I see payslip both in accrued and cash basis option. Should the payslip appear in cash mode if the payment has not yet been done. I think not. It should appear only after the payment has been made.
The answer depends on where you are looking. Manager is a full, double-entry, accrual based system at its core. When it offers options for cash basis, only the reporting or display changes. Think about a business operating on the cash basis, but with employees. Should they not be able to enter payslips?
I acknowledge my debt to an employee but his compensation is still pending
the same way that I have received an invoice from a supplier but didn’t do
the payment yet. I should see the amount on cash basis mode only once the
payment has been made. When I open the Payslip I see on top the box “spend
money” which means that I haven’t spent the money yet hence accrued but not
cash
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Yes, you see it. But it doesn’t mean what you think it does. The same Spend money button is visible when viewing a purchase invoice that has already been paid in full. That is just a design feature of the user interface. It allows you to overpay someone if you want to.
As for what shows on the Balance Sheet on the Summary page, that may not be a classical “pure” cash-basis balance sheet, depending on such things as whether you have supplier or customer credits and some other things. And you may see some differences between the Summary page and an actual cash-basis Balance Sheet report. The reason is that Manager allows you to do things that cannot be adequately recorded under cash basis so you can switch back and forth between accrual and cash basis.
This is the reason most accountants prefer accrual basis account. The accrual approach more accurately reflects both your current position and performance. In some tax jurisdictions, if you use cash basis accounting, you cannot even record payslip deductions until the employee is actually paid and the amounts are deducted. This can actually result in wages and deductions for the same period being recorded in different periods. (That’s complex, as you can imagine.)
For further information, you might start here:
I think that the definition of cash basis, that you referred me to, says
exactly what I say. That if I don’t pay for something it doesn’t show on
the balance sheet. And although I mainly work with accrued mode I want to
be able to follow my cash flow by turning to cash mode. I, sometimes owe
money to my employees and sometimes I pay them in advance to facilitate
them. I should be able to follow that.
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