 Zero accounting software 2023 deposits from cash clearing account get ready because it's time to become an accountant hero with zero 2023 here we are in our custom zero homepage going into the new company file we set up in a prior presentation that being get great good 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 guitars we're going to duplicate some tabs to put reports in like we do every time right clicking the tab up top to duplicate it right clicking that duplicated tab to once again duplicate we're going to go back to the tab to the middle accounting drop down let's go into that balance sheet report as it's thinking i'm going to tab to the right accounting drop down this time the income statement or profit and loss report as it's thinking tab back to the middle and the range is going to change we're going to hit the drop down let's put a custom date range here and let's go for 2023 the end of 2023 it needs to be up to date so we'll update it and then tab into the right the income statement has the right range so that's good let's go to the tab to the left last time we have been entering transactions for invoices receive payments and imagining money in forms for sales at like a cash register we've been putting that back to the balance sheet over here into our clearing account so we made a clearing account which is a holding account so that we can then transfer it from the clearing account into the checking account in the same format that will be shown on the bank statements now i want to point out you might not need to do this uh every time it really depends on what your cycle is for your revenue recognition cycle so let's take a quick look at that again on a flow chart this is the QuickBooks desktop flow chart but we're just looking at the flow chart of it to see the forms in the process so we're in this revenue cycle and note that how you deal with your your revenue cycle isn't just a choice that you make it's the industry that you're in so again if you get paid by like youtube you're probably just going to deposit the money that you receive from the platform and call it income possibly with the use of bank feeds but if you're collecting sales at a cash register or something like that then you can't just wait till the money clears the bank because you're gonna have because you're gonna want to record the sales at the point of sale and tie that out to the physical count of cash that you have and do with other payment processing that you might have like credit card from this point and then make the deposit into the the checking account now this is where you're most likely to have to have this issue of possibly putting money into a clearing account as opposed to directly into the checking account so for example if you have a cash register and you're making multiple sales throughout the day let's say they're cash sales that you're making you're making credit card sales too possibly and the credit card company is going to do a similar thing but with the cash I think it's more concrete to visualize you're going to be uh collecting the cash at the end of the day you would want to count the cash and see that it ties out to your sales register tape right and then you're going to deposit the cash go to the bank physically deposit the cash into the bank when it gets into the bank then it's not there as a hundred five dollar sales but rather one lump sum therefore we don't want to put it into our checking account when we make each five dollar sale because we won't be able to tie the checking account out to what is on the our books the bank statement won't tie out because it'll be in there as a lump sum therefore what we're going to do is put it into the clearing account and then when we make the physical deposit into the bank we will mirror that in our system taking that dollar amount out of our clearing account and depositing it into the checking account so the same kind of concept can happen with a credit card or payment processors because oftentimes they will collect the money and then the credit card company or whatever the payment processor will group those monies together and then deposit it into your account once again not with like a hundred five dollar amounts but with one lump sum amount so you have a similar grouping problem that you have to deal with so that you can do the bank reconciliations which are very important to do and then if you have invoices if you're invoicing someone that means that you have to do the work first like a law firm or an accounting firm a landscaper and then you invoice the client tracking the accounts receivable they're going to have to then pay you now note with the invoices zero has a nice kind of system that you can group multiple invoices together if you needed to so it's less likely that you're going to have multiple invoices grouped together then if you got cash receipts on at like a cash register but it's possible that you can get multiple payments depending on what kind of system you have set up that are multiple invoices are going to be grouped together when you then take that amount and put it into your bank account so you might have the same clearing account issue when you receive the payments on the invoices zero has a nice system to be able to to group the invoices together into the system which would eliminate the need for the clearing account in that situation however you could still imagine multiple invoices and sales receipts that you're receiving and then you're going to make one deposit so you might still have a clearing account situation that you would need if your typical cycle is an invoicing cycle although it's less likely than if you're at like a cash register situation so if i go back on over first tab and i'm going to go to the business drop down and go down to the invoices so within the invoices remember we were awaiting payment on the invoices and we brought the invoices in what i mean by this is that you can select multiple invoices if they were going to be deposited together and that would kind of be one way to possibly deal with this grouping issue uh that with our deposits needing to match out in a group to what's on the bank statement but if you're receiving invoices and you're also getting money from sales receipts and whatnot that you're going to deposit together because if they're all cash payments or something like that or a payment process or process them then you might have to group a little bit differently than that all right so we have them into our account over here on the balance sheet and so now we're going to imagine that one grouping of this is going to be uh is going to be we're going to have a deposit of 7,570 85 which is made up of the sales receipt for sam the guitar man and string music got grouped together so what i'm going to do is is i think that there's going to be 7,570 85 of this clearing account amount that's going to go into the checking account at that one lump sum so i'm going to transfer it from the clearing account to the checking account uh in that dollar amount so that we can tie it out to the bank statements with either the bank feeds and or bank reconciliation now because we we're kind of going from one like checking account type of account to another although one wouldn't have bank feeds and the other would you could use multiple forms right you could say well it's a spend money form if you look at it from the perspective of the money that's going out of the clearing account more likely you might use a receive money form because the it's going into uh the like a deposit because it's going into the the checking account but you might use a transfer form because it's going out of two kind of checking type of account so we'll go ahead and use a transfer form if i hit the drop down we want to go from it's going from the cash clearing account it's going to the uh checking account and we're going to say the date is on jan jan uh 19 again i think was the day that we were doing this on and the amount is going to be 7570.85 and if you could put uh like a reference of some kind like this is for sam or the you know and and string music or if you're able to reference possibly the invoice number or transaction number that could be a useful tool here you've got the transfer transfer and add another let's go ahead and do the transfer and then we'll go up to the balance sheet looks like it did what we thought it should balance sheet update and then if i scroll down now we're in the cash clearing account let's uh dive into it drilling down on it and drilling down and we've got our transfer that happened where's the transfer here it is so it shows here as a bank transfer notice that's kind of nice because uh this will clearly show that it's a uh a transfer transaction as a as opposed to again if you use like a receipt payment or a deposit form or an expense kind of form then on one or the other side of these transactions it'll look a little bit funny right because you could end up with in in this case we have a decrease with the transfer so if you used a deposit form a received money form went in the normal checking account then it might show as a received payment form and be a decrease which is weird and that would be hard if you're trying to filter your transactions and whatnot that would uh that would be an issue because if you're trying to look at your checking account and filter by all the increases for example you would think you'd be filtering by deposits in other words if i was hitting the filter button here and i filtered by this where they call it source which is like the source document that was used to input and i go into the then you've got uh your bank transfers versus your uh your money in and money out forms right so spend money form and receive money forms so so obviously if you're looking for increases to the bank account you might have a received money form if you had a spend money form that was an increase to the bank account then that would cause you problems when you're filtering things so here you've got the transfers which could be an increase or decrease depending on what side of the transfer we're looking at all right the other side let's go to the other side and that's going to go into the checking account so let's go into the checking and check out the checking and here we have our transfer so it looks good here and now it's been put into our checking in this one lump sum even though we're combining basically two payments that we've received because that's what's going to be on the bank statement and we want to be able to tie out to the bank statement either with the bank feeds that we would not need to match up to and or with the bank reconciliation which are critical internal control tools all right let's do the rest of them and imagine we we deposit the rest of these which is the 20,500 in one lump sum so i'm going to transfer this into the checking account in one lump sum as opposed to in essence the three payments that are making up this we have the three payments from anderson jones and smith that basically make up this 20,500 that we're imagining due to the payment processor or if they were cash payments which that would be weird because they're large but they're going to be deposited as one lump sum so we're going to transfer that over let's go back to the first tab hit the drop down and we're going to transfer some more money transfer the money we got the money flowing people the money is a flowing cash clearing account it's going to go into the checking account as of january jan wary be wary of jan wary we're going to go to the 21st and it's going to go for 20,500 and then you might reference the invoice number or the payment numbers but it's anderson anderson jones and smith invoices that are grouped together that i'm going to try to indicate with the with the reference which might not be the best but that's where i'm going to put so we're going to say transfer it and let's check it out so if i go back to the balance sheet and update again because we want up to date stuff notice that the uh the cleared account has now disappeared because there's nothing in it anymore so if i go into this checking account here and we're going to drill down on the detail drilling down on the detail these tail so here we have them so that looks good so let's let's go back up and let's do a uh trial balance i'm going to tab to the right no impact on the income statement by the way because we just transferred the money out of the clearing to the checking imagining that we're just basically taking the money that was in the holding account in some way shape or form either checks that we're holding on to cash that we're holding on to or money that we have uh generated but has not yet been processed by payment processors or credit cards and transferred them into the checking account so no impact on the income statement because we've recorded the revenue related to that in the past when the transaction took place so let's go to the accounting drop down let's look at our reports and type in trial balance because if you type it it will come and that's what we want to see come and hear the trial balance type in it in so it will do so hitting the drop down up top we want to customize that range bring it on up to 2023 the end of 2023 update it bring that report up to date and then uh if your numbers tie out great the change that we have made from the prior accounting system or the prior point that we were at at the end of the last presentation was the checking account so the checking account if your checking account is off then that's the thing it would most likely be off if there was a problem so try to change the range you can increase the date range and see if that is the issue if it is drill down on that number and then change the date