Continuing the discussion from Tax Report on Cash Basis:
As well as reporting Tax on a cash basis, in some countries small business are allowed to report income on a cash basis.
I think a possible design will be to use “waiting” income/expense accounts to create the initial move of the invoice and create at the period closing like for the taxes, a move proportionally to the paid amount registered on the invoice. This move will be between the “waiting” accounts to the “real” ones.
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But how does it work for things like the asset depreciation? The cash is already spent when you purchase so how should it be reported?
In the case of assets, the tax obligation is generating when you actually pay for the purchase invoice no mater how you deprecate your asset. In fact the speaking from the accounting point of view the tax and the depreciation are two different events happening at different times and you don’t mix each other.
NOTE: Just speaking about Mexico, not sure about other countries.