---
title: Recognized Revenue and Cash Basis Reporting
slug: recognized-revenue-and-cash-basis-reporting
docTags: 
createdAt: 2025-06-23T16:21:23.945Z
---

# 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.

:::hint{type="info"}
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.

:::hint{type="info"}
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.

:::hint{type="info"}
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)                     |