2

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?

Improve this question
  • 1
    I think the term you're looking for is how do I switch from cash basis to accrual basis. A quick Google search came up with this website: http://www.accountingtools.com/questions-and-answers/how-to-convert-cash-basis-to-accrual-basis-accounting.html – Chris Apr 6 '16 at 16:27
  • 1
    It's definitely called payments vs invoice basis in South Africa, although knowing the American term definitely helps because there are a ton more google results for that one, so thanks! – user40750 Apr 6 '16 at 18:08
  • Haha, no problem. Didn't mean to sound rude, I had no idea there was another term for it. – Chris Apr 6 '16 at 19:41

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy