Accounting
Pelcro Accounting
Get a clear overview of your business's financial health with the Pelcro Accounting Dashboard. Track key financial metrics, transactions, ledger accounts, and generate detailed reports to support informed decision-making.
Available for Professional & Enterprise Plans
Key Features
- Dashboard Overview: Visual summaries of balance sheet, profit & loss, and transaction categories.
- Ledger Accounts: Segregated views of commonly used financial data points (Payments received, Customer Balance, Accounts Receivable, Revenue recognition) which align with generally accepted accounting principles (GAAP).
- Transaction Categories: Granular view of transactions affecting each Ledger (Subscription Revenue, Payments, Refunds, and more.)
- Customizable Reporting: Select specific reporting periods and currencies.
- Detailed Exports: Download transaction data for integration with external accounting software.
Dashboard
Accessing Dashboard
On your Dashboard, hover over your left navigation menu. Select "Accounting".
Selecting Reporting Period
The period selector allows you to select the month for which you would like to view financial information.
Selecting Reporting Currency
If your product/plan offerings are provided in multiple currencies, the accounting dashboard will automatically break down your financial information by currency. You can use the currency selector to view financial information relating to each of your offerings.
Layout
- Each individual column represents a financial ledger account, a subset of your account's financial activity.
- Each individual row represents a specific type of system transaction. Transactions are either debit or credit.
Ledgers & Ledger Accounts
Ledger accounts provide a structured and organized views of your account's financial activity across monthly accounting periods. Each ledger account represents a specific aspect of a business's finances (assets, liabilities, expenses, and revenue)
Ledger accounts are the cornerstone of a company's accounting system. By meticulously tracking financial transactions within these accounts, businesses can generate reliable financial reports that are crucial for decision-making, reporting to stakeholders, and ensuring a clear overview of their financial well-being.
How Ledger Accounts Work
- Double-Entry Bookkeeping: Ledger accounts use a double-entry system – every transaction impacts at least two accounts, with a debit in one account and an equal credit in another.
- Tracking Changes: Transactions are recorded in each ledger account, showing increases and decreases in the account's balance.
- The Foundation of Financial Statements: The closing balances of ledger accounts are used to populate essential financial statements.
- Each ledger account has:
- Opening balance: The amount of money in a ledger account at the beginning of the accounting period. It's usually the same as the closing balance from the previous period.
- Closing balance: The amount of money remaining in a ledger account at the end of an accounting period, after all transactions (debits and credits) have been recorded. This balance then becomes the opening balance for the next accounting period.
- Total: The resulting figure of adding the debit transactions and subtracting credit transactions.
Balance Sheet Ledger Accounts
Our balance sheet ledger is broken down to 6 ledger accounts:
- Offline Cash: Records offline payments (cash, checks, wire transfers)
- Online Cash: Records online payments (credit/debit cards)
- Customer Balance: Tracks customer account balance credits/debits from prepayments or refunds.
- Accounts Receivable: Outstanding invoices owed by customers.
- Deferred Revenue: Revenue not yet recognized due to time- or shipment-based models.
- Taxes: Applicable taxes on goods/services.
Profit & Loss Ledger (P&L) Accounts
Our P&L ledger has 1 ledger account:
- Recognized Revenue: Revenue earned for goods/services provided, based on your chosen recognition model.
Transactions
Transactions are recorded in each ledger account, showing increases and decreases in the account's balance. This maintains an accurate, accessible record of the company's financial activity. Every transaction impacts at least two accounts, with a debit in one account and an equal credit in another.
- Debit transaction: Debits increase asset ledger accounts and decrease liability/equity ledger accounts.
- Credit transaction: Credits decrease asset ledger accounts and increase liability/equity ledger accounts.
System transactions are broken down to:
- Revenue Transactions
- Subscription Revenue: Total invoice amounts for new/renewed subscriptions & memberships.
- eCommerce Revenue: Total invoice amounts for new eCommerce orders.
- Recognized Revenue - Time: Portion of subscription revenue recognized over time (down to the number of seconds elapsed).
- Recognized Revenue - Shipments: Portion of subscription revenue recognized as individual shipments are approved & fulfilled.
- Recognized Revenue - eCommerce: Portion of order revenue recognized as individual orders are fulfilled.
- Cash Flow Transactions
- Payments: Incoming payments for invoices or added to customer balances.
- Applied Balance: Customer balance used to pay invoices.
- Refunds: Payments returned to customers.
- Credit Notes: Invoice adjustments (e.g., cancellations).
- Other Transactions
- Uncollectible Invoices: Bad debt write-offs.
- Voided Invoices: Erroneous invoice write-offs.
- Agency Commissions: Revenue commissions for agencies.
Linking Ledger Accounts and Transactions
The section below breaks down debit and credit transactions for each ledger account. Each Ledger account corresponding total is a result of adding the debit transactions and subtracting credit transactions.
Cash - Offline Payments
| Debit Transactions | Credit Transactions |
|---|---|
| Payments Received: Paying an invoice using an offline payment method → Payment Amount | Refunds Made: Refunding invoice payments using an offline refund method → Refund Amount |
| Payments Received: Adding a payment to the customer's account balance using an offline payment method → Payment Amount | Refunds Made: Adjusting customer balance to an offline refund method → Refund Amount |
Notes
- Pending offline refunds will not reflect under offline cash until the refund has been processed.
Cash - Online Payments
| Debit Transactions | Credit Transactions |
|---|---|
| Payments Received: Paying an invoice using an online payment method → Payment Amount | Refunds Made: Refunding invoice payments using an online refund method → Refund Amount |
| Payments Received: Adding a Renewal prepayment to the customer's account balance using an online payment method → Payment Amount |
Customer Balance
| Debit Transactions | Credit Transactions |
|---|---|
| Refunds Made: Adjusting customer balance to an offline refund method → Refund Amount | Payments Received: Adding a payment to the customer's account balance using an offline payment method → Payment Amount |
| Applied Balance: Paying an invoice using customer balance → Payment Amount | Payments Received: Adding a Renewal prepayment to the customer's account balance using an online payment method → Payment Amount |
| Credit Notes: Refunding invoice payments to customer balance → Credit Note Amount |
Accounts Receivable
| Debit Transactions | Credit Transactions |
|---|---|
| Subscriptions Revenue: Generating an invoice for subscriptions & memberships. → Invoice Total | Payments Received: Paying an invoice using an online payment method → Payment Amount |
| eCommerce Revenue: Generating an invoice for eCommerce orders. → Invoice Total | Payments Received: Paying an invoice using an offline payment method → Payment Amount |
| Applied Balance: Paying an invoice using customer balance → Payment Amount | |
| Uncollectible invoices: Marking invoices as uncollectible → Invoice Total | |
| Voided invoices: Marking invoices as void → Invoice Total |
Deferred Revenue
| Debit Transactions | Credit Transactions |
|---|---|
| Recognized Revenue - Time: Passage of time → #Seconds elapsed | Subscriptions Revenue: Generating an invoice for subscriptions & memberships . → Invoice Subtotal |
| Recognized Revenue - Shipments: Fulfilling shipments → #Shipments fulfilled * Shipment unit price | eCommerce Revenue: Generating an invoice for eCommerce orders . → Invoice Subtotal |
| Recognized Revenue - eCommerce: Fulfilling orders → Order Subtotal | |
| Uncollectible invoices: Marking invoices as uncollectible → Deferred Invoice Subtotal proportionate with consumed% | |
| Voided invoices: Marking invoices as void → Deferred Invoice Subtotal proportionate with consumed% | |
| Credit Notes: Refunding invoice payments to customer balance → Deferred Credit note amount proportionate with consumed% |
Taxes
| Debit Transactions | Credit Transactions |
|---|---|
| Uncollectible invoices: Marking invoices as uncollectible → Invoice Tax Amount proportionate with consumed% | Subscriptions Revenue: Generating an invoice for subscriptions & memberships . → Invoice Tax Amount |
| Voided invoices: Marking invoices as void → Invoice Tax Amount proportionate with consumed% | eCommerce Revenue: Generating an invoice for eCommerce orders . → Invoice Tax Amount |
| Credit Notes: Refunding invoice payments to customer balance → Credit note Tax amount proportionate with consumed% |
Recognized Revenue
| Debit Transactions | Credit Transactions |
|---|---|
| Uncollectible invoices: Marking invoices as uncollectible → Recognized Invoice Subtotal proportionate with consumed% | Recognized Revenue - Time: Passage of time → #Seconds elapsed |
| Voided invoices: Marking invoices as void → Recognized Invoice Subtotal proportionate with consumed% | Recognized Revenue - Shipments: Fulfilling shipments → #Shipments fulfilled * Shipment unit price |
| Credit Notes: Refunding invoice payments to customer balance → Recognized Credit note amount proportionate with consumed% | Recognized Revenue - eCommerce: Fulfilling orders → Order Subtotal |
| Credit Notes: Refunding invoice payments using an online refund method → Recognized Credit note amount proportionate with consumed% | |
| Credit Notes: Refunding invoice payments using an offline refund method → Recognized Credit note amount proportionate with consumed% |
Notes
- Subscription cancellations will immediately stop time-based revenue recognition, and recognize all remaining deferred revenue
Ledger Accounts Reconciliation
Ledger account reconciliation is a key accounting process that ensures the accuracy and completeness of a company's financial records. It involves comparing the balance of an individual ledger account with an independent source of data to verify that they match, and if necessary, making the necessary adjustments on journal entries to ensure the ledger account accurately reflects the true balance.
Considerations:
- Frequency: Reconciliations should be performed regularly (monthly, quarterly) to catch errors quickly.
- Tick and Tie: A thorough reconciliation involves 'ticking' (marking as checked) and 'tying' (confirming balances agree) items in the statement to the internal records.
- Adjusting Entries: Any discrepancies uncovered usually require adjusting journal entries in the ledger exports to ensure accuracy.
| Ledger Account | Recommended Reconciliation |
|---|---|
| Cash - Offline Payments | - Internal Reconciliation against payments export. Leverage available filters on the payments export: (Dates within accounting period month, Offline payment types, and/or Offline payment categories (e.g. Check, Wire, etc.). - External Reconciliation against bank account statements to identify any discrepancies caused by timing differences, bank fees, or errors. |
| Cash - Online Payments | - Internal Reconciliation against payments export. Leverage available filters on the payments export: (Dates within accounting period month, Online payment types, and/or Online payment categories (e.g. Card, Apple Pay, etc.). - External Reconciliation against payment gateway transactions to identify any discrepancies caused by timing differences, gateway fees, or errors. |
| Customer Balance | - Internal Reconciliation against customer balance export. Leverage available filters on the customer balance export: (Dates within accounting period month, Transaction types, and Transaction amounts). - External Reconciliation against bank account statements and/or payment gateway transactions to identify any discrepancies caused by timing differences, fees, or errors. |
| Accounts Receivable | |
| Deferred Revenue | - Internal Reconciliation of Deferred revenue export against invoices export , credit notes export Leverage available filters on each export: (Dates within accounting period month, Invoice date, due date, payment date, subtotal, tax amounts, and status). |
| Taxes | - Internal Reconciliation against tax export . Leverage available filters on the tax export: (Dates within accounting period month). - External Reconciliation against bank account statements and/or tax vendor/service provider reports to identify any discrepancies caused by fees, or errors. |
| Recognized Revenue | - Internal Reconciliation of Deferred revenue export against invoices export , credit notes export Leverage available filters on each export: (Dates within accounting period month, Invoice date, due date, payment date, subtotal, tax amounts, and status). |
Exports
Exporting Transaction Details
Details for all different transaction totals are available to export. The detailed export will help show you a granular breakdown of individual transactions contributing to its corresponding transaction category total, along with useful data points for each transaction. These exports are useful for your financial operations reporting, and can even be imported into any accounting or bookkeeping software which you may be using for your business (e.g. Xero, Quickbooks, etc.)
To generate a detailed export, click on the download icon next to the transaction category of your choice. Once you do that, an email will be sent to you with a downloadable link through which you can download the report.
You may wait a few minutes for an export email due to processing time. If you haven't received it after 15 minutes, contact support for help.
Finally, you can also download the total export which combines data from all relevant ledgers into a single file, eliminating the need to manually download and review 10 separate files.
Exporting Ledger Account Details
Details for a subset of Ledger Account totals are available to export. The detailed export will help show you a granular breakdown of individual transactions contributing to its corresponding Ledger account total, along with useful data points for each transaction. These exports are useful for your financial operations reporting, and can even be imported into any accounting or bookkeeping software which you may be using for your business (e.g. Xero, Quickbooks, etc.)
Available Ledger Account Exports:
- Accounts Receivable
- Deferred Revenue
The ALPHA Accounts Receivable and Deferred Revenue export buttons at the top of the page export data from the beginning of your accounting phase up to the chosen month. To download monthly reports, use the buttons located under the totals column for AR and DR, which allow you to download the monthly reports for Accounts Receivable and Deferred Revenue.
FAQs
I need financial reports which are different in layout and structure, Are there available custom accounting reports?
- Absolutely, Pelcro offers professional report customization services to help businesses make informed financial decisions. These reports are tailored to the specific needs of each business, and provide detailed insights into their financial performance. For more details, please contact your dedicated Pelcro account manager.
Updated 5 months ago