🎯Accrual Based Accounting

Gazebo lets you choose your accounting method, Cash or Accrual, and switch between them as needed. After you link your line items to their accounts, you can easily report on them using our new Journal Entry reports.

Cash Basis (Default Setting): An Accounting method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made

Accrual Basis: An Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

To change settings to Accrual, navigate to Setup > Other Financial Settings > Journal Entry Report Settings. Select the "accrual" radio button.
Set your Revenue Recognition date to be either the "Booking Start Date" or the "Booking End Date".
Note: While you can change back and forth between Cash and Accrual accounting methods, this will impact how the journal entries are booked and also which types of accounts need to be specified for a line item.

Journal Entry Reporting

The Journal Entry Report settings work in combination, adjusting to the options selected.

Navigate to Reports > Standard Reports. There are three Journal Entry Report options:

Journal Entry Summary by Day Report

This report shows journal entries for each day there are transactions matching the filter criteria. Entries are summarized by account, and adjusts journal entries when transactions are changed.

Journal Entry Summary by Entire Date Range Report

This report shows journal entries in a date range that match filter criteria. Entries are summarized by account, and adjusts journal entries when transactions are changed.

Journal Entry Detail Report

This report shows individual journal entries for each transaction matching the filter criteria. Entries are summarized by account, and adjusts journal entries when transactions are changed.

Assign Account Types

For Journal Entries to appear for the accounts you use, you will assign all of your line items, taxes and processing fees to appropriate accounts.

Account Types Available to use for assignment:

Accounts Receivable
Bank (this is equivalent to Cash)

Revenue Account Types:

Income
Other Income

Liability Account Types:

Current Liabilities
Other Current Liabilities

Assignments: Create revenue accounts for the line items you invoice. If you are using an accrual method of accounting, create liability accounts as well for deferred revenue.

Note: If you want to separate taxes collected in separate liability accounts, then create these as well. The system presents a Taxes Payable account for tax line items by default, but you may choose others that you create if you prefer.

Navigate to Setup > Financial > Accounts and select the Add Account button to create each of the Revenue and Liability accounts you need for journal entries.
If you wish to change the Default Account Number associated with Cash and Accounts Receivable, select the Pencil icon to change it or to add/change the description for these accounts.
Assign revenue accounts (and liability accounts if you are using an Accrual accounting method) to the line items you invoice. Navigate to Setup > Financial > Line Items
Select the pencil icon to update an existing line item (or select the Add Line Item button to add a new line item).
Associate the line item with the appropriate accounts. (If you are using Cash accounting, you will not see an option to assign a liability account to the line item.)
Assign a "Tax Liability Account" to each of your tax line items if you do not want to use the Taxes Payable line item default. Navigate to Setup > Financial > Taxes
Select the pencil Icon to update an existing Tax line item (or select the Add Line Item button to add a new Tax line item).
Associate the Tax line item with the appropriate account. (Taxes Payable is assigned by default.)
If you pass through payment processing charges for online payments, associate a revenue account with your ACH or Credit Card processing options. Navigate to Setup > Financial > Other Financial Settings
In the Bank Account Settings and Credit Card Settings area of the page, select a Processing Fee account for each method where you are applying fees.