 zero accounting software accounts payable agent reports get ready to be an office hero with zero support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page we also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable so once again click the link below for a free month membership to our website and all the content on it here we are in our custom zero home page we set up in a prior presentation scrolling in a bit holding control down up on the scroll wheel currently at 175 percent zoom in opening the demo file but going to reset it first that will reset the data and open the demo we're going to do the setup process we do every time duplicating some tabs to put the major financial statement reports in right click in the tab up top to duplicate it right click in the duplicated tab to duplicate it again back to the tab in the middle we're going to go to the accounting drop down and bring the balance sheet into play here the big balance sheet tab to the right accounting drop down we now want the income statement or profit and loss report tab to the left in the date drop down we would like a custom date for 2022 and there it is update that report now when we're thinking about our reports these are the major two financial statement reports and then all other reports generally give more information about one or multiple line items in it we're now going to look at the accounts payable which has a similar related report as the accounts receivable the accounts payable representing us owing money to others to vendors to people that we bought goods and services from on account in essence and we can we have to give more information about it because this is just one number so we don't want just the information by date if I drill down on this number that's gonna give us the transactions that constructed the accounts payable by date the bills increasing it and then the receiving of the payment from I mean sorry the paying of the bills decreasing the payable going back to the balance sheet what we would like to see is a report breaking out by vendor who we owe the money to and more detail than that by how old it is that we owe the money to these vendors so let's go to the second the last tab right click on it and duplicate it again and open up our aging report to check it out accounting drop down reports we're gonna go into our aging reports down here payable and receivable aging age payable summary let's do that one and so there it is so it looks like the aged receivable summary but now we're talking about people we owe money to or companies that we owe money to let's hit the drop down up top let's customize the date range bring it on up to the 31st and okay so now we've got the same point in time the bottom line of the report and the total down here breaking out who we owe the money to should tie into what's on the balance sheet 10,000 291 84 tying out to what's on the balance sheet here 10,000 291 84 so let's just give a quick recap of when this report would be useful if I go back to my flow chart now we're up in the vendor cycle this means that we're paying for goods and services that we're gonna use within our business at the end of the cycle we expect money to be going out now if we do that and we just pay people in the most simplified type of way say when we just pay them electronically maybe and then we use bank feeds to just record the expenses as they become due as they decrease the checking account with like a check type form then we're using in essence a cashed-based type of system and we won't have any accounts payable account in that case because accounts payable is an accrual account however if we're receiving the bills entering the bills into the system that's gonna increase a payable account and then we'll have to track and manage when those payable accounts are due and then pay off the payable account now notice that small businesses oftentimes are might be on more of an accrual based method for the revenue side if they're in an industry that needs to invoice like a bookkeeping firm law firm but might be on a cashed based system for the the vendor side or the expenses side due to the fact they can just make electronic transfers either with credit cards or bank transfers in that instance and therefore don't have to manage the accounts payable but as the businesses get larger and larger the management strategy of trying to pay your bills as late as possible becomes more and more important in other words if you're gonna pay your utility bill either today or 15 days from now because it's not really due until 15 days from now they're not gonna penalize you if you pay them 15 days later doesn't matter if that's the only payment you're making but if you make thousands of payments that 15 days becomes more relevant and if you make very large transactions that 15 days becomes more relevant so you want to hold on to your money longer and so then you can have again full departments that are there managing the accounts payable trying to pay out the payables as late as possible in such a way that they can hold on the money as long as possible while still taking advantage of any kind of discounts they can get and whatnot from paying sooner that's the game generally but the general idea is that you won't have accounts payable unless you're doing an accrual based kind of method for it if you have the accounts payable then again you see just the amount that you owe to to vendors here but you generally would want to sort that now you might sort that in the system say by going to the business drop down and sorting your bills bills representing things that we entered into the system that we have not paid that we have not paid and go to the awaiting payment these bills then are the things that increase the accounts payable so you would think if you totaled up these bills it would tie out in essence to what's on the balance sheet for accounts payable we don't get a total here because that's not how it really works but generally in here this is where we would often go to manage the payment of the bills or we can go into the contacts drop down and the suppliers and now we're sorting same information but by who we owe to and we can go into a specific supplier if we have a specific supplier question however it's nice to see a nice formal report breaking out that same information by vendor who we owe the money to because you get the nice total down here which helps you to visualize what is actually happening how are these payables actually tied into the accounting system they're part of the they are the accounts payable account they tie into the accounts payable and then we can also sort by how outstanding the items are with our nice 30 60 90 and older kind of outstanding brackets which gives us a good visual of which which items are going to need to be paid and when so if I go back up top here you got the similar kind of kind of options you've got the due date so you could sort this by due date which is probably most common or the invoice date which in this case you might it might more formally be called the bill date notice that those terms are kind of interchangeable a bill and an invoice depending on which side of the table that you're on we're talking about accounts payable here so so we're talking about stuff that we bought from somebody oftentimes you know some people get a lot more strict with those terms but you have to understand that when you're in accounting software you're you're using terms a little bit differently than you would use in main parlance type of terms so a bill oftentimes people would say well that means that you entered something into the system that's going to increase accounts payable from a strict accounting software standpoint but in the broader standpoint you could bill someone else like you could that which we would call an invoice from an accounting standpoint but you could call it a bill you're billing someone so we have to use a terminology from a specific side of the table when we're thinking about our accounting transaction so you gotta gotta get your mind wrapped around that and then you've got your drop-downs here so again we could add more periods like we saw with the aging so maybe I want four periods of 30 you could change from 30 days to some other period week and month so I'll just add the four updated just so we can see the change so there we have it here and then you've got your column so you've got the aging contact contact account number contact group you can add the email for example outstanding tax you can add the phone if you wanted to so now you can kind of organize this if you wanted to print it out for someone so that they have the contact information and you could you could you could contact them and plead for an extension or something like that depending on what the case may be and then you've got the group by document type and your filter options that are similar to what we saw with the receivable side of things so the bottom line is accounts payable is only going to be on the account on your books when you enter bills if you're on an accrual system for the vendor side of things for the payment side of things it's only going to show you the total amount here which represents in essence the outstanding bills and the payables you want to break this information out not by date which you can get by drilling down on this data but rather by who you owe the money to and then you can break that further out by the aging report and then in practice when you're actually going in and paying off the amounts that you owe to these vendors you would be going into either the the vendors themselves here or going into the pay bills and items and the ones awaiting payment in that and we've seen that process in prior presentations