0,0 +1,87 @@
+package main
+
+import (
+	"strconv"
+	"strings"
+	"testing"
+)
+
+func TestParseConfig(t *testing.T) {
+
+	testCases := []struct {
+		input     string
+		expect    config
+		expectErr string
+	}{
+		{
+			input:  "VERSION_PREFIX=v\n",
+			expect: config{versionPrefix: "v"},
+		},
+		{
+			input:  "GIT_SIGN=1\n",
+			expect: config{sign: true},
+		},
+		{
+			input:  "VERSION_PREFIX=v\nGIT_SIGN=t\n",
+			expect: config{versionPrefix: "v", sign: true},
+		},
+		{
+			input:  "version_prefix=v\ngit_sign=t\n",
+			expect: config{versionPrefix: "v", sign: true},
+		},
+		{
+			input:  "VERSION_PREFIX=v\nGIT_SIGN=false\n",
+			expect: config{versionPrefix: "v", sign: false},
+		},
+		{
+			input:  "VERSION_PREFIX=\"version/\"\nGIT_SIGN=f\n",
+			expect: config{versionPrefix: "version/", sign: false},
+		},
+		{
+			input:  "VERSION_PREFIX=\"foo\\\"bar\"\n",
+			expect: config{versionPrefix: "foo\"bar"},
+		},
+		{
+			input:     "foo\n",
+			expectErr: "error parsing foo: invalid syntax",
+		},
+		{
+			input:     "bad_key=v\n",
+			expectErr: "error parsing bad_key=v: unrecognized variable",
+		},
+		{
+			input:     "GIT_SIGN=wibble\n",
+			expectErr: "error parsing GIT_SIGN=wibble: invalid boolean value",
+		},
+		{
+			input:     "VERSION_PREFIX=\"foo\\z\"\n",
+			expectErr: "error parsing VERSION_PREFIX=\"foo\\z\": invalid quoted string",
+		},
+	}
+
+	for i, tc := range testCases {
+		t.Run(strconv.Itoa(i), func(t *testing.T) {
+			res, err := parseConfig(strings.NewReader(tc.input))
+			if tc.expectErr != "" {
+				if err == nil {
+					t.Error("expected error not returned")
+					return
+				}
+				if err.Error() != tc.expectErr {
+					t.Errorf("expected error %q, got %q", tc.expectErr, err.Error())
+				}
+			} else {
+				if err != nil {
+					t.Errorf("got unexpected error: %v", err)
+				}
+				if res.versionPrefix != tc.expect.versionPrefix {
+					t.Errorf("got versionPrefix %s, expected %s", res.versionPrefix, tc.expect.versionPrefix)
+				}
+				if res.sign != tc.expect.sign {
+					t.Errorf("got sign %t, expected %t", res.sign, tc.expect.sign)
+				}
+			}
+		})
+	}
+
+}