Purpose
This article outlines the differences between Simplified Accounting Solutions (SAS) and Standard Aspire Accounting Solutions(SAAS). It also talks about which Accounting solution would be right for you based on your tier of Aspire subscription.
Simplified Accounting Solutions (SAS)
Available to All Tiers
Invoiced Revenue
Most common option, 90% of clients starting with Aspire use this method.
No inventory amount on the balance sheet after the EOM JE’s are entered in Accounting.
No Work in Progress amount on the balance sheet.
Revenue is recognized on the P&L when your customer is invoiced.
Purchases are expensed in the month of the vendor’s Invoice Date.
Inventory is not managed on the balance sheet but it can be tracked in Aspire.
End of Month Revenue and Expense journal entries into the accounting system.
📑 To learn more about SAS, click here.
Standard Aspire Accounting Solution (SAAS)
Available to Corporate & Enterprise Tiers
📌Note: Many clients begin with SAS and switch to SAAS after they gain confidence managing SAS.
Invoiced Revenue
The more common option for SAAS.
Inventory amount on the balance sheet after the EOM Journal Entries are entered in Accounting.
No Work in Progress amount on the balance sheet.
Revenue is recognized on the P&L when the customer is invoiced.
Purchases are expensed in the month they are allocated to a Work Ticket.
Inventory must be managed on the balance sheet and reconciled.
End of Month Revenue, Expense, and Inventory journal entries into the accounting system.
Earned Revenue
Most advanced option.
Inventory amount on the balance sheet after the EOM JE’s are entered in Accounting.
Work in Progress amount on the balance sheet.
Revenue is recognized on the P&L as the work is performed, when materials are received to a work ticket, or when materials are allocated from inventory, regardless of when invoiced.
Purchases are expensed in the month they are allocated to a Work Ticket.
Inventory must be managed on the balance sheet and reconciled.
End of Month Revenue, Expense, and Inventory journal entries into the accounting system.
Characteristics of Both SAS and SAAS
Purchase receipts from Aspire will sync over to the Accounting system as a bill to pay.
Customer payments will be batched into deposits in Aspire and the deposit will sync over to the Accounting system.
Production details will live in Aspire.
The accounting system will be a summary of the production detail recorded from Aspire.