Financial reporting and reconciliation

Petsoft tracks every dollar, but tracking is not the same as understanding. If you run a report that says you made twelve thousand dollars last month, but your bank statement shows eleven thousand two hundred, you need to know where the other eight hundred went. This guide explains the gap.

Two ways to count money

Petsoft has two main financial reports, and they measure different things.

Sales Revenue Report

This report uses accrual accounting. It records income when the service happens, not when the cash hits your account. A boarding stay that runs from March 28 to April 3 will show zero revenue in March and the full amount in April, because that is when the pet checked out.

This report is what most accountants want to see at year end. It matches revenue to the period when you actually did the work.

Credit Card Revenue Report

This report uses cash accounting. It records income when the payment is processed. If a customer pays a deposit in March for a stay in April, that money shows up in March. If they pay the balance at checkout in April, the rest shows up in April.

This report is what you use to reconcile your bank deposits. It matches the money that actually moved into your account.

Why the numbers never match

If you run both reports for the same month, they will almost always show different totals. That is normal. Here is why:

Deposits paid early A customer books a July stay in June and pays a two hundred dollar deposit. The Credit Card Revenue report counts that in June. The Sales Revenue report counts it in July. Same money, different months.

Unpaid invoices A stay checks out on April 30 but the customer says they will pay next week. The Sales Revenue report counts it in April. The Credit Card Revenue report does not count it at all until the payment arrives in May.

Refunds A customer cancels in April and you refund their March deposit. The Credit Card Revenue report shows a negative entry in April. The Sales Revenue report never counted the deposit in the first place because the stay never happened.

Fee deductions Your payment processor takes a small percentage of every card transaction. The Credit Card Revenue report shows the gross amount the customer paid. Your bank statement shows the net amount after fees. The difference is usually two to three percent.

Matching deposits to reports

To reconcile your bank account, start with the Credit Card Revenue report. Run it for the same date range as your bank statement. The total should be close to your deposits, minus fees.

If it is off by a few dollars, check for:

• Refunds that posted on a different date than the report shows
• Tips that were added after the original transaction
• Partial voids where only one line item was reversed

If it is off by a lot, check for unposted invoices. A stay that checked out but was never invoiced will not show up in either report until someone posts it.

Understanding fee deductions

Every card transaction has a fee. The rate depends on your merchant agreement and the type of card. Debit cards usually cost less than business credit cards. Rewards cards cost more because the bank is funding the rewards from your fees.

You can see your effective rate by dividing total fees by total volume for the month. If your rate is higher than you expected, contact your payment processor. Sometimes they can reprice your account if your volume has grown.

Petsoft does not control the fee rate. The fee is deducted by your processor before the money reaches your bank. If you need a breakdown of fees by transaction, your processor's portal will have more detail than Petsoft.

Month-end close workflow

Here is a simple workflow most facilities use at the end of each month:

1. Run the Sales Revenue report for the month. Save it as your official revenue number.
2. Run the Credit Card Revenue report for the same month. This is your deposit check.
3. Compare the Credit Card Revenue total to your bank statement. Adjust for fees.
4. Check the Unposted Invoices report. Post anything that should have been posted.
5. Review refunds. Make sure they are categorized correctly for tax purposes.

If you do this every month, your year-end accounting will be easy. If you wait until December to sort out January, you will hate yourself.

Exporting to accounting software

Both reports export to CSV and Excel. Most accountants can import CSV into QuickBooks, Xero, or Sage. If your accountant wants a specific format, ask them for a sample file. Petsoft's CSV exports are standard, but accounting software can be picky about column names.

The Account Totals export is a summarized version that rolls up all services into a single line per day. This is useful if your accountant does not need itemized detail.

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Sales Revenue vs Credit Card Revenue

Aspect	Sales Revenue Report	Credit Card Revenue Report
Accounting method	Accrual	Cash
When revenue is recorded	When service is rendered	When payment is processed
Includes deposits paid early?	No	Yes
Includes unpaid invoices?	Yes	No
Best used for	Year-end accounting, profitability	Bank reconciliation, deposit matching
Export formats	CSV, Excel	CSV, Excel

Why numbers differ: quick reference

Scenario	Sales Revenue	Credit Card Revenue
Deposit paid in June for July stay	Counted in July	Counted in June
Unpaid invoice at month end	Counted	Not counted
Refund issued after cancellation	Not counted (stay never happened)	Negative entry in refund month
Processor fees deducted	Not shown	Gross amount shown; fees deducted by bank

Month-end close flowchart