 zero accounting software 2023 rental estimate and customer deposit get ready to become an accountant hero with zero 2023 here we are 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 purchase and use 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 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files to download and no commercials in our custom zero home page going into the company file we set up in a prior presentation get great guitars we're going to duplicate those tabs to put reports in like we do every time right click in the tab up top so we can duplicate it we're going to right click the tab up top again and duplicate it again back to the tab to the middle accounting drop down we want to open the balance sheet and then tab into the right we're going to open the accounting drop down a form of the income statement but the comparative income statement we set up in a prior presentation if you don't have that one you could just open a normal income statement but this one compares January and the current month we're working in February back to the tab to the left drop down on the date range so we can customize it we want 2023 and the end of 2023 update that report now in prior presentations we've been focusing in on our new source of revenue that's going to be great it's going to make us millionaires and that's going to be that we're going to rent some of our guitar equipment so let's just take a quick recap in our flow chart this is a quick books desktop flow chart we're just looking at it to see the flow of the process of our accounting cycle so we have guitars that we've been buying and selling to generate revenue we also then do guitar lessons and now we're going to rent some of that guitar equipment so the process that we're going to use to do that is going to be that if someone calls in for a rental of a band set we're going to set up an estimate or a quote and then we're going to pick up a down payment to reserve the equipment for them and lock them into that commitment of the rental and then when they come in we will actually have an invoice for them when we actually conduct the giving of the rental property which will record the revenue and then we will collect the payment in our normal accounting process on on that invoice and deposit it so that's the general idea in order to do that last time we set up a few new things we set up another income account which is in the drop down here accounting drop down chart of accounts and if we go into the revenue side we set up a new income line item of rental income we then set up our items in order to populate that so if I go to the accounting drop down let's not know the business drop down and go to products and services we set up the things that we're going to sell the items that are going to drive the population of the quote or estimate and invoices the bank set the bank of the bank it should be banned it should be banned but in any case the rental added rental guitars and whatnot so we're going to have this is the big baseline let's change the name if I can could you spell it right because you're confusing me this is ridiculous I don't even know okay so let's edit the item this is not a bank that we're renting we're renting a band set so we're gonna say you have to buy the minimum band set at $2,000 if you want anything and then from there I'm gonna go back to my products you can add another guitar or an amp and and modify it from that baseline point is the general idea I have no idea what an actual rental of band equipment would be I'm just making numbers up as we go here so we have some examples okay so now someone calls in they're like hey we want like a band set because we're making a band and again because we have it set up properly and we've educated the punk kid that we've got sitting in the shop taking the calls then he can populate the quote and get everything rolling even though he's not the brightest bulb you know in like the Christmas tree bulbs or something so we're gonna so we're gonna say that we want to say add and he's just gonna say I'll make a quote for you you want a band set we do that now let's add a quote I'll tell you how much that costs and let's say this is gonna be at one of my customer number let's just say number 10 customer 10 we'll add customer 10 and I'm just gonna keep on going with Feb 27 here so Feb 27 the call-in happened and then when I'm just having through the quote currency standard not going to a project exclude the tax alright and then the item I'm gonna say well you have to and are the punk kids like well you've dude you have to do at least the baseline band set if you want the rental at all and it's $2,000 at the baseline and they're like okay whatever but we but then they're like we want to have an added guitar and it says right here so the punk kids like in that like has two guitars a drum set microphone and amplifier and then they're like well we want an extra guitar and there's like oh you could add a guitar let me see where that is here you can add rental guitar and they're like we want two of those are like that's another $50 bro $50 and they're like well we also want another amplifier it's like we could do that too if you want to piss off the neighbors you can add an amplifier and that will be amp rental amp another $40 and that'll be 40 so there we have it so then we can get the estimate currently populating at the 2004 and all of these I said were tax exempt that's correct I'm gonna change this to four amplifiers for whatever reason they want four amplifiers they're really gonna piss people off so that comes out to 160 so now we're at the 2002 60 and then and so now we can say whatever our baseline idea is on the down payment so then the next step would say okay we'll reserve that stuff for you but like dude we've got people that want this stuff all the time and we could sell this stuff at any time so you have to give us a down payment to make sure you're locked into this system so now we can use this to kind of figure out how much we would want on the down payment to reserve the reservation and make sure they're committed so let's first record this one so let's say we're gonna we're gonna save it and then we can send it I'm just gonna say mark it as sent here so we'll say mark as sent and then I can check that out so if I go into my estimates business drop down and go into my quotes here we've got the drafts it went to the sent item so I'm just gonna pick that one and I'm gonna go ahead and accept it so I'm gonna say it's been accepted and now it goes into the accepted and now it's just waiting for the invoice to populate it on the invoice so there it is we can also take a look at the contact drop down and look at all contacts and we have our new customer number 10 we said and if I look at it that way and check it out we've got our info on the quote down below so then we imagine the day comes and the customer number 10 comes in for for or or now what we're gonna do is also collect a down payment I should say so we're still saying okay now we want the down payment to lock in the fact that we're gonna have the equipment for you so now we're gonna collect the payment so I'm gonna say drop down and we're gonna say receive money I'm not making the receive money form from from the quote yet because this is a pre payment that we're putting in place and we can put the pre payment into if it's going directly into the checking account but we might have that same issue if they're paying us cash or something like that or if we have a payment processor that we're gonna put it into the clearing account so I'll put it into the clearing account as has been our practice and I'm gonna say next and we're gonna say this is gonna come from customer 10 customer 10 and Feb 27 again Feb 27 and alright and then I'm not gonna put any items we're just gonna say this is the down payment on estimate and I'm gonna say that I'm just making up the number but we might in practice say it's some percentage of whatever the quote would be that they made and then I'm gonna say that it's gonna the other side of this is going to go to unearned revenue and I want to make sure before I do that the drop down I want to make sure that I make this a pre payment because that will help us to track it just like we did for the other pre payment examples in prior presentation so I'm gonna make it a pre payment because we're not earning the revenue yet because we have not yet done the work what I would like to do is put it into a liability account if you haven't set one up you could set you would set one up as a liability that's not a light this is should be unearned revenue where did it go I'll just type it in here and there it is so I put it in here at 225 unearned revenue other current liability account so we're gonna collect that $200 so what's this gonna do it's gonna increase the cash account but it's going to go into the clearing account and then we're gonna the other side's gonna go to this unearned revenue account here a liability account and it's gonna track the fact that it was received from customer number one so that when they come in for the rental we can create the invoice and apply this credit payment to it this pre payment this deposit to it all right so let's save it and and check that whole process out saving it here and I did that in the balance sheet tab why did I do that I don't know accounting drop down let's open the balance sheet back up get your head in the game man crying out loud hit the drop down and we're gonna say custom date bringing it on back to 2023 or forward to 2023 update it okay so there's the 200 in the clearing account here so that looks good the other side going to a liability account which is unearned revenue so it's at 650 if I go into it then we could scroll down and this is where zero shines and tracking this liability account and still being able to connect it to a customer even though we're looking at a liability account so now I'd like to be able to assign that to a particular customer when I'm doing my internal bookkeeping and usually I have to it's it's assigned to an accounts receivable to do that but but zero has a nice system so if I go to the tab to the left and I select my business drop down and I go to and I go to my invoices for example and then I go to a waiting payment I can see my credit amount right here so it's ready to be paid with a little yellow that means it's like an overpayment that's going to be applied out or I can go to my contacts all contacts and I can see that in customer 10 so when the customer comes in I can go to customer 10 and I can say okay I see what happened here you had a prepayment and then you've got the quote right and so the next thing that's going to happen is we make the invoice and apply the prepayment to it which zero has a nice capacity to connect out even though we're using unearned revenue instead of the accounts receivable account all right so we'll actually do the invoice in a future presentation for now let's do that last step on the deposit side so if I go over here we've got this amount in the clearing account and so now I'm just going to I'm going to take it out of the clearing account and we're going to transfer it into the checking account noting that as I do this let's first go into this this clearing account just to see you can see what's been going on with it here so it's a clearing account so it's been going up and then it's been going you know back down to zero on a periodic basis that's the idea or that's the concept behind the clearing account so now it went up by the 200 again it's going to go back down to zero now note that usually the reason we have the clearing account is because we want to be able to group things properly when they go into the checking account in the same format that will be shown as the deposit grouping in the actual bank which will be reflected on the bank statement possibly through the bank feeds now in this case we only have one deposit so we could have possibly made this deposit go directly into the checking account without any problem because we're not grouping it with any other payment but if it's our normal system to go through the clearing account because sometimes we might group them we just didn't happen to have anything to group them with you might just want to keep consistent with the same kind of method that you're using because that'll become a routine method so now I'm going to say it's the end of the day we only have that $200 or whatever and I'm going to transfer that into the checking account in the same format as we'll be going into the actual bank account physically so I'm going to hit the drop down I'm going to do that with a transfer form as we have seen in the past it's going to be let's see if I can get this right this time it's going out of the clearing account and it's going into the checking account and we're doing this as of Feb 27 Feb 27 that's the day that everything happens and it's going to be for $200 I'll just call it a deposit and so it's from the clearing account to the checking account that's it save it transfer it close it greenify green button it and then tab into the right update and the the other clearing account is gone going into the checking account just to double check the checking double check the checking and we're going to say that we have that transfer happening increase in the checking just as it should okay so let's go back on up that's all we'll do this time we'll continue on with the next step of the saga of the band rental next time when they come into the shop and actually we enter the invoice and we apply the credit to it and rent the equipment so we're going to go to the accounting drop down and we're going to go to then the reports let's type in trial balance trial balance and let's go then to the drop down we're going to look at custom date end of 2023 the end of it update it there we have it so if your numbers tie it out to these numbers great if not it might be a date range issue if something is off and you were on the last time after the last presentation and you're following along the things we changed the clearing account went up and back down that's why it's gone and then the checking account is something that we changed and I think that's it because we just had an estimate so we haven't entered another invoice so everything else is the same so if something's off you can you can change the range drill down on it see if it's a form issue drill down on the form the source document and make any adjustments necessary