Flowrev is designed to be easy and intuitive to use. We recommend first time users watch the overview/demo video.
Additionally, prior to using Flowrev with each organization from your accounting system you can:
- Ensure that you have the credentials required to access your organisation in your accounting system. It will be needed to connect and authenticate Flowrev
Have a good Xero/QuickBooks setup in place. Ensure you have a well defined chart of accounts that meets your foreseeable reporting requirements and growth projections. Evaluate segment reporting requirements e.g. based upon Xero tracking or QuickBooks Department/Location or Class and implement these upfront too. While Flowrev will work with these implemented/changed at any time, having them well defined and in place prior to starting will make for the most streamlined ramp and ongoing - You'll need specific accounts in your chart of accounts, which you will map into Flowrev during initial setup per org.
These accounts, which may already be in your chart of accounts or may need to be created, are:- A current liability account for revenue deferrals - if you create a new account name it "Deferred Revenue" or the like. Best practice is to use a new account, which will then only have transactions journaled by Flowrev for deferred revenue. Multiple deferred revenue accounts are also supported.
- A revenue account general sales for recognition of invoice line amounts under specific settings (see this article). Multiple revenue accounts are supported, this one is simply a fallback used in absence of other overriding information.
- A current asset account for expense prepayments - best practice is to use a new account. Multiple prepayment accounts are supported.
- An expense account general expenses for recognition of bill line amounts (for details see this article). Multiple expense accounts are supported, this one is simply a fallback used in absence of other overriding information.
- A current liability account for sales tax / GST / VAT - only used in special circumstances (see this article)
- A current liability account for any rounding discrepancies
If you do not have these accounts, you can add them any time in your accounting system's chart of accounts, and use "Update selected" for accounts on the Flowrev "Org/Company -> Change/Update" page to pull them over. The process, however, is more streamlined if you create the accounts prior to first connect.
- Create Items (Xero or QuickBooks Product/Services or inventory items - even if quantity is not tracked). While the system will work without items, having and using them consistently with your invoicing will help automate your revenue and cost recognition processes and provide finer grained control.
- Review how your items and invoice/bill lines are mapped to nominal codes/accounts, and ensure items and invoice and bill lines are mapped to the correct type of account, which have account codes.
For cost and revenue recognition, Flowrev takes the existence of a bill or invoice in an active (so not draft etc.) status as confirmation that the initial requirements of recognition have been met. Flowrev typically does not load or process other transactions such cash basis transactions, or other accrual basis transactions not invoice or bill based.
Flowrev recommends you map items and invoice lines for which revenue recognition schedules are to be created to REVENUE accounts. And we recommend mapping bill lines to EXPENSE accounts for cost recognition.
For revenue, Flowrev also works when you map items or invoice lines to a CURRENT LIABILITY e.g. deferred revenue account - and this setting may be preferable if you do not know ahead of time i.e. on invoice date what the recognition schedule will be like. Barring such cases, follow the above recommendation.
For costs, Flowrev also works when you map items or bill lines to a CURRENT ASSET e.g. prepayments account - and this setting may be preferable if you do not know ahead of time i.e. on invoice date what the recognition schedule will be like. Barring such cases, follow the above recommendation.
That's it - you are now ready to authorize your organization with, and start using Flowrev.