Taking Over an Existing System - A Financial Perspective
- This article is for center owners that have taken over an existing CoreBridge system from a prior owner as part of a Resale.
- If the new owner started with a brand new CoreBridge system this article does not apply.
- If the new owner intends to export their financial activity from CoreBridge to their accounting software, we highly recommend going through this process. If the new owner not will be liable for the prior owners activity that may have been left over after a resale, the new owner will want to do some cleanup so that financial activity from the prior owner doesn't end up in the new owner's accounting software. It is easier to clean up CoreBridge than it is to cleanup erroneous data in your accounting software.
- Even if you don't intend to export your financial data to your accounting software, we still recommend going through this process so that your system doesn't have any liabilities from the prior owner that end customers may expect the new owner to honor.
- If the Resale has already taken place, please follow this guide as soon as possible.
- If the Resale will be happening in the future, you should still review this guide then follow through once the Resale has taken place.
1: Cleanup Process
A) Review Reconciliations
- Before entering live transactions as the new owner, see if the prior owner has a performed a final CoreBridge reconciliation that captured their last activity.
- Accounting Module > Reconciliation
- In order to have the cleanest financial break possible between owners, there should be a reconciliation that includes any of the prior owner's activity and/or all of the prior owner's cleanup.
- If there is no final Reconciliation from the prior owner, we recommend completing one. The final reconciliation for the prior owner's activity should not contain any financial activity from the new owner. If it does contain financial activity from both the prior owner and the new owner, there will likely need to be some cleanup in the new owner's accounting software.
B) Accounts Receivable and Deposits
- Run the A/R report:
- Reports Module > Customers / Receivables > Accounts Receivable Aging > Detail by Customer
- Select Include Deposits and Credits from the "include" dropdown.
- Click View Report and let the report load.
Who is responsible for collecting payment on open invoices?
- If the new owner is responsible for collecting payment on existing invoices nothing needs to be done.
- If the prior owner is responsible for collecting payment on existing invoices, we recommend entering a fake payment to close the order. The prior owner should collect payment outside of CoreBridge.
Who is responsible for order deposits?
- If the new owner will be honoring deposits paid to the prior owner, nothing needs to be done.
- If the new owner will not be honoring deposits paid to the prior owner, we recommend entering a fake refund so that the new owner will collect payment once the order has been completed/delivered. The prior owner would need to provide the actual refund to the end customer.
C) In-Store Credit
- Run the In-Store Credit report
- Reports Module > Customers / Receivables > Customer In-Store Credit
Who is responsible for honoring existing credit?
- If the new owner is honoring credit provided by the prior owner, nothing needs to be done.
- If the new owner will not be honoring credit provided by the prior owner, the credit should be backed out from each individual customer account.
D) What happens after any cleanup is done?
- Perform a CoreBridge reconciliation to capture any cleanup work. The Reconciliation that is performed after that should only include financial activity belonging to the new owner.
2: Best Practices
Best practices for prior owner
- Perform a CoreBridge Reconciliation.
- Perform a final export to his/her accounting software.
- Print out any needed invoices or reports.
- Perform any last-minute cleanup such as completing orders, recording payments and refunds, refunding or revoking in-store credit.
- Perform a final Reconciliation to capture any cleanup work. This will help the new owner avoid commingled data in their accounting software.
- Finalize any outstanding activity outside of CoreBridge such as collecting open A/R, refunding deposits, etc.
Best practices for new owner
- Don't record payments or Complete orders until any cleanup work is done. (See section 1: Cleanup Process)
- Disable any user account associated with the prior owner. This helps prevent commingled financial data.
- Add new user accounts. If a prior user will be associated with the new owner, user permissions should be reviewed.
- Your accountant should have their own user account. At a minimum, give access to the Accounting Module and Reports Module. Once your accountant becomes familiar with CoreBridge, you may want to provide limited access to the Sales module for viewing customer settings, viewing invoices, and searching payments.
- Perform a CoreBridge Reconciliation at the end of each business day.
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