Financial reporting and reconciliation

Petsoft records every dollar. But a record is not the same as an explanation. You run a report. It shows twelve thousand dollars for last month. Your bank statement shows eleven thousand two hundred dollars. You must find where the other eight hundred dollars went. This guide explains the gap.

Two ways to count money

Petsoft has two main financial reports. Each report measures a different amount.

Sales Revenue Report

This report uses accrual accounting. It adds up paid invoices by the invoice date, not by the date the payment reaches your bank. For example, a boarding stay runs from March 28 to April 3. The report usually shows this stay in the month of the invoice date. The invoice date is usually the checkout date. Note: This report includes only paid invoices. An unpaid invoice does not appear on this report until it is paid. This is true even after the stay ends.

Most accountants use this report at year end. It matches revenue to the correct period for each invoice.

Credit Card Revenue Report

This report uses cash accounting. It records income on the date Petsoft processes the payment or refund. It includes only credit card payments. For example, a customer pays a deposit in March for a stay in April. The report counts that money in March. If the customer pays the balance at checkout in April, the report counts the rest in April. The report's prepayment rules move deposits for daycare, boarding, bath, and nail services. This lets each deposit match the correct service.

Use this report to reconcile your bank deposits. It matches the money that moved into your account.

Petsoft does not label either report "accrual" or "cash". These words are only short names for the different date columns behind each report. No setting switches a report between the two modes. They are simply two different reports.

Why the numbers usually differ

If you run both reports for the same month, the totals are almost always different. 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 money in June. The Sales Revenue report counts it in July. The reports show the same money in different months.

Unpaid invoices A stay checks out on April 30, but the customer says they will pay next week. Neither report counts it in April. The Sales Revenue report includes only paid invoices. It does not show this revenue until the invoice is paid. The Credit Card Revenue report will not count it 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, 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 full amount the customer paid. Your bank statement shows the net amount, the amount left 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 posted on a different date than the report shows
• Tips added after the original transaction
• Partial voids that reverse only one line item

If it is off by a lot, check for invoices that have not been paid yet. A stay may check out without an invoice or payment. This stay will not appear on the Sales Revenue report until it is invoiced and paid. It will not appear on the Credit Card Revenue report until the payment is taken.

The Invoice Revenue Reconciliation report

You do not have to find each reason by hand. Instead, run the Invoice Revenue Reconciliation report from Reports. This report runs the Sales Revenue report and the Credit Card Revenue report automatically, for the same facility and date range. It lists every source of the difference between them in one place.

The report has three sections:

Payment Distribution — Payment Distribution shows every payment method other than credit card, for example cash, check, or gift certificate. It totals the amount collected on invoices in the period, by method. This section does not list credit card payments, because the Credit Card Revenue total below covers them.

Other Adjustments — Other Adjustments shows the dollar amount for each mismatch:

Adjustment	What it captures
Refunded Card Payment On Voided Invoice	A card payment that Petsoft refunded on an invoice that was later voided. Voided invoices do not count toward Sales Revenue. But the card refund still appears in Credit Card Revenue.
Prepayment Relocations	A non-card payment made and refunded on the same day. Another payment on the same invoice fully repays it. This adds to the Payment Distribution total, but it is not money that pays the invoice.
Invoices Made Outside Date Range	A credit card payment inside your date range, for an invoice dated outside it. This is the deposit-in-June-for-a-July-stay case explained earlier.
Card Payments Made Outside Date Range	This is the reverse: an invoice dated inside your range that a customer paid by card outside it.

The report shows only adjustments with an amount other than zero. If a category is empty, that type of mismatch did not happen in your date range.

Report Totals — Report Totals shows the actual totals from Sales Revenue, shown as a positive number, and Credit Card Revenue, shown as a negative number. If the report accounts for every mismatch, Payment Distribution, Other Adjustments, and Report Totals should net to zero.

Run this report whenever your Sales Revenue and Credit Card Revenue totals do not match at month end. Petsoft designed this report to explain that gap. It does more than give you another number to check by hand.

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. If the two reports do not match and you cannot see why, run the Invoice Revenue Reconciliation report for the same month. It lists each adjustment instead of making you search for it.
5. Look for stays that checked out with unpaid invoices. Pay and post these invoices.
6. Review refunds. Make sure you categorize them correctly for tax purposes.

If you do this every month, your year-end accounting will be easy.

Exporting to accounting software

You can export both reports as an Excel file or a PDF file. You can also view them in your browser. Excel is usually the better choice for an accountant. It opens directly in the tools accountants already use. Accountants can reformat or re-sort the data as needed. PDF is best when you need a clean, printable copy. If your accountant wants a specific format, ask for a sample file. Accounting software is often strict about column names.

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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	By invoice date (paid invoices only)	By payment/refund date
Includes deposits paid early?	No	Yes
Includes unpaid invoices?	No (paid invoices only)	No
Best used for	Year-end accounting, profitability	Bank reconciliation, deposit matching
Export formats	Browser, Excel, PDF	Browser, Excel, PDF

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	Not counted until paid	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 processor