 In this presentation we're going to record a transaction related to salary's expense. Get ready because here we go with zero. Here we are in our not-for-profit organization dashboard. Let's first take a look at our Excel worksheet to see what our objective will be. We're over here in tab five. So within tab five we're going to have our salaries transactions. Let's take a look at our little description over here. We're going to say that the salaries paid were 209,460 and then we had accrued salaries of 16,800. Now note I'm not going to go into the whole salary's transaction with zero. In other words we're not going to run salary within zero. You'll typically have to have an added feature and pay for the added feature in order to run it through there. Plus it's going to be a lot of information in order to run payroll and we do if you want to take a look at payroll we have some payroll resources for you if you want to look at some of those other courses. But we want to just record a transaction here. Note that payroll can be run through the zero system using an added feature paying more for the zero system or you could basically pay for payroll outside with third party vendors. Third party vendors including our company is like an ADP or a paycheck so you can run the payroll through the zero system with an added on added cost to it or you can basically have that third party vendor. We're going to be assuming we have a third party vendor and we're going to enter this into our system with just a journal entry. Now we're not going to get into a lot of the withholdings either so like I say if we want to get into payroll withholdings and all that kind of stuff we do have a course on payroll and payroll taxes. So we're going to say if you take out all that added information in terms of withholding the payment for payroll is straightforward where you would just be like pretty much every other expense. You're going to credit cash. Cash is going to go down and then we're going to be debuting the salary's expense. So we're going to import that transaction. If we put this into our system over here then we would have an increase or sorry a decrease to cash and then the expense would be going up down here so the expense would be going up down here. We're going to do that first transaction then we'll talk about the accrual. So let's go back on over and we're going to enter that into our system. This is in essence simply a money going out transaction so I'm going to hit the plus button up top. We're going to say that it's a spend money form so we're going to go into the spend money form. It's going to be coming out of the checking account so we're going to select the checking account and then say next. Now I'm going to set the employee up just basically as a vendor here since we're not going to be processing the payroll through the system so I'm just going to set the employee up as a vendor and call it employee one. So we're assuming of course that this is an employee that we're going to be paying that would be the name of the employee and also note that we might have multiple different employees and have a similar transaction for the multiple employees. So then we're going to have the date here. Let's make the date of the 6th of January so selecting the drop down I'm going to bring it on back to January 6th and then I'm going to put it into the I'm not going to have an item here description we could put payroll or something like that of the period but I won't. I'm going to say quantity is going to be one and then we're going to pick up the amount and the amount is going to be the 209.460 I'm looking at this number over here 209.460 so let's go to that so I'm going to say one unit price is 209.460 and then the account is going to be something like wages let's see if they gave us something such as wages or salaries or payroll here's payroll taxes so there's wages and salaries that's the one we want and then we have the unrestricted and the restricted so we're going to put this is going to be a component of the unrestricted items but I'm not going to choose them right now I'm going to keep them as unassigned and then we're going to go back into all the unassigned items and then assign them why would I do it this way because we're going to have to break this out between the 2020-2020 and that's going to be you know a little bit of a tedious task we're gonna have to do that in and of itself so what I would recommend doing then is is keeping the bookkeeping separate from that kind of process and then if you specialize you can you can go a little bit faster so if you enter in a lot of transactions then I would say let's not put it into the unrestricted and restricted items and then we will go back into those items from the reports and do just that breaking that break going back in and breaking these items out to their unrestricted categories so we will see that in a future presentation therefore I'm going to keep these blank for now that means the transaction simply going to be a decrease to the cash of the 209-460 the other side then going to the expense account of the wages and salaries and then when we run our worksheet report it's going to show up as un as uncategorized all right let's take a look at them say save see what happens in so we will save that and it's green that's good that means I didn't mess up or hopefully not so then I'm going to go up top go to the accounting and then let's open up the old balance sheet let's open up our financial statements so I'm gonna open up the balance sheet first we'll change the date up top changing the date to 2020 so I'm it's yeah 2020 January and then update that report so there's the balance sheet and let's get let's open them all and then I'll go back into them I'm gonna right click on the balance sheet and then duplicate that report I'm gonna tab up top right clicking and duplicating going back to the tab to the left also gonna open up our income statement so I'm gonna open up our normal income statement then I'll open up the income statement worksheet I'm gonna open up the normal income statement first normal income statement opening at this point there it is and now let's go ahead and copy this I'm gonna right click on this up top right click on this tab up top and duplicate that tab want to open up another report going back to the tab to the left we're gonna go to the accounting drop down. This is going to be the worksheet report that we have put together. We put this together in a prior presentation. It was a good time, great time. If you missed it, you might want to go back and check it out because you're missing out if you haven't seen that one. This is going to be our worksheet report, modified income statement in essence. Okay, so now let's analyze them. Let's go over to the balance sheet again. I'm going to hold down control and scroll up a little bit so that we're at that one to 5%. That's where I like to be the one to five. And then if we scroll down, we're going to say that the checking account should have going down. Let's go into the checking account and see how it went down with regards to our payroll. So here it is, if we scroll down, there it is, decreasing by the 209.460. I'm going to go back to the balance sheet up top. Just going to go back to the balance sheet. Then if we go to our income statement, the other side is going to be on the income statement. So the standard income statement here, if I scroll down, just having the one column, we have the wages. So there's the wages. It looks good. That looks appropriate. And then we're going to go to the worksheet. If I go to the worksheet, then now this is going to be breaking out between unrestricted and restricted. Now you'll note down here that it's not in unrestricted or restricted. It should be in unrestricted and then further broken out by the restricted categories that we saw, the 2020-2040 categories. But it's not over there. It's in unrestricted. So that's what we're going to do. All the expenses, I'm just going to say, hey, just put them in there like you normally would. Don't burden yourself with trying to break it out every time you enter a transaction. Because unless you have a few transactions, you have a lot of transactions, it might be faster to just enter the transaction's end. Then we'll go back into each of these unrestricted items at the end and allocate them. And we'll separate our duties in that way and specialize a bit, which should hopefully make things go a bit faster. All right, so now let's right click on this tab up top again. I'm going to right click on this tab and duplicate this tab. So now we got our balance sheet. We got our income statement. We got our worksheet. And then we could do stuff on the tab to the left. We're going to do more stuff, stuff we're going to do. If we go back on over to the worksheet, it's going to be the accrual entry. Now this is an adjusting entry typically at the end of the period. There would be something like this, you know, an adjusting entry. You'd say, well, payroll, if I pay people every week and the end of the month, the 31st and ended on a Thursday, then I hadn't paid people till Friday. So that means there's going to be there's going to be four days of work that I haven't yet paid. And we'll have to do an accrual entry for it recording the expense and recording the liability for the work that had been done up to that point that we haven't yet paid because in essence, the payroll is basically on a cash basis, more or less. And that's going to be easier logistically. But then we're just going to adjust it periodically at the end of the period for that adjusting entry. So this is a period and cut off adjusting entry for, let's say, the end of January. So I'm going to enter this then, go back on over. And this would typically be done with basically a journal entry. We would typically use a journal entry to enter something like this. So now I'm going to hold down control and scroll back down just a bit to get back down to our 100%. Then and you want to do that when you're entering data. Otherwise, you're looking might, you know, get a little funny, they might do something funny. So when you're on the reports, you can zoom in. When you're not on the reports, you can still zoom in, but it might do something funny. And if it does, then you want to zoom out, because that's probably the problem. So then I'm going to go to the accounting and we're going to go down to the reports, accounting, then the reports, we're looking to enter journal entries This is kind of a funny place that they put the journals, but this is where it is. So I feel like it's fun. It's under the accounting. And then we're going to go to the journal reports, to the journal report. And there might be a reason for this, they might be putting the journal entries in here to try to remind you to do, you know, use forms before you start just entering journal entries. But in any case, we're going to hit, we're going to enter the journal entry. So we're going to have a add a new journal. So we're going to add a new journal. And then we have our journal entry that we can enter. So I really like this narration thing that they give up top, because that gives you the description that goes on both tabs. So I'm going to say this is a payroll, well, let's just call it an adjusting entry. And I'll say payroll. So then they can separate the adjusting entries from the non adjusting. Now if it's an adjusting entry, it would be in there as of the end of the month. So I'm going to say the end of January. So let's go back to January 31. It would typically be in there as of the cutoff date. And then if I go down to the description, notice it populates the description for each line item from that narration. So I don't have to like copy and paste the description for each line, which is nice. So I appreciate that. And then I'm going to say the debit is going to be going to the wages. Let's see if we can just type it in there wages and salaries. That's the one. And it's going to be for or then again, I'm not going to note, we still have the classification here. And I'm not going to record it to them, but just realize that it is here on the journal entry. So when we do go to classify, we can use the journal entry to classify this out. We don't have to use in other words, a form because it has the unrestricted and restricted tracking feature, because they are in the journal entry here as we see. Okay, so then we're going to go back on over and say the amount is 16 eight. So 16 eight. So I'm going to say 16 eight, 00. And then the other side also see that description comes down. That's nice. And then the other side is going to go to a payable account, which we most likely don't have. We're going to call it like payroll payable. So it's going to be a liability account payroll. They have it payroll wages payable. Yes, indeed. So that's the one we want. That's the one. All right, so what's this going to do when we record it, it's going to increase the expenses by that 16 eight. And the other side is going to go to a liability because we owe it as of the end of the year or the end of month, which is that 16 eight as well. That's going to increase the liability. And then it's not going to record it to a category so it will be un-categorized once again. Let's check it out. We're going to say post that one. And then hopefully I get a green thing green thing. We did it good. And then we're going to go back to the balance sheet and update that report. Hold down control, scroll up just a bit, bring it on back up to that one to five. That's where we like to be at the one to five. And then if we scroll down on the balance sheet, there's the payroll wages payable. That's going to be the 16,800. So that did just what we wanted it to do. And then if we go to the income statement and update this report. So remember to update. You want to be working with fresh reports, refreshed reports, then in the salaries and wages, we're going to have two components in there. One was the one that decreased the cash and the other is our journal entry. Scroll and down, scroll and down. There it is. And you can see here, it says manual journal. So it kind of gives you the source document, spend money for versus the manual journal. All right, so then we're going to go back up and go back to our income statement. Now let's go to the income statement worksheet and freshen up that report with an update. So we're working with fresh material, fresh data, fresh numbers, fresh financial statements. So then if we go on down, we're going to have once again in the wages at the 226 260 not assigned to unrestricted. This is where it should be unrestricted, but we're not going to do that because we have to then further assign it out to the 2020 2040 categories. And we're going to do that all at once in a future presentation, which will be great. But that's it for now. Let's get out of here.