Recognized Revenue and Cash Basis Reporting

what is recognized revenue and cash basis in reporting? recognized revenue is money a business records as earned because it has delivered the product or held the event cash basis reports show money coming in and going out only when it’s actually paid or received it doesn’t count anything that hasn’t been paid for yet recognized revenue reporting can be found under reports (next to your event) > revenue or reports (next to your event) > summary from here, you can select recognized revenue recognized revenue report this report shows when revenue is earned , not just when money is collected flex pass redemptions when a flex pass is used to redeem a ticket, the assigned redemption value is reported under flex redemptions for that event custom redemption values you’ll be able to manually set the value of each flex redemption price per event, giving you full control over how redemptions are valued for example, if a $10 ticket is worth $8 in the flex pass, you’ll set this up during the flex pass setup flat $ season passes this will show the recognized value of the individual tickets within a flat $ season pass the original flex pass purchase is not reported at the event level so, what is the result of all of this? you will see a more accurate view of revenue per event, even when tickets are redeemed with a pass cash basis report this report reflects when cash is actually received , regardless of when the event occurs flex pass redemptions shows $0 for redeemed tickets (since no new cash was collected at redemption) flex pass purchases reported in aggregate at the time of purchase, not tied to specific events so, what is the result of all of this? you will see a clear view of actual cash flow and deposits why does this matter? recognized revenue helps assess the full value of events, including redemptions cash basis supports cash flow tracking and reconciliation you can toggle between both views depending on your reporting needs section recognized revenue report cash basis report net revenue shows only revenue that has been earned shows all money received , regardless of when earned deferred revenue recognized recognizes redemptions of gift cards/flex passes as revenue ignores redemptions—shows when they were originally sold custom fees same if fees are earned and collected in same period same unless fees are paid at a different time absorbed fees shows fee value subtracted from earned revenue shows fee value subtracted from received cash refunds shows refunds applied to earned revenue shows actual cash refunded , regardless of timing sales tax shows tax on recognized revenue shows tax on cash received , regardless of service date total collected (incl tax) matches actual receipts matches actual receipts (no change here)