 Zero Accounting Software 2023 Budgeted Income Statement Reports Get ready to become an Accountant Hero with Zero 2023 Here we are in our custom Zero homepage going into the company file we started up in a prior presentation Get 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 were 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 Bayer Dynamic? Not sure if I said that right But this is the DT770 Pro 250 OHM Studio Reference Closed Back Headphones I wear headphones basically every day for a large part of the day They are important to me, therefore I've gone through many different kinds of headphones I've had these for some time and they've worked quite well They fit over my ears, but I'm still able to put my glasses on under the headphones The headphones not pinching too tight on the glasses to give me a headache Which is nice, the quality of the patting is good And it has lasted for some time, I've had these for some time now And they haven't gotten all torn up on me or anything like that I also like that I have a cord when I'm doing my recordings as opposed to a USB centered headphone Because that frees up a USB port and I find the USB headphones to be less reliable They come with an audio jack that looks like this Which is useful for me because that plugs into my audio interface However, if you want to use the headphones for some other purpose I believe it's fairly easy to get a converter to other types of audio jacks 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 giving you access to all the courses Which are well organized, have other resources like Excel files and PDF files to download And no commercials Great guitars, let's duplicate some tabs to put our reports in We're going to go to the tab up top and duplicate that tab Tab up top and duplicate that tab And then back to the tab to the middle Accounting drop down opening up a balance sheet report This being a comparative one, if you don't have a comparative one Open the standard one Tab until the right, accounting drop down, same thing on the income statement This is a comparative income statement if you don't have it Open a standard income statement Last time or in prior presentations We've been putting together our budget So we basically took the data input or the information that we had in our system Two months of data input We exported it to Excel as our starting point To create a budget, we wanted to create a budget for the entire year Therefore that two months of data input We kind of thought of as if it was the prior two months Of November and December Used it to construct a 12 month budget And then we imported it from here Back into zero so that we can now run reports from it So note how zero fits into the system then We want to think of it as first We want to export from zero typically to something like Excel So that we have more capacity in Excel to create our budget often times And then we want to take it from Excel And put it back into zero Possibly using the template to do so Or possibly just doing the data input So that now once in zero We can run reports from zero in our same system As time passes for example We're imagining here January and February has passed And therefore we have actual data for January and February As well as the budgeted data And we can run variance analysis within zero Which is one of the major tools that you will have for it Alright let's open up another tab And look at some of our major reports We'll also see how we can kind of adjust The reports if there's an error in it or something Which we have here We have an error in it So I'm going to duplicate it Which we made on purpose We purposely did the error Because we don't really make mistakes over here But sometimes people make mistakes So we try to demonstrate in our practice problems Like mistakes being made and how you can fix them If you make mistakes So I'm going to hit the drop down And let's go into our reports And then we're going to go into the So we made our budget manager Now we've got our two main reports Which is the budget summary And the budget variance The variance is the one that really Is helpful as time passes Because it gives us that differential Whereas the budget report kind of just repeats What we kind of have in Excel over here Although it gives us those subtotals and whatnot In a nice format for us So let's open up the summary first I'm going to right click and duplicate it And up top We've got our summary report So this is the data We've got the overall budget Now remember we could have multiple budgets That we could put together So that's another great tool that we can have Because we might want to run different variance Or different variational budgets Then we've got the from point We're going to be saying January 2023 The periods represent the intervals That we want to show So normally we would have the month by month breakout Or you might have like a three month by three month That would be a quarterly type of breakout Or for the entire year So currently we have here one month at a time And the number of periods that we want to show Is we're going to show the 12 periods So if I update that then We're showing January on through December So if I wanted to show something on a quarterly basis Then I could go and say I want to show it every three months And then I would think that we would only want four periods Four periods of three month periods And that would give us our quarterlies So now we've got March, June, September and December And then if we wanted a half year Like every six months We can go to the six months one And in that case I would think we would only want two periods And those would end on June and December And then we could do a yearly one with 12 month periods Which in this case we only have one Because that would be our yearly number So pretty neat breakout to kind of be able to Get us to those different types of reports That could be like a quarterly report Or a semi yearly report or a yearly report So I'm going to go back down to the months Because that's the way we did our data input And I want 12 months or 12 periods And there we have it Now we had this issue with the data input last time And we could see if I look at this compared to my data input here I'm at 1037 in January And here I'm at 1706 So one way we can try to compare this Is to just keep on looking at the totals as I go down So the first thing I would look at is that 34606 And go back on over here and say Alright does that tie out to these three These three in January 34606 it does And then I get down to here I've got the cost of good sold 25275 So that looks 25 22977 And then we've got this amount here And that's basically the amount that could be throwing us off Because it's going into basically other income So if I take my difference down here I could say what's my difference If I took my 107.06 107.06 107.06 107.06 And say what's the difference between the two It's that 669 if I divide that by two I could see it's that 334 So this one's going the wrong way because it's in that other category So it's in here and it's that other income I want it to be like showing as an expense So I'm going to put that in as a negative And that hopefully should shore this up So I'm going to go back to the first tab And let's fix our budget by going to the accounting drop down And then we're going to go into our reports And then we'll go into our budget manager The budget manager And then I'm just going to go into the I'm going to get rid of the prior period showing And then let's show it on the full view that looks good And then I had this amount I want it to be in there as a negative So I'm going to say negative And I'm just going to put the negative all the way across Because I don't want it to mess up anything else So I'm just going to go into each of these Even though it's tedious and I probably could copy it across But I'm kind of hesitant to do anything drastically And correct since this one was a little bit different So I'll say negatives, negatives, negatives Why are you so negative, man? I'm not negative, I'm just putting the negatives in I'm a very positive individual Compared to some, at least Maybe it depends on whatever Let's run this again, let's update it again And then if I go down So now we're at the 1038 1038 is pretty close If I go all the way to the right We're at December 23, 816 So 23, 816 in December Okay, so that's going to be our budget summary report If I wanted to take a look at the whole year I could say 12 months in the period And then let's say that we wanted to show one period of 12 months And so now we've got our total Which comes out to 125, 972 And I've got 125, 965 125, 972 So it's off by 7 Which could be rounding So I'm cool with that because it's just a budget So that's kind of immaterial So I'm like, alright, that's good And so let's say, let's bring it back down to one period And we'll bring it back to 12 of those one periods So there we have it So now we've got this nice report That we can generate And we can kind of make our projections We can provide it to a client and whatnot That project out into the future And then as time passes What we want is that variance report So now that we have this in here Let's go and make another tab Duplicate and let's go into the accounting And reports again And look at the variance report What is this? I went into the 1099 thing or something That's not where I want to be That's not where I was trying to go, man Let's go to the budget variance report That's what I'm talking about That's where we want to be Alright, so up here then We've got our date range So let's just take a look at the first two months Because we have data We have actual data in the first two months So I could go from January 1 to February 28 And then this is our one budget So that's good and update it And so there we have it Now we have our options here A cruel cache And we could show the accounting bases Codes and decibels if we want We probably don't need the decimals We don't because we didn't put any pennies in there So I'll just take the decimals off And I can clean it up Or make it a little bit smaller And easier possibly to see Alright, so this is the standard So now we actually have numbers So now we are imagining that time has passed And the actual numbers have come through for January So we have the actual numbers And then the budget numbers And the variance, which of course is the difference So if we pull out the trusty calculator To do some trusty calculations We can say obviously if I took the total down here We've got the actual 69211 minus the budget 73192 So the actual is less than the budget And then we've got the difference Which is the variance Which is going to be, that's calculated By taking the variance over the budget amount So divided by the budget, 73192 Moving the decimal two places over about 5% And so there we have it And then we have February, same thing So we've got the actual, the budget The variance and the variance percentage And then we could, we do have our editing layout So we could enable add notes So we can insert content and add notes to it We could edit the layout And we have that capacity to do our editing Over here as we choose as well So we might have a report like this for example And we might add a column That would sum up the total So you still have that flexibility that zero has With making more flexible reports Because of that great editing tool That it has here So let's go back on over Now obviously if we went out into the future Beyond this, we wouldn't have any data left So if I pull this all the way out to December For example, we have the budgeted information All the way out through December But we don't have actual data out past February So it's actually not even going to generate it Because we don't have any actual data For the actual numbers out past that point So obviously the variance report is useful When we're comparing, when time has passed We predicted what's going to happen We put a budget in place And then time has actually passed And we can make that comparison from The budget versus the actual Now down here you have a similar Kind of thing on the expenses Just to look at the expense side of things These are, you know, here's the budgeted amount For the bank service charge This is the actual, this was the budget And here's going to be the change And the variance and they give you these nice little arrows To say if we're over or under So in this case we're under budget And if we looked at this we could say This is what actually happened 35 minus what was budgeted 216 a difference of 181 under budget And I can divide that by the budget amount 216 moving the decimal two places over That gives us our 84 if I multiply times 100 It's going to give us about 84% And we can see that all the way down here And then we have of course our totals And again we've got the editing of the layout We can customize these and we could of course Export these files to the PDF to Excel If we want to further adjust them with Excel So the overall process of the budget We generally are going to say The accounting department isn't normally responsible For the budget alone Because they need added information From the management or the owner of the business But they're going to be included in the budgeting process Because obviously it looks like an income statement In a balance sheet and we're experienced In making the income statement and the balance sheet From a technical perspective The way I would recommend doing that Is taking the information from zero Downloading it to Excel And then working with your team Of the owner of the business management And the accountant in order to make a budget That we can then put back into the system Zero data inputting it into zero from Excel Possibly with a template and importing it Or possibly just data inputting it So that zero can then run these nice reports One of the best ones being of course This budget versus actual report That we could run as time passes To benchmark how we're doing Compared to how we planned That we would be doing