At bookkeep we are obsessed with sales accounting and reporting and we have been doing it a really long time.
So let's discuss a perfectly balanced sales summary that will properly account for your sales day and post to your accounting system.
A sales summary consists of sales, liabilities and tenders.
The important formula we use is:
Sales + Liabilities = Tenders
Sales: This consists of your gross sales before discounts, discounts on those gross sales and refunded products and services.
Liabilities: Simply put a liability is an amount you owe someone. So sales tax is what you owe to sales tax authorities. Tips are amounts you owe to your staff that you collected on credit cards usually. And the sale of a gift card is now a liability you owe to a customer who exchanged funds for the right to make a purchase in the future.
Tenders: A tender is an amount of funds to pay for sales and increases in liabilities. There are many types of tenders. Cash tender is cash that comes into your register, credit card tender is the total amount collected by charging credit cards. Other tender types could be PayPal and gift cards as a tender. Sometimes you will have other tender types for alternative payment methods which all should be tracked separately.
Gift Cards can be confusing. People think about a gift card being
"Sold" to a customer but that is not the case. A gift card is really
exchanged for funds. So if you "sell" a $20 gift card in exchange for
$20 in cash you have not increased your sales bucket you have instead
increased your liabilities bucket by $20 and increased your tenders by