This article explains cash versus accrual accounting and shows you how to select your preferred method of reporting revenue for ROLLER reports.
What's the difference?
The main difference when reporting revenue on a cash or accrual basis is the timing of when revenue is recognised for financial reporting. When do you record revenue or expenses?
Accrual basis accounting records revenue when it is earned, not when payment for the sale is received.
However, if the ticket had not been redeemed by the 30th, then it would expire and the $100 revenue would be reported on the 30th.
Cash basis accounting records revenue when money is received.
For example, a guest purchases a ticket for $100 on the 1st of July which expires on the 30th of July. The $100 revenue is reported on the 1st July regardless of when the redemption or expiry occurs.
Therefore, reporting revenue on a cash basis does not record deferred revenue, while accrual basis does.
Set up how you want to record revenue in ROLLER
ROLLER reports display data using the accrual method by default. But that doesn't mean you still can't keep tabs on your cash flow with the accrual method enabled.
However, if you do report revenue only using the cash basis, you can filter out accrual data from reports as follows:
- From Venue Manager, go to Settings > Account > Venue Settings.
- Click Unlock to make changes.
- Scroll down to the Reporting section heading.
- Select the Cash toggle.
- Click Save.
By enabling the cash accounting setting, ROLLER:
- Adjusts the data displayed in reports, removing accrual data such as deferred revenue
- Removes the Revenue metric from the Dashboard.