Deciphering the Daily Financial Report


Deciphering the Daily Financial Report
(A.K.A. The Daily Activity Snapshot)
dfr15I’ll admit it, the Daily Financial Report is hard to understand and sometimes it makes mo sense at all.  So let’s try to demystify it by breaking it into small pieces.
Let’s first take the “Order Types” section.dfr05
This one is a fairly easy section to understand.  It probably needs no explanation except perhaps for the Dollar amounts.  The Dollar amounts in this section include everything.  Product,  discounts, delivery, relay and sales tax.  The average order amount is obtained by dividing the total amount by the number of orders.  So this average amount does not paint a true picture of how much your customers spend each time they place an order with you because it includes sales taxes, which you do not get to keep.

Now let’s look at the “Revenue Sources” section.dfr06

A “Cash” sale is any sale that does not have an ON ACCOUNT method of payment or is received from one of the wire services.
“House Charges” are any sales with an ON ACCOUNT method of payment and “Wire Services” is any orders received from one of the wire services.
The Dollar amounts in this section also include all charges, including sales tax.

Let’s now look at  the “Sales Tax – Liability vs Collected” section.dfr07

Here you’ll see a breakdown of the sales taken on that day into taxable sales and tax exempt sales.  Sales allowances coming from the A/R module are also reported here.
The Dollar amount reported here does not include any sales tax collected on the orders.  The sales tax collected is reported just below under the heading of “Collected”
The sales tax amount you are liable for is reported under the “Liability” column.  These 2 amounts  never match each other because of the rounding done when calculating the sales tax to be collected, but they should be fairly close to each other.
flowerSoft allows you to have up to 3 different tax rates mainly because Canadian shops had that many different rates at one time.  If you charge a different rate if you deliver to a different state, then enter that rate as either Rate B or Rate C.

The “Cash Receipts” section.

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The actual amounts for cash, checks and credit cards are reported here.  It should give you a pretty good estimate of what your bank deposit should be for the day.  Note that the credit card amount is the gross amount.  No deduction is made for the percentage you pay the credit card company.

The “A/R  Activity” section

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This section shows you how many payments were received that day and the amount of money received.  Please note that the amount does not include any sales or finance/re-billing charge allowance applied through the A/R module.
Credits and Debits issued through the A/R module are also shown here.
Please note that finance /re-billing charge allowances are not considered credits (although they really are) and are not included here.  They are included in the “Misc. Charges” section.

The “Methods of Payment section

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This section shows you the different methods of payment you used on your sales for the day.  The Dollar amount includes sales taxes collected.  The ON ACCOUNT and SPLIT methods of payment are shown but no amount is included.  The methods of payment used to pay for those orders are included (preceded by an asterisk) when the orders are paid for.

The “Credit/Debit Card Receipts” section

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This section shows you the amounts received as payment using the credit cards you accept.  In order to give you a better idea of how much you are really getting from your credit card sales, flowerSoft shows you a “Net Amount” which is obtained by multiplying the total receipts for each card by 3%. 

The incoming and outgoing orders section is pretty self-explanatory and all I’m going to add is that the net amount received and the commission earned are calculated using the entries made in the incoming and outgoing wire services database.

The “Source of Orders” section.

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This section shows you how your orders came in.  The amounts include the sales tax collected.

Finally, the “Misc. Charges” section shows you…

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Delivery, relay and finance/re-billing charges collected.  If a finance/re-billing charge was waived through the A/R module, that amount will be deducted from this section.

That concludes the demystification of the Daily Financial Report, also known as the Activity Snapshot.  Hopefully this post has helped you understand a little better how the numbers in this report are obtained and what the represent.

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