Tax accounting date question

[John Sowden]

On 05/19/2013 02:12 PM, Liz wrote:
> On Sun, 19 May 2013 20:16:19 +0200
> Nestor Stura <nestor.stura at gmail.com> wrote:
>
>> Do you know how to manage a posting that is done on a date but
>> corresponds to a different one?
> I put the date as the 31st March. (etc)
> _______________________________________________
This issue is similar to how I handle time sensitive issues.  We are on 
cash accounting, not accrual.  When I write my checks in the 3rd of say 
April, I date the checks March 31, so the transaction is inside the 
period (quarter or month) that the expense was incurred and the benefit 
to the company (worker productivity) was received. Friends call this 
"modified cash".  Of course I am writing paper checks, not making 
electronic transfers to their bank accounts. This also means that I have 
no adjusting entries at the end of a period that I pull financial 
statements (quarterly).  Except, of course,  to adjust the asset office 
supplies to account for the pieces of paper and pencil lead that was 
consumed during the quarter  :)

John