Accounting Reports
Understand your accounting reports in plain language. Learn what each number represents and what affects it.
How to Use This Documentation
This documentation is organized by transaction type (rows in the report). Each page explains:
- What the transaction represents
- Which accounting categories it affects (columns)
- Exactly what logic determines the numbers you see
- Real-world examples with dollar amounts
Understanding the Report Structure
What are Rows?
Each row represents a specific business event or transaction type:
- When you create an invoice → Subscriptions Revenue or eCommerce Revenue
- When a customer pays → Payments Received
- When you issue a refund → Refunds Made
- When you recognize earned revenue → Recognized Revenue
What are Columns?
Each column represents an accounting category that tracks different aspects of your financials:
| Column | What It Tracks | Type |
|---|---|---|
| Cash - Offline Payments | Checks, wire transfers, cash | Asset |
| Cash - Online Payments | Credit cards, PayPal, Stripe | Asset |
| Customer Balance | Prepaid credits, account balance | Asset/Liability |
| Account Receivable | Money customers owe (invoiced) | Asset |
| Deferred Revenue | Service not yet delivered | Liability |
| Taxes | Sales tax collected | Liability |
| Recognized Revenue | Revenue earned and recognized | Income |
How They Work Together
When a transaction occurs (row), it affects multiple accounting categories (columns). For example:
When you create a $110 subscription invoice ($100 + $10 tax):
- Account Receivable: +$110 (customer owes this)
- Deferred Revenue: -$100 (service obligation)
- Taxes: -$10 (tax liability)
- Balance: $110 - $100 - $10 = $0 ✓
This ensures your books balance - every transaction has equal and opposite effects.
Report Timeframe
All reports show activity for a specific month and currency:
- Transactions appear based on their creation date, not payment date
- Each currency has a separate report (USD, EUR, CAD, etc.)
- Opening and closing balances connect months together
Documentation Sections
Transactions that create new revenue obligations when you bill customers.
Transaction Types:
- Subscriptions Revenue - Recurring subscription invoices
- eCommerce Revenue - One-time product purchases (coming soon)
Affects: Account Receivable, Deferred Revenue, Taxes
📈 Revenue Recognition
Moving deferred revenue to earned revenue as you deliver service:
Recognized Revenue - Time
(Coming soon) Revenue recognized based on time elapsed for time-based subscriptions.
Affects: Deferred Revenue, Recognized Revenue
Recognized Revenue - Shipments
(Coming soon) Revenue recognized based on issues/shipments delivered.
Affects: Deferred Revenue, Recognized Revenue
Recognized Revenue - eCommerce
(Coming soon) Revenue recognized immediately upon order shipment.
Affects: Deferred Revenue, Recognized Revenue
💰 Cash Movement
Money flowing in and out:
Payments Received
(Coming soon) Customer payments (online and offline) applied to invoices.
Affects: Cash, Customer Balance, Account Receivable
Refunds Made
(Coming soon) Money returned to customers for canceled or refunded transactions.
Affects: Cash, Customer Balance, Deferred Revenue, Recognized Revenue
🔄 Adjustments
Corrections, write-offs, and balance applications:
Applied Balance
(Coming soon) Customer account balance applied to pay invoices.
Affects: Customer Balance, Account Receivable
Uncollectible Invoices
(Coming soon) Invoices written off as bad debt (uncollectible).
Affects: Account Receivable, Deferred Revenue, Taxes, Recognized Revenue
Voided Invoices
(Coming soon) Invoices canceled before payment.
Affects: Account Receivable, Deferred Revenue, Taxes
Credit Notes
(Coming soon) Credits issued to customers.
Affects: Customer Balance, Deferred Revenue, Taxes, Recognized Revenue
🤝 Agency Commission
Special handling for agency-type subscriptions:
Agency Commission Revenue
(Coming soon) Agency subscription revenue (commission portion).
Affects: Deferred Revenue, Cash, Taxes
Agency Recognized Revenue
(Coming soon) Agency commission recognized over time.
Affects: Deferred Revenue, Recognized Revenue
Quick Reference Table
| Row | When It Appears | Primary Columns Affected |
|---|---|---|
| Subscriptions Revenue | Invoice created | AR (+), DR (-), Taxes (-) |
| eCommerce Revenue | Order invoice created | AR (+), DR (-), Taxes (-) |
| Recognized Revenue - Time | Monthly recognition | DR (+), RR (-) |
| Recognized Revenue - Shipments | Issue shipped | DR (+), RR (-) |
| Recognized Revenue - eCommerce | Order fulfilled | DR (+), RR (-) |
| Payments Received | Customer pays | Cash (+), AR (-) |
| Applied Balance | Balance used | CB (-), AR (-) |
| Refunds Made | Refund issued | Cash (-), DR (+) |
| Uncollectible Invoices | Marked uncollectible | AR (-), DR (+) |
| Voided Invoices | Invoice voided | AR (-), DR (+) |
| Credit Notes | Credit issued | CB (+), DR (+) |
Legend:
- AR = Account Receivable
- DR = Deferred Revenue
- RR = Recognized Revenue
- CB = Customer Balance
- (+) = Increases (makes more positive or less negative)
- (-) = Decreases (makes more negative or less positive)
Common Questions
Q: Why do some numbers appear negative?
A: In accounting, different account types have different "natural" signs:
- Assets (Cash, Account Receivable): Positive is good (you have more)
- Liabilities (Deferred Revenue, Taxes): Negative is normal (you owe it)
- Income (Recognized Revenue): Negative represents revenue earned
Q: How do I find a specific transaction?
A: Each row type has a download icon (if you have permissions) that exports all transactions included in that row for the month.
Q: Why don't the numbers match my bank account?
A: Accounting reports use accrual accounting (when invoices are created), not cash accounting (when money moves). The "Cash" columns show actual money movement.
Q: Can I see previous months?
A: Yes, use the month selector at the top of the accounting report page. Opening and closing balances connect months together.
Q: What if I see $0 for everything?
A: This is normal if you had no activity in that month, or if you're viewing a currency you don't use. Check the currency selector at the top.
Getting Started
New to accounting reports? Start here:
- Explore Revenue Streams - where invoices and billing begin
- Read about Subscriptions Revenue - the most common transaction type
- Understand how the three columns (AR, DR, Taxes) work together
- Then explore other sections as needed
Looking for something specific?
- Use the documentation sections above to jump to the right topic
- Check the Quick Reference Table for a high-level overview
- Navigate through section pages to find detailed transaction types
Updated about 3 hours ago