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Apples & Oranges in Daycare Accounting

Have you ever tried to compare two child care accounting reports and been puzzled why the numbers don’t always match up? Long time readers may recall the article Apples, Oranges and Accounts Receivable, which had a similar theme.

For today’s take on comparing apples to oranges, we’re pleased to welcome guest blogger, Steve Suarez, from the Technical Support team at Procare Software®.

Deposit Reports and the Charge Credit Summary

Many people try to tie their Deposit Reports to their Charge Credit Summary reports as a check to see that all funds have been deposited correctly.

Although it’s possible the payment totals could match up on these two reports, often they do not. That’s not an indication that anything is wrong, it’s just that apples (Deposit Reports) don’t necessarily look like oranges (Charge Credit Summaries).

The main problem with this comparison occurs when you receive a daily stream of payments, but do not deposit them via your Deposit Report, until a later date. For example, if you record a payment for $100 on November 30th, and deposit it on December 1st, your reports will have different totals. The Charge Credit Summary for November will include the $100, while your November Deposit Reports will not, since the item was not actually deposited until December.

However, if all payments are consistently deposited on the day of payment, this comparison will usually work. There is one other possible complication, that could be caused by inter period voids.  If you void a November payment and use a December void date, the Charge Credit Summary would reflect the negative “payment” in the total for December charges. Once again, the Charge Credit Summary would not match the Deposit Report for the same period.

In summary, my recommendation is that you shouldn’t expect apples to equal oranges. Deposit Reports should only be used to confirm actual money deposited to your bank account, not compared against other reports.

That’s all folks!

– Steve


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