 Zero Accounting Software 2023, PayPal, Bank Feeds, Data Input, and Transfers. Get ready to become an Accountant Hero with Zero 2023. First, a word from our sponsor. Well, actually these are just items that we picked from the YouTube Shopping Affiliate Program, but that's actually good for you because these aren't things that we're just given to us from some large corporation which we don't even use in exchange for us selling them to you. These are things that we actually researched, purchased, and used ourselves. Acer 27 inch monitor. I've been using an Acer monitor as my primary monitor for a few years now. This is the first Acer monitor that I have used after having used a series of different brands of monitors in the past. The Acer monitor has been performing well and I'm trusting the Acer brand more and more as I use the monitor. I have a 27 inch monitor which I think is ideal for what I do, which is of course the screen recording and the editing. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com where we have many different courses. You can purchase one at a time or have a subscription model given you access to all the courses. Courses which are well organized have other resources like Excel files and PDF files to download and no commercials. Here we are in our custom zero home page going into the company file. We set up in a prior presentation the bank feed file duplicating some tabs to put reports in like we do every time. We're going to right click on the tab up top so we can duplicate it and then we're going to right click on the tab up top again so we can duplicate it again. Back to the tab to the middle accounting drop down. We're looking for the balance sheet report and then we will tab to the right accounting drop down this time the income statement report changing the date range. We're going to go from January 2022 to December of 2022 the end of December that is updating the report. Let's go to the first tab now accounting drop down. We updated our banking information so bank accounts and currently we started out looking at of course our checking account first account. Most people think of we then added the credit card to the bank fee transactions and now we're looking at PayPal remembering that when most people are using PayPal they might be using it for a couple different things. You might be using it simply as a collection tool and intermediary collection format for say gig work or something like that. In which case you're trying to get the money through PayPal gets deposited through PayPal and then transferring it from PayPal to your bank account. And the question then is going to be do you want the added step of PayPal here in the bank feeds or do you want to simply eliminate that whole step wait till it comes through to your checking account. You want to just record it as income on the bank feed side when it comes to the checking account noting that when it comes to the checking account all you will see in that case is just basically this is a deposit from PayPal. So that would work fine if all of your money coming through PayPal you want to group together basically as one account as basically income once it hits your checking account. However if you want more detail about the different kind of platforms or whatever that are paying you through PayPal then you might want to connect the PayPal account as we have done here so that you can catch the income that's coming in as it hits the PayPal account and record it possibly as different types of income accounts. And then when you transfer it from PayPal to the checking account it will just be a transfer that will be showing up on both bank feeds in a similar fashion as we saw with paying off the credit card. Now you could also maybe using the PayPal account as a checking account at this point in which case it would be like having another checking account that you would be doing the bank feeds with which would have both increases and decreases possibly. So if I go into the PayPal we're in the account transactions we're not we don't have anything in the account transactions because we're trying to construct our entire system from the information that's coming in through PayPal. We're going to be building what's on our side from the bank feeds. So we transferred in these transactions from the bank feeds. Okay so we have our different incomes. Now we're going to imagine that these are income you know from different platforms here from different sources that we can now break out instead of we're imagining that as money built up we transferred it from here to the checking account. So if I didn't use the bank feeds for PayPal I would just transfer like this 20,000 or whatever to the checking account and that would be it. But I wouldn't have all the detail. So on the other hand if I add this stuff and then add the transfer I get the detail and I might be able to pull in different income accounts based on who we receive the money from. Now also remember the general rule we set up when we did the checking account when you look at your income statement. Usually you don't want to have a separate income statement by customer or by item. Those are usually errors that people make. They try to make a different income account by for every single customer that they have which means that you're going to end up with a very long income statement. And it shouldn't and it probably doesn't add the detail that is really useful in many cases and usually you can have a separate report that will give you more detail about the income broken out by customers. So you don't need it on the income statement which is summarized and or people break it out by item each individual item they sell they want to have another income account. Usually you want just have like a general grouping of the income accounts on the income statement. And then again you might be able to run other reports to break out the detail. However when you're talking about gig work for example and you're getting paid by a platform that I think that's kind of an exception to the rule. You might say well I'm getting paid by Amazon or whatever. Right. So this is my Amazon income account. I'm getting paid by audible. I'm getting you know so we're going to put these into like our income accounts in essence by platform which isn't kind of normal. Unless you're in you know a specific industry. So I'm going to imagine teachable as a platform you know. So I'm going to say all right we're going to get teachable income. So I'm going to say add this and we could just do the normal rule. But I just want to add the account here and then I'll add a rule for it. I'm just going to say this is going to be add. I need to see the account what kind of account do I want here. It's going to be account number 4 4 0 0. Let's say 4 4 0 0 adding the account code 4 4 0 0 account type. We're going to I'm just going to type in revenue. Can I type in revenue account. The name is going to be I can't see them teachable teachable teachable income. Let's say and there it is. Let's go ahead and save it and now I will add a rule to it. So I'm going to go up top and say that let's add options and a bank rule. We'll just do a bank rule the bank rule any condition description. I'm going to use any text same kind of rule rules that we looked at that before any text field. I want it just to contain teachable if it has teachable in it apply the rule and then the contact. I'm just going to say teachable teachable is the contact. Can I just where did I copy teachable down here. Can I copy teachable somewhere. No I guess not teachable. Oh there it is up there. I could have copied it from there. I'll copy it here create teachable account or name and then the account down here is going to be teachable 100% go into teachable. And I've been putting the reference here and then the name is teachable and I can run it for PayPal or any other kind of account. So if I switch the accounts maybe I say all accounts so if I switch it to my checking account or something the rule will still apply. And so we can add that. And so now we can add these in teachable income teachable income the rule being applied and teachable income. Okay looks good and if I go to my balance sheet and update it then I've got my PayPal information flowing in which is nice which is nice. Now we're still going to have an issue with us tying out to what is in our PayPal account on the PayPal side because we have that same beginning balance issue because I might have transactions before I started importing from PayPal. We have that same issue that we'll talk more about when we get to the checking account and the same thing would apply to PayPal. We talked about it a little bit when we looked at the credit card account. Let's update the income statement and now we've got the teachable income. There it is pulling through in a separate category so that's the benefit. We can break it out into a separate category instead of just calling it gig work income as we would basically have to do if we just wait until it flowed through to the checking account. Alright you to me let's just imagine that's another platform we're getting paid from another teaching platform so I'm just going to add the account down here. I'm going to call the number let's just see what the numbers are. This is going to be let's make it 4 4 1 0 let's call it 4 4 1 0 4 4 1 0 and it's going to be dropping it down a sales account. Let's say or I've been doing revenue haven't I revenue and then I call it this is you to me income and that's all I need. That's all I need some tasty waves in the cool. Alright we're going to go options drop down options drop down and create a rule. And let's say the description is going to be I want any text field and it all it has to do is contain you to me. That's all you need and we're good and then also say that the contact will be you to me new contact and account you to me and there we go. And so then I've been putting this up top and I'm going to say it applies to not just PayPal but everything in the event that I switch from collecting through PayPal to the checking account. If they let me do that at some point then I could then the rule would still apply so we'll save it out and then we'll just copy those over you to me you to me you to me you to me cool. Alright then you to me you to me I got a lot of these here okay so then I could just pull these over. And say that PayPal is going up and then on the income statement we're just adding these separate groupings of income accounts right so I'm just kind of making these numbers up here so it's not like. But and then we're going to say this is another platform right let's just say this is another platform so we'll just say that we have that income from there right so I'm going to go okay let's add another account. Skills success. And we're going to say. Did it did it did it did it did it. Sales. Four four two zero. So let's go four four two zero. Four four two zero. Revenue. And we'll call this skill success. And add it. And let's make a rule. There's rules around here. Can't just do whatever you please. There's rules of engagement. You violated the rules of engagement those rules are here for the safety of you and your team. Any field down here okay and then we're going to say if it contains skills success. And the name skill success. Add in the rule and then. I thought I had an account that I added skill that I spell it wrong or something I think I did. All right spelled wrong skill success. And then we're going to say reference any bank account. The rule has been made another rule is in place there's too many rules. I've had it up to here with your rules. All right. So now we've got those in place. And so so then so that so if I check that out by the way. So now we've got PayPal racking up the dough. I'm just laying back and watching the cash roll in on my iPhone at what lay at the beach. As my revenue comes in and I categorize it into all these different accounts. And then I'm going to go back to the first tab. So now these are transfers from we're imagining that they're transfers from here to the checking accounts. If everything was properly situated then these would be on the other side and the checking account. I'm not sure if I've set things up for that to be exactly the case. Let's check it out. We have September 24 20,000. Let's go to the bank accounts checking account. So we should see them on this side checking. Let's check out the checking and reconcile. September, August, September. I don't see that one. Oh, here it is. Yeah. So we have the transfers. So now they're transferring from one to the other. So we have the same issue with the with the credit card now. So in other words, if I go to the bank feeds, I'm if I go to the balance sheet, now I have kind of like two checking two checking accounts. Right. So we're going to have money going from this PayPal account to the checking account. Now we would imagine it almost always goes that way. Right. If that's how your system is set up. In other words, if you're using the PayPal primarily to collect revenue, your revenue is going to go up here and then you're going to transfer from here to the checking. However, if you're using PayPal to pay for stuff, then then you might have transfers going the other way. But in either case, when you do the transfer, zero will basically force you to on the bank feeds to use a transfer form. Because you might think, hey, if I'm on the checking account side, I should record it as a deposit or receive money form. But if you do that, then on the PayPal side, you will have a receive money form, which is decreasing the account, which looks funny. And if you do it, and you might say, well, if you're looking at it from the PayPalX perspective, I should use a spend money form. But if you use a spend money form, then in the checking account, you can have a spend money form, which will be a deposit, which again will look funny. That's why we typically will use checking account, the transfer. Now note that you can also facilitate the transfer from either the checking account or PayPal account. If you facilitate from the checking account, which I would think would be the normal thing to do because you're probably focused more on the checking account, then you're going to say that it's going to be a transfer from the PayPal to the checking account and then go to the PayPal account to match the transaction in the bank feeds. If you start it from the PayPal account, then you can do the transfer from the PayPal and then on the checking account side in the bank feeds, you would match. Let's do both of those if I can here. So here's this 20,000 in my checking account. I'm currently in the checking account. So I'm going to say it's not, I'm not going to create a transaction, which would be a receive money form. And notice I remember I can't really do that because the other side of the transaction should be PayPal and zero saying no, I'm not going to allow you to record a receive money form because it's coming from another checking account. So they don't even give you that option. You could put it in and out of a clearing account, which if you're still feeling a little unsafe with these bank feeds, you can do, but I'm feeling pretty secure with them more and more as I use them. So I just do a direct transfer. So I'm going to cancel this, cancel and go to the transfer. And so I'm going to say it's going to go to the PayPal account. So it's a receive here. That means it's coming out of the PayPal account. And then I'll just say, okay. And then if I go to it recorded the transaction, but I didn't verify it yet on the PayPal, but it has been recorded because if I go into here, I can go into my checking account. And here's what I mean by sorting the data. If I want to filter the data by, for example, the source, I can hit the filter up top and look at it by the source. And I want to look for the bank transfers. And there we go. So now I can see, well, hold on a sec. I got to update it. And now I can see the transfers here. So there's the 20,000. So that's kind of nice to be able to sort it, you know, by the, by the transfer as opposed to sorting by like a receive money form. That's actually a decrease or something funny like that or a spend money form that's an increase or something weird happening. All right. And then on the on the PayPal side, it recorded it on the PayPal side, but we haven't yet verified it on the PayPal side. So here it is. But I still need to verify it on PayPal side. So let's go back to the first tab and let's hit the drop down for the accounting. Boom. Don't hit it too hard. Don't break your clicker button. But then I'm going to go to the bank accounts and we're going to go down. I would say you got to hit that thing and then someone like smack like breaks my mouse. They break the mouse. I didn't mean that you should, you know, hit it with the full force of your fist or anything. I mean, but any case, here it is. So now we've got to verify it. So now we just verify it. When we verify it, nothing new is going to happen. This is just helping us with the bank reconciliation. Notice now it's been recorded on our side, but it hasn't been reconciled. So now it's on the checking account side, but it hasn't been reconciled. So we just go over here and say no problem. We'll reconcile it right here. Let's do it. Let's do it from the, from the other side now. So if this is money that's coming out of PayPal and into the checking account, but now we'll initiate the transaction from the PayPal side. So we're transferring from the PayPal, which is still a transfer, but now I'm initiating it with the spend side. And it's going into the checking account. So we'll say September 25. Let me just go into the other account and see if I have that over here. Make sure I matched everything up for our practice problem purposes and see if I have it on the checking account. So we're going into the checking account, which I should just be able to verify now September 25. So there it is. I do. Everything's lining up. So before I even record this, I'm not going to record it yet because I already recorded the transaction. This is would just be matching the transaction that's already been entered. So before I do that, just note it's already been recorded. I can go over here and say, let's go into the checking account and I can filter by my transfers again. Let's do that because fancy filters, man. We like the fancy filters. So we'll check it out by the source. Apply it. Boom. And there should be 5000. Bam. Boom. Bam. A lot of action here. It's like a Batman comic book with the booms and the bams. Zowie. And then in the PayPal, we should have the 5000 already recorded here as well. 5000 transfer movie B to the end back to the first tab. And so now I'm just going to verify it on the checking account. Nothing new will be recorded. We're just verifying Roger that Roger out. It has been verified. Let's do the last one. I'm in the checking account now. This is coming in from PayPal and I'll initiate the transaction from the checking account side again. So transfer. It's coming from the PayPal. Okay. If I go into the PayPal, I should have recorded it over there and PayPal should be done, but I haven't yet finalized it on PayPal. So it's not quite done on this side, but I already recorded it is what I'm trying to say PayPal. And then over here, I recorded the transaction, but it's unreconciled. So if I go to the reconcile side, there it is. It's just ready to be clicked off, which will not record anything new because it's already been recorded. Let's verify that by updating the balance sheet going into the checking account. Apply the same fancy filter, fancy filter technique. This is what I call the fancy filter technique. From the source document, bank transfer update, and we filtered fancily right there. There's the 9000 and then the other side's already been recorded into the PayPal, even though we have not finalized that yet. So here it is on the pay to the pal, pay up pal, pay up pal. So we go into that one and we've got the 9999. There it is, boom, back on over. It's under the 10,000. So the government's not going to spy on us or something. No wait, they lowered it to like $2. They spy on you if you spend $2 now, I think, or something. I don't know. Whatever, whatever. They're all spying on us. I'm going to say then let's verify this. So there it is. So now the PayPal is done. So remember that this ending balance and PayPal at this point may not completely verify or check out to what's on the PayPal account yet, because we might have had a beginning balance in place. So we'd have to deal with that beginning balance problem. If you're treating PayPal like a checking account, you would also want to go through the reconciliation process, the reconciliation process, the bank reconciliation should be really easy though, because most people will be entering their PayPal information in a similar way as we saw with the checking account in that we're going to be basically using the PayPal information to construct our financial statements. Therefore, there won't be any differences between PayPal books and PayPal on the financial institution because there shouldn't be any outstanding checks and deposits because we're reliant on the PayPal information to create our books. And so next we'll take a look at the checking account and add some more rules there. And then we'll take a look at the bank reconciliation for the checking account, which will touch on some of these same kind of issues that you would have if you wanted to do a bank reconciliation for the PayPal account, because you're basically treating the PayPal account here as kind of like another checking account. Let's take one last look at our income statement over here. Notice the income statement, now we're building our income statement, nothing new happened from the deposits. But now the point of this is that the two systems you want to think about are, if I use the PayPal account here, I can break out these income accounts in a bit more detail. If I didn't use that system and all this stuff flowed through the PayPal account into my checking account, I could imagine just one account that I would add once it hit the checking account, and it would be the same amount here, but just called, you know, income, gig work income or whatever. So the question then would be, is it useful for you to have all this information broken out by like platforms? Sometimes I would think it would be cool to have, be nice information to have, but you might not need it if you're just trying to do this for like your taxes or something like that. You just need an income number that's accurate, right, maybe possibly. So that's those are the kind of questions you need to be asking yourself when you have these kind of intermediary platforms like a PayPal, similar issues come up with like a stripe, or if you're trying to do things through a Shopify store or something like that.