I have done my personal finances using payment basis, because it is the simplest and the books of my small business are not particularly complicated.
However, I have recently had to register my business for some government things, and with registration comes the requirement that I use invoice basis instead.
I understand how to do my books according to invoice basis, however I'm not 100% clear on how to handle the border between payment and invoice. For example, if I switched on the 1st of March, how would I account for the invoices that had been issued before the 1st, but paid only after the 1st?