Cash Vs. Accrual: Why Won't My Cash Reports Match the Accrual Based Reports

Cash Based Reports

All "cash" based reports reflect transactions that occurred on a particular date, and the payments or refunds you received for those transactions on that date. These reports only concern themselves with the cash or payments that were made on the date range selected.

Here are a list of cash based reports.

Accrual Based Reports

Accrual based accounting reports are reflecting orders (POS and Online Store orders) that have an Order Date within the date range regardless if the order is pending, open, closed or quoted. For Events or Online Booked Events the report uses the Event execution date (aka Event start date) within the date range for the report. For example the Accrual report does not care anything about the cash or payments taken. This report only cares about what is invoiced on the order. So if you have $100 of Item A on an invoice for that date but you have no payments against the invoice, the Accrual report will show that you "earned" $100 in Item A but your Cash report would show no payments made. If you do not want items on an invoice to be counted towards your sales/revenue you must either remove those items or cancel the order. Cancelled orders are reported in a different section of the Accrual report.

For this reason, the cash and accrual reports will never match and if by some odd reason they do match it is just a fluke as they are considered two completely different accounting principles.

Example: A $25 event takes place on February 1st, 2013. You receive a $5 deposit on January 1st 2013 for the event. The balance of $20 is paid on the event day, February 1st, 2013. You also received payment on January 1st 2013 for a $6 Laser Tag open play admission. The $6 Laser Tag admission will appear in both the Closeout Report and Accrual based reports for January 1st.

The $5 event deposit will appear in the Jan 1st Closeout Report, but not appear on the Accrual based report for January 1st because it's associated to the start date of an event that has not yet taken place. Your February 1st, 2013 Accrual based report will reflect the total invoice amount of $25 for the event.

Most often, the differences you will see between a cash and accrual report are new event deposits (liability). Please reference our Liability Analysis Report to get an accurate representation of these deposits. Click here for more information on the Liability Report: Liability Analysis Report

Here are a list of accrual based reports.

QUICKBOOKS

You are probably here because you are trying to put your sales data into an accounting program (aka QuickBooks). For information on using our reports, in BOTH accrual and cash accounting methods please see this KB article: How To Use Party Center Software with Quickbooks

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