Jackrabbit uses cash accounting for the purpose of reporting (recognizing) revenue, while still allowing you to track your Accounts Receivable.
- Fees such as tuition fees, registration fees, etc. are posted to your family's accounts, but are not reported as revenue in Jackrabbit until those amounts are paid.
- Family account balances increase when fees are posted (debit transactions) and decrease when payments are received (credit transactions) or account credits are posted (credit transactions) .
- A listing of all family balances is easily created using one of Jackrabbit's Accounts Receivable reports.
Cash Accounting vs Accrual Accounting
In accounting, the two most common forms of recording financial transactions are using cash accounting or accrual accounting. The difference between the two approaches is all about timing.
Jackrabbit's Role in your Business Accounting
Jackrabbit is a class management and Accounts Receivable program. Expenses are not tracked in Jackrabbit, this is done in your accounting program, e.g. QuickBooks.
Using the financial reports offered in Jackrabbit, or the QuickBooks integration, your revenue must be entered into your accounting system to give you the full financial picture.
Adjustments may be necessary if you use accrual accounting outside of Jackrabbit.