Back office training for FocalPoint is divided into three general areas:

•Exporting or otherwise extracting financial data out of FocalPoint that can then be transferred to some outside accounting source, like accounting software, or your accountant.

•Accounts Receivable tasks, like creating statements, assessing finance charges, and yes, writing off those finance charges.

•Reporting for taxes, A/R balances, and other financial information

 

Accrual vs Cash Accounting

FocalPoint is, for the most part, based on accrual accounting principles. That is to say, FocalPoint recognizes revenue when an order is closed, regardless of whether the order was paid in full when it was closed or not. LIkewise, FocalPoint recognizes revenue when a work order is closed, and when front counter credit is created (so if you create a credit for an order you closed three months ago, you'll recognize the reduction in revenue on the day you create the credit).

 

The reasons for leaning towards accrual are many, but suffice to say, because you can potentially have money coming in days, weeks, or months prior a rental even begins, tracking revenue "after the dust settles" just makes more sense.

 

If you do not know which you are, you should probably ask your accountant. If you are faced with the decision to choose for the first time, you should also ask your accountant, although searching for "cash vs accrual accounting" in any web browser will probably be helpful.

 

There are a couple of areas in FocalPoint that can be used for cash basis accounting, however, where you can recognize revenue at the moment you receive money instead of when an order is closed. There is a separate Cash Basis section in the help file for cash basis accounting and reporting.