Questions
- What is funds received in ROLLER?
- What is revenue in ROLLER?
- What is gross revenue?
- What is net revenue?
Solution
The primary distinction between funds received and revenue lies in timing and accounting principles.
In ROLLER, revenue is recognized when it's earned (ie the booking takes place), following accrual accounting, regardless of when payment is received. In contrast, funds received is recorded when actual money is physically received, in line with cash accounting principles. Both metrics can be important for a complete understanding of your business performance.
| Term | Definition | Why is this important? |
|---|---|---|
| Funds received | The actual amount of money received or collected from all payment types in ROLLER for a particular date or period. | This is a key financial metric used to manage cash inflows, ensuring the ability to cover expenses, invest in growth, and meet financial obligations. |
| Revenue (recognition) | The total recognized revenue for a particular date or period. Revenue is recognized in ROLLER when it is earned, typically when guests attend a booking and redeem their tickets at POS, or when the booking expires and it is no longer valid. |
Recognized revenue provides a more accurate assessment of a business's performance beyond cash transactions. Recognized revenue allows business owners and managers to evaluate the business's overall performance and different product offerings more precisely. |
| Net revenue | Net revenue is total revenue recognized after taxes have been deducted. Gross revenue - Taxes = Net revenue |
Net revenue is important because it shows the actual earnings of a business. This gives a clearer picture of a company's financial health than gross revenue, which only shows total income. Net revenue helps in assessing profitability, guiding financial decisions and attracting investors. |