When to enter the transaction

When to enter the transaction

If you go into a little more detail, you may be concerned about when to recognize changes in money. For example, if you sign a contract with someone, would a deal happen at the moment? Or does it have to be deposited in the bankbook? The criterion for dividing this is that accounting says accrualism and cashism.

Accurrenceism sees the moment when a contract for money occurs as the time to enter the transaction. Even if there is no money in the bankbook the moment you sign a contract with someone, you have already registered your assets as receivables, and you believe that you have generated profits. This way, you can check the balance of these accounts receivable and prompt you if there is no money in your account in the future. If deposits are made to the bankbook later, it is treated as a transaction in which money is transferred from accounts receivable to the bankbook without generating additional profit.

Cashism, on the other hand, is actually based on a situation where money comes into the bankbook-something real movement. In general, it is based on this cash principle. It is recorded only when money comes into the bankbook. Cashism is intuitive and convenient, but these days when payment methods and flows are complex, there is a lot of room for omissions.

In whooing, it is recommended to write a little more thoroughly based on accrualism, but you can use it as a cash note as you like. Or you can just mix them both and record it as accrual, sometimes cash.