We recommend setting up the following accounts on your balance sheet:

Each of these accounts should be at zero at month end, unless you can identify specific items causing a remaining balance. Examples of reasons a balance may exist in each account are as follows:

Dash Customer AR - if you have collected a partial payment from a customer. The balance remaining in this account should match your Customer AR Report.

Dash NSF Checks - if you have recorded an NSF check in your accounting system but have not yet recorded it in the system, or vice versa. Either way, you should be able to identify the specific check(s) making up the remaining balance.

Dash Refund Checks - refund(s) entered in your accounting system that have not yet been entered in the system. You should be able to identify the specific check(s) making up this balance.

Clearing accounts are a simple way to enter different cash transactions alongside the related sales detail. The table below illustrates how these work:

You may wonder why you wouldn't simply enter Cash and Revenue directly. The main reason is that multiple types of transactions affect your cash balance, including:

By using a clearing account, you only need to reference this one account in your accounting system rather than managing detailed revenue line items for each cash transaction. When these are entered in the system, all revenue details are tracked and summarized in the GL Report.

You can also enter your revenue detail once a month rather than daily.

At the end of the month, run a GL Report for that month. Remember to choose to ignore team credits when running the GL Report if you do not want this level of detail on your financial statements.

Then make the following entry:

Enter as many revenue types as you want to track in your accounting system. You can enter as detailed as Snickers, Mounds, Skittles, etc., but we don't recommend that level of detail. The system will give you the sales for any product item you create.

The total of this report should match your Sales Report totals for the month, unless you use the Partial Payment function. The only difference in the accounting will be credit card sales that have not settled by midnight of the last day of the month. Those sales will post to your bank based on the settlement time of your merchant service. If you don't use the Customer Credit function, your Dash A/R account balance should only carry a debit balance for credit card sales not yet settled.