It's a-ccrual world
LOOKING at my monthly Internet and handphone bills one day many years ago, I was stumped when recording them down. For which month should I record my bill expenditure?
A typical bill has a date that the bill was made, say July 20. I might receive the bill a few days later.
But the actual payment through Giro - the outward transfer of cash from my bank account - takes place two weeks later, in August.
To add to the confusion, the bill could be for services used in a previous month, say from June 14 to July 13.
"Should I record my handphone bill for the month when the money to pay it goes out of my bank account, or for the month when I receive the bill?" I asked an accountant friend.
Her reply was unequivocal. "Record it in the month you …
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