Q. What is the income statement?
The Income Statement allows you to view your actual and accrued revenues, expenses, and taxes collected.
To view your Income Statement:
- go to ACCOUNTING > INCOME STATEMENT
- select your start date and end date
- click submit
The information for revenues, expenses, and taxes will appear in tables and charts.
The income statement can be used to understand your cash flow, revenue streams, and reporting taxes to the government.
Q. What is actual and accrued revenue?
Revenue colleced from services rendered can be described in two ways:
- actual revenue: revenue that comes into your business via payments from clients
- accrued revenue: revenue that comes into your business via saved or missed sessions.
Depending on your payment scheme (pay in advance, point of sale, pay later), your actual revenue may differ from your accrued revenue. The most important aspect of these revenues is to realize accrued revenue may not be secured. Accrued revenue is a good way to understand how much revenue your business may be generating at a given time. Only actual revenue represents revenue that you have collected.
Q. What is the difference between hourly and salary wages?
Within the income statement, there are two categories for salary, they include:
- Hourly Wages: wages that are paid out to practitioners based on saved or missed sessions. The practitioner is paid for their time based on the start and end time of the session. Practitioners are not paid for any other incidental work that may have taken place before or after the session.
- Salary Wages: these wages are paid to practitioners or staff based on information taken from timesheets. Timesheets are available for the Enterprise Plan only. Employees who use timesheets can be paid hourly salary or annual salary.
Since hourly wages comes from tracked sessions, and salary wages comes from timesheets, the two wage categories are given their own unique category within the expenses table.
Q. What does the location column mean for taxes?
Within the Taxes Collected table, for the income statement, yiou can see the LOCATION and AMOUNT.
The LOCATION refers to the State / Province where the client resides. If you provide a service that is taxable, the collected taxes is categorized by State / Province. Most government institutions requires taxes to be collected at this regional level.