The bookkeeping process for Tax/Financial Accounting is best done 'in arrears" from transactions that have posted in bank accounts.

  • The bookkeeping process is NOT best done "in real time", for tracking cash flow and outstanding checks.

  • Those are in fact "managerial accounting" needs that some individuals have which should be handled "outside of" your Tax/Financial Bookkeeping process.

  • The work to manage cash flow in context of then getting the same transactions from the bank for your Tax/Financial accounting may seem a bit redundant, but there are exceptional reasons for a bit of redundancy from time to time, with the most relevant being the different between transaction dates and post dates (which will be explained later if you don't already understand this comment).