I use both methods as they apply to my situation. Grass clippings end up in either an active pile or dried in a holding area. I cut long grass with a scythe and will pile that in the holding area(concrete mesh scavenged from construction sites and formed in a circle). Dried stuff ends up as mulch on potatoes, so I don't have to hill. The active pile is sifted through an old Massey-Harris screen once its cured and sifted compost is scattered on top of sown seeds to prevent crusting. After plants come up, I use a hand cultivator to work the compost into the surrounding soil. I have had exceptional results by using collected rain water to water this top layer. The compost absorbs moisture and I find I have to water less as the summer progresses. I live in Alberta and have access to a bunch of old plastic oil drums that I spot throughout the garden for composting collected weeds and thinnings. Everything gets a year to cure, before I spread. Big chunks, I just separate and run through again the next winter. I bank on 92 frost free days, so have to be creative in my planting schedule. Works for me.