This article explains the difference between cash and accrual accounting and guides you on how to choose the right method for reporting revenue in ROLLER.
When do you record revenue?
In ROLLER, revenue is recorded against bookings, each having its own booking date, which could be in the future or on the current day.
The main difference when reporting revenue on a cash or accrual basis is the timing of when revenue is recognised for your business's financial reporting.
|Accrual||Accrual basis accounting records revenue when it is earned, not when payment for the sale is received.
In ROLLER, this timing typically relates to when guests attend the booking and redeem their tickets, or tickets expire and are no longer valid.
|A guest purchases a ticket for $100 on the 1st of July, with a expiry date on the 30th of July.
If the guest redeems the ticket on the 14th of July, then $100 of revenue would be reported on that day.
If the ticket isn't redeemed by the 30th, the $100 revenue is reported on the 30th.
|Cash||Cash basis accounting records revenue when money is received.
This refers to when the funds are received in ROLLER regardless of the booking date.
|A guest purchases a ticket for $100 on the 1st of July with an expiry date on the 30th of July.
The $100 revenue is reported on the 1st July regardless of when the redemption or expiry occurs.
Reporting revenue on a cash basis does not record deferred revenue, while accrual basis does. Deferred revenue records funds received for bookings which have been paid, but the tickets for the bookings have not yet been redeemed or expired.
Switch from accrual to cash accounting in ROLLER
ROLLER reports default to using the accrual method. However, you can still monitor sales figures and cash flow with the accrual method enabled.
If you choose to report revenue solely using cash basis, you can filter out accrual data from reports:
- From Venue Manager, go to Settings > Account > Venue Settings.
- Select Unlock to make changes.
- Scroll down to the Reporting section heading.
- Select the Cash toggle.
- Select Save.
Enabling cash accounting in ROLLER:
- Adjusts the data displayed in reports, removing accrual data such as deferred revenue
- Removes the Revenue metric from the Dashboard.