Understanding Accrual-Based Sales Reporting

Overview

Sales reports in BloomNation use accrual-based accounting, a standard financial practice that records sales at the time an order is placed, rather than when it is delivered or paid.

This method helps florists:

• Accurately measure business performance
• Align with industry-standard accounting practices
• Track revenue consistently, regardless of when payment is collected

This article explains how accrual reporting works, how it impacts your reports, and what to use if you're tracking payments or reconciling house accounts.

What Is Accrual-Based Accounting?

In accrual-based accounting, revenue is recognized when it is earned, not when the cash is received.

In the context of your BloomNation sales reports:

• Orders appear in reports based on the order date
• Payment status (e.g., paid, pending, house account) does not affect when a sale is recorded
• This approach provides a more accurate picture of business activity, regardless of how or when a customer pays

This differs from cash-based accounting, where revenue is only recorded when money changes hands.

Why We Use Accrual Accounting

We use accrual-based accounting because:

• It reflects the moment your business accepts the order and commits to fulfilling it
• It aligns with Generally Accepted Accounting Principles (GAAP)
• It ensures sales performance reporting is consistent and complete, even when different payment methods are used

Note: This does not mean the payment has been received, only that the order was placed and will be fulfilled.

How This Affects House Account Orders

A common question we hear is, "Why do unpaid house account orders show up in my sales report?"

Here’s why:

• When a customer places an order using a house account, that order is counted as a sale on the order date, even if payment has not yet been received.
• These orders will appear in your Sales Report right away.

To reconcile house account payments, use the House Account Aging Report, which provides a real-time view of balances due.

What's included in the House Account Aging Report:

• Total balances due for your current house accounts
• New customers and updates (refreshed approximately every hour)

You can access this report from the Reports section of your dashboard.

Tracking Actual Deposits

If you’re looking to track when you actually received funds for an order (regardless of how it was paid), you can find this information in your Payouts section within the Finances tab of your dashboard.

Still Have Questions?

We’re here to help.

• Email: support@bloomnation.com
• Phone: (210) 405-5050