 zero accounting software reconciliation reports get ready to be an office hero with zero here we are in our custom zero homepage we set up in a prior presentation scrolling in by holding control up on the scroll wheel currently at 175 percent zoom in open in the demo but doing so with the reset which will reset the data and open the demo at the same time we're gonna duplicate a few tabs as we do every time to put our major financial statement reports in right-click in the tab up top to duplicate it right-click in the duplicate a tab to duplicate it going back to the middle tab accounting drop down we want the balance sheet report as that's thinking tab to the right accounting drop-down income statement report back to the balance sheet we're gonna then change the date and bring it on up to 2022 and the end of it update that's the setup process we've been doing every time these being the major two financial statement reports support accounting instruction by clicking the link below 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now the bank reconciliation reports are a little bit different in nature to other types of reports because other reports when are going to be created basically if I go back to the first tab when we enter the data in terms of bills the forms in terms of invoices that creates financial transactions that constructs both the income statement the balance sheet and the subsidiary reports generally given more information about them the bank reconciliation is a little bit different in that it's usually going to be or is a reconciling item it's tying out what we did on our side to what happened on the banks side of things so we'll get into that process in a lot more detail when we get into the bank reconciliation section but just to touch on it basically as a report the idea is that we want to match what we have on our side to what the bank has it's one of the hugest internal controls that we can have now note that when we think about that you probably think first well that's very important for cash to make sure that our cash is a reconciled because cash is going to be quite important we don't want to lose our money or anything like that we want to be able to track it but note that it's far more than that to to make sure that we reconcile because as we can see if I go back to the balance sheet and we open up the cash account which is a liability because it's overdrawn that's why it's down here otherwise it would be an asset and then I'm going to go into that notice that there's more account types are going through cash than any other kind of account meaning if you if you look at accounts receivable transaction detail there's only invoices increasing and then that we've received payments decrease in the accounts receivable that's the same for all other accounts other than cash in that there's far more types of transactions that typically go through them the cash account has a whole lot more because it's kind of like the lifeblood of the company it's involved in every cycle in other words if I looked at the cycles here we've been breaking out the cycles in terms of the expense cycle purchases cycle AP cycle and then the revenue cycle or accounts receivable cycle the employee e-cycle cash is clearly involved interwoven in all of those cycles so if we can double check the cash transactions that are involved in every cycle it doesn't give us a complete check on everything that happens in the accounting system but it's one of the biggest internal controls we can have the one internal control that we have is that we're using the zero software allowing us to be in balance meaning that the assets equal the liabilities plus the equity and the software in essence forces that to happen that provides a great level of confidence much more so than doing the books by hand and just having them kind of not tying out in terms of assets liabilities and equities and then second to that is really the bank reconciliation so if you're not reconciling the bank then you have a much lower kind of verification that your that your numbers not just cash but all of the transactions all of your accounts are accurate and reconcilations are something that both small businesses and large business to do now the other thing just just consider with the bank reconciliation is that if you have the bank feeds on you might think that you don't need to do a bank reconciliation so if I go back to my flowchart if you wait for example on the revenue side till something clears the bank and then you record it into the system well then you're using the bank in order to construct your books so it's still important to do a bank reconciliation but it will be far easier to do because you've constructed your books from the banks therefore a bank reconciliation will basically be done by just constructing the books in of themselves and then just double check in that you haven't doubled entered anything or that you haven't entered anything or not entered something from the bank but if you have a full service accounting system even if the bank feeds are within it then you're still going to have some reconciliation generally because in that system for example you would be entering the invoices or the received payments yourselves and then checking them to the bank now the act of checking them to the bank matching them to the bank may still be helped with the bank feeds but you're still going to have to actually go to the bank reconciliation and double and you know do the actual reconciliation process and the number on your books will most likely not match what's on the banks because you didn't construct your books from the banks you constructed them separately tied them out to the bank and there's usually timing differences even if you have electronic transfers if you have a lot of them there could be a difference on your side to the banks side if you're doing a full service accounting system and that's what the reconciliation will do it'll tie up the banks books to to your books and if you can get that out perfectly then you have a pretty good internal control that everything is in the system correctly so their bank reconciliation looks something like this you got the balance in the zero software so that should tie out to what's on the balance sheet so again you can kind of think of it as a check on expanding on a component of the balance sheet like many reports but again it's a little bit different for the bank reconciliation because it's an internal control and then we've got the plus the outstanding payments less the outstanding receipts those are usually the reconciling items and then here we've got all this unreconciled statement lines because we need to do the reconciliation process I believe is what is the issue here but then it's going to tie out to the statement balance which should tie out to what's on the bank statement and that's going to be the general concept we'll get into bank reconciliation more and actually construct a mock bank reconciliation in the practice part of the course or another section or another course that's when we get into that specifically hopefully so let's go back down and into the reports and let's just take a look at some of the other reports in that section if I scroll down we've got the reconciliation so we've got the let's look at this one we've got the bank summary so if I go into the bank summary and I and I take this for the year let's go for the year January January through December and it gives us a nice little summary down below opening balance cash received cash payments and the closing balance so that's kind of nice you might be able to constructs like some of these reports by using filtering options from the balance sheet transaction type of reports if you want to detail on the cash for example you might go into like your checking account and seeing if you could if you could filter it like by account so if I went to the filtering options down here I can I can filter it by account type the and then oftentimes you might look at like the source down here which kind of labels the forms and so you can you could even you might be able to filter by the items that are the money in and the money out so that's another way that you can filter your your cash transactions which is one of the types of accounts that you might want to for various reasons go into and look at the increases and the decreases and run different reports on it but they've got this kind of nice little summary report here let's go back and check out some other ones in our accounting drop-down in the reports and go back on down to the reconcile let's let's take a look at the cash valuation customer report now I'll right click I'm gonna open it in a new tab I'm gonna right click and open link in a new tab so that's another kind of little tool we can use here to so I don't have to scroll back down every time and open it up so there's this one and it gives us a summary down here so I changed it to December 31st where it has what is the zero bank statement balance user defined zero bank statement opening balance plus all imported bank statement transactions so when you start thinking about the reconciliation process then within the system you're gonna have to when you if you could basically tie everything out if you check everything off to the bank then those are gonna be your reconciled items when we're thinking about the you know the reconciled balances versus those that are unreconciled bank step statement transactions how well do bank statement transactions reconcile to accounting transactions so the bank statement receipts not reconcile to accounting transactions total statement periods not reconcile to accounting transactions count of all bank statement transactions not reconciled so they give you kind of some nice information that might might help you out to determine how clean the books are in terms of bank reconciliation because remember if I'm if I'm looking this end up from an accountant standpoint and someone gives me their books and says you know if do you have any faith in these books being accurate one the fact that they're using accounting software like zero gives me confidence number two is are they reconciling if they're not my confidence level is going to go way down so these might give you some information on you know on the reconciliation components of them and if you're taking on like a new company file and trying to figure out what's going on that might be a useful tool in that case for example so reconciliation reports that's I'm going to right-click and open this one in a new link and this is another report that you don't see often times in a lot of different kinds of accounting software like a quick book so let's explore around this one a bit you got the drop-down up here trial balance age receivable age payable saving accounts reconciliation checking and so on so we'll keep it on the trial balance for now I'm going to change the date bringing it up to 2022 let's say 2022 and then update and then you've got your trial balance which is kind of interesting the way it's laid out here because usually you would think it would be the balance sheet on top of the income statement but they got the income statement on top of the balance sheet type of accounts here so that's kind of interesting and and and then they've got the activity debits and credits and then the year to date so remember the trial balance in general is basically all of the accounts that are used to construct the balance sheet and the income statement but you don't have all the subtotals involved on the trial balance we can be a useful tool to be using so then these activities is kind of I'm going to go into this activity to look at the detail here and scroll down so it's giving us the information from December 1st through December 31st so it's giving us the months type of activity I'm going to go back so so I choose I chose here not a range but one date as of December 31st and then if I go into this activity it's giving me the activity for the last month and then this stuff is the year to date activity which you would expect then this to tie out to what's on the income statement because these are temporary accounts so that 30,623.86 is going to tie out to the the true the income statement 30,623.86 so that makes sense you would expect that for like the advertising would be a debit of the 10 four so that looks good and then you've got I believe the month activity over here and then the balance sheet is assets liabilities and equities so these are the permanent accounts so the 917263 should tie out to what's on the balance sheet so let's go back on to the balance sheet and scroll down it's thinking it's thinking still so that looks right so that makes sense and then if I go back on over this is the activity now the activity is just for the month that looks like so if I go into this activity and look at the detail it's giving us the activity it's got November or just December activity so it gives us the months activity and then we could expand the range in that activity here if we so choose and so that is the the assets same with the liabilities and then the retained earnings so interesting reconciliation report we have some other kind of an aged receivable report which looks kind of like a normal kind of receivable but the current balance November to October September and older so similar to a normal receivable aging report for the most part here although you might be able to do some more drilling down on the numbers here let's go to a drop-down payable savings checking sales tax fixed asset general ledger the general journal report let's take a look at the journal report let's go from January 2022 to December 2022 and update so then we got the computer equipment office equipment so these look like the the items that are they have been entered with possibly not just a form but a journal entry in other words normally we enter transactions by hitting the drop down and we enter using a form and that enters the journal entry in terms of debits and credits accounts affected but you might if you don't have a form to enter enter directly just a journal entry with the debits and credits directly and possibly this will help you to kind of sort that around so those are some of the reconciliation reports we'll continue with more reports next time