Welcome to ServiceTitan’s Commercial Playbook—an aggregation of best practices from across the industry, written purposely for your Commercial business. In this playbook, you’ll learn all the key tips and tricks (what we call “best practices”) needed to take your business to the next level.
SECTION 3 OF 3
End of Month Closeout - Accounting
1. Report Name: Accounts Receivable (Summary)
Report Description: ST- AR Reconciliation report
How to create: Default Report
Link to Sample Report: Sample Accounts Receivable (Summary)
Purpose/Importance: The report shows the accounts receivable exported to make sure it reconciles to QB AR amount reflected in the balance sheet. Customer is using ST for operational purposes (who owes the money) and using the accounting system to make sure this is properly being reflected in the balance sheet. Everything that hits AR needs to go through ST.
2. Report Name: Month-End: Pending Invoices Audit
Report Description: Verify all ST invoices for the month have been batched and exported to QB
How to create: Accounting--> Invoices. Filter to show only the invoice status as "pending."
Link to Sample Report: Example Month End Close_ Pending Invoices Audit
Purpose/Importance: The financials are kept in QB, so make sure your balance sheet and P&L are complete. If the invoices are not exported to QB, sales and AR will be understated. If there is sales tax liability attached to the invoice, then the liability will also be understated.
3. Report Name: Month-End: Payments Reconciliation
Report Description: Verify all payments have been applied to ServiceTitan invoices for the month and they have been batched and posted to QuickBooks
How to create: Accounting--> All payments. Filter to only show the payment status as "pending."
Link to Sample Report: Example Month-End_ Payments Reconciliation
Purpose/Importance: If payments are not exported to QB, the balance sheet will not be complete. In the case of a refund (negative payment), the undeposited funds or bank account will be overstated or the refund liability payable (if set up to that account) will be understated. This can cause issues because the company will not be aware that they have to cut the check for the customer.
4. Report Name: Month-End Invoices with No Tasks or Materials
Report Description: Invoices with no tasks attached to them
How to create: Accounting--> Invoices. Filter to only show the empty invoice as "TRUE."
Link to Sample Report: Example Month-End_ Invoices with no Tasks or Materials
Purpose/Importance: This can be a report that those auditing the invoices can print. It would be unusual for an invoice to not have any task or material attached to it. This would be a report that the client can use to ensure the technicians did not forget to add a task or material. Sometimes it can be normal not to have any tasks or materials attached to an invoice depending on the job (Recall,warranty, etc.). Take this report and filter out the Job Types and Business Units that would not be expected to have any tasks or materials attached.
Others - Bad Debt/Deferred Revenue
5. Report Name: Accounts Receivable- Summary
Report Description: Bad Debt Expense
How to Create: Default Report
Link to Sample Report: Example Accounts Receivable- Summary/Bad Debt
Purpose/Importance: It is important that the AR list is complete for cash flow planning purposes and so that the financial statements are accurate. Without writing off bad debt, customers are overstating AR (ultimately overstating cash) and sales income. This also helps management review bad debt metrics and helps management establish a plan to prevent more bad debt in the future (i.e collecting earlier, requiring deposits on jobs > certain $ amount, etc).
6. Report Name: Deferred Revenue
Report Description: Deferred Revenue
How to Create: Default Report
Link to Sample Report: Example Deferred Revenue
Purpose/Importance: Use the "active" membership status report to tie the DR balance in ST to DR balance in QB. Use the "cancelled/expired" membership status report to verify that there is no activity occurring. The deferred revenue column should be 0 because for "cancelled/ expired" memberships, any deferred revenue should be recognized at the date of cancellation/ expiration.
Loom video on how to utilize the Deferred Revenue reporting in ST https://www.loom.com/share/17fd8099b449450cb3cf8dc5f714a6d4