This article explains cash versus accrual accounting and shows you how to select your preferred method of reporting revenue in ROLLER reports.
Overview
The main difference when reporting revenue on a cash or accrual basis is the timing of when revenue is recognised for financial reporting.
| Accrual basis | Reports revenue when it is earned, not when payment for the sale is received. For example - a guest purchases a ticket for $100 on the 1st of July which expires on the 30th of July. If it was redeemed on the 14th of July then $100 revenue would be reported on that day. However if the ticket had not be redeemed by the 30th then it would expire and the $100 revenue would be reported on the 30th. |
| Cash basis | 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.
The accrual basis of accounting is considered to be the most accurate form of reporting revenue, and certain governments prohibit larger businesses or businesses with inventory from using cash basis accounting. Consult your financial advisor to determine the appropriate method of reporting revenue for your business.
Revenue recognition setting
ROLLER reports display data using the accrual method by default.
If you report revenue 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 or Accrual toggle as required.
- Click Save.
By enabling the cash accounting setting, the ROLLER platform:
- Adjusts the data displayed in reports, removing accrual data such as deferred revenue
- Removes Revenue metric from the Dashboard.