What is the Accrual View option?
The Accrual view in Farm Focus will record your revenue or expense items as at the invoice date (the date the event occurred) regardless of when the payment is received or made at the bank.
This method of reporting will recognize your income and expenses in the period they occur irrespective of whether it is on credit or in cash.
Why do we use the Accrual View option?
You can use the Accrual View to give a better indication of business profitability for a specific period. With income and expenses recorded on the date they occur and not their payment date, you can have a clear picture of your profit or loss for that period. This can have a significant impact on your reports when items fall across financial years or reporting periods.
You may purchase some fertiliser for the farm and agree on a deferred payment plan with the supplier. The items are purchased by the business on the order date and the farm has incurred that cost on the same date with the obligation to be paid in the future. Your Accrual view will include this cost to show how profitable you have been during that period.
How does Accural View differ from Payment Date?
The Payment Date view or Cash View will record your income and expenses as of the date the money was received or spent at the bank. Businesses like to use this cash view for certain tax purposes, and to keep tabs on cash flow levels.
NOTE: If you run a report using Accrual View mode, though it includes and excludes data based on the invoice/event date, the coded line will continue to display the transaction date.
Where can I use the Accrual View option in Farm Focus?
Click here to learn more about the Accrual view in the Working Plan. You can view this on the cashflow grid and also in the underlying worksheet information.
GST and bank account balances will be hidden while you are in Accrual View.
You can print, enter planned items, compare on line 2, and use your filter options in Accrual View.
Click on each of the reports to see how Accrual View is included
How do I make sure my Accrual View is accurate in Farm Focus?
The best way to make sure your Accrual View is accurate throughout Farm Focus is to use the invoice scanner. This will read your invoices and record the correct invoice or event date.
These invoices can be matched to a transaction, or remain unpaid in the Needs Action screen if the payment date hasn't yet occurred. You will need to make sure that the Unpaid Invoices are fully coded so that items are applied to the correct area. These unpaid invoices will be included when you apply the Accrual View to your Working Plan and Reports.
Click the links below to learn about other ways you can ensure the correct Accrual View: