If I wanted to try the accrual method for my personal banking, how would I enter my salary?
For example, I get paid on the last Thursday of the month, and I pretty much know what it'll be. Should I:
- Add in the next year's worth of monthly salary payments to my current account.
- Add next month's salary each month.
Also, what if the value changes? For example I get a promotion or bonus, or if my job were partly or solely based on commission? Surely it's not acceptable to modify those existing "transactions"?
I'm wondering if I should have a separate "account" (imaginary rather than setting up an actual account, of course) for my salary? I could put the twelve months' worth of salary payments in there, and then as real money comes into the bank each month I "transfer" it to my current account?
I used salary for this example, but the same goes for any budget item - income and expenses.
Many thanks in advance.