ℹ️ Digitail uses open invoice accounting rather than balance forward accounting. This article explains what that means, why it matters, and how it affects your clinic’s sales reports, client statements, and other financial documents.
Key Difference: Open Invoice vs. Balance Forward
Accounting Method | How It Works | Impact on Client Statements | Impact on Reports |
Open Invoice Accounting (Digitail) | Each invoice remains 'open' until fully paid. Payments are matched/allocated directly to specific invoices. | Statements list all paid and unpaid invoices individually, with dates, amounts, and running balances. | Reports show invoice-level detail, making it easier to track outstanding invoices and reconcile payments. |
Balance Forward Accounting | All transactions are rolled into a single client balance carried forward month-to-month. Payments reduce the overall balance, not specific invoices. | Statements show one cumulative balance, without linking payments to individual invoices. | Reports focus on total balances but lack invoice-level clarity. |
How This Affects Client Statements
Transparency: Clients see each sale with the allocated payment listed, with a running balance after each transaction.
Outstanding Items: Unpaid invoices remain visible until settled, so pet parents can clearly identify what is due.
Ageing Summary: Reports group outstanding invoices by ageing periods (0–30, 31–60 days, etc.), helping your team follow up on overdue accounts.
💡 Tip: This approach reduces confusion for clients, since payments are always tied to the exact invoice they relate to.
How This Affects Sales & Financial Reports
Sales Report: Revenue is reported per invoice, with total paid and total due.
Accounts Receivable Reports: Each unpaid invoice can be tracked individually using the balance tracking feature, simplifying reconciliation and follow-up.
Cash Flow Tracking: Payments are matched to invoices, so you can see exactly which sales have been settled and which remain outstanding.
‼️ Because Digitail uses open invoice accounting, your reports will always reflect invoice-level accuracy rather than cumulative balances.
Why Digitail Uses Open Invoice Accounting
Provides greater transparency for both clinics and pet parents.
Simplifies audit trails by linking payments directly to invoices.
Supports detailed reporting for sales, ageing, and reconciliation workflows.
This ensures your clinic’s financial documents are clear, accurate, and aligned with best practices in veterinary practice management.
FAQs & Tips
Q: Can I switch to balance forward accounting in Digitail?
No — Digitail is designed around open invoice accounting for clarity and compliance.
Q: How do I explain this to clients?
You can let them know that each invoice remains visible until paid, so their statements show exactly what is owed and when.
Q: Will this affect automated statements?
Yes — automated statements will always list invoices individually, rather than rolling balances forward.
👉 For more on generating client statements, see How to Generate a Client Statement.