 Zero Accounting Software 2023, credit card reconciliation for month number two and month number three. Get ready to become an accountant hero with zero two thousand twenty three. 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. 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 purchase and use ourselves Bayer dynamic. Not sure if I said that right but this is the DT 770 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. 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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. Students which are well organized have other resources like excel files and PDF files to download and no commercials. We're going to duplicate those tabs to put our favorite reports in right clicking the tab up top to duplicate it and then we'll right click the tab again and duplicate the duplication back to the tab to the middle opening up the famous balance sheet report tabbing to the right hitting the drop down hitting the income statement report up for this one and then we'll change our range on the income statement. Let's just do the whole year of 2022 on the income statement and then we'll change our range more specifically on the balance sheet. So I'm going to go from Jan 2022 to December 2022 the 31st of it and update it and then to the balance sheet I'm going to now be reconciling for the period end of September. So that's our next reconciliation date. Let's actually by the way let's do it this way let's let's let's put three months next to each other. So I'm going to do a custom date range to do that and I'm going to go to the drop down and let's go to actually October the end of October and then use zero's really cool date edit layout field down here to bring in the prior two months as well and to do that I'm just going to say add a field up top and I want it to be a date field and so on the date I want to bring this one back to September and so there it is so September looks good let's add another one another date field and let's do it with a date up top and this one's going to be for August August so now we've got the current October September and August okay and so let's update it and then we've got this super cool report that shows the credit card balances lined up for October September and August. Now last time we did a reconciliation for August the first bank reconciliation which is really the only one that causes problems oftentimes with a credit card because you might have that beginning balance issue that you have to deal with once we do that then our balances are usually pretty on target so if I go into August there's the 522.71 and there's the balance 522.71 there is no difference because we don't have any outstanding checks and deposits because we constructed our books directly from the bank feeds let's actually open the bank reconciliation report now right click it on the tab to the right duplicating it and then we'll go to the accounting drop down and into the reports and let's open up a bank reconciliation bank reconciliation wreck bank wreck and so we're now going to be doing this for the following month so let's first take a look at that month we'll say drop down let's go to the 2022 bring it back to August and the 31st and then we're going to go to let's actually do the 1st of August and then to the 31st July August 2022 31st and then this is for the credit card and the tricky thing here is you just got to make sure you put a negative for the credit card so 522.71 so negative negative 522.71 and there we have it we reconciled everything so we don't have anything outstanding at this point in time and so the two things match it should be the way it should go basically going forward let's do the same report I'm going to copy it right click and duplicate it for the month of September so I'm going to go and say now let's do August September 1st to September 30th and now I'm going to change the balance to be this is October September 717.22 so negative negative 717.22 and update that report so there we have it and notice it should basically tie out pretty much automatically now because we don't have that same beginning balance problem so this is the amount from the balance sheet here's the amount from the balance sheet if I go back on over credit card 717.22 and we're going to say September 717.22 and that's the amount on the books as well so everything ties out let's go to the first tab just to look at the bank reconciliation process if I go to the accounting drop down and we go into the bank accounts then we could say all right let's go into the credit card and see what has happened so the account transactions this is what we have entered that is related to the credit card but we constructed all these transactions directly from the credit card bank feeds all except this beginning balance entry once we have this entry in if everything else is being constructed directly from the bank feeds everything should be good to go we should be basically reconciled you can see the first tab over here there is nothing more to reconcile we've pulled everything into our system this is the process of reconciling and if we looked at our balances as of the current time frame we might tie out to this balance but you really want to oftentimes just look at it on the balance sheet and every period basically tie it out you still kind of want to check this check the reconciliation which you might be able to do as easily as checking the ending balance at this point in time because there's no outstanding checks and deposits being but doing that doing a reconciliation formally looking at the report will help you to have errors that could come up from somehow getting two things input into the system two transactions recorded twice for example or a transaction that was missed if that happens then of course our balance will be thrown off and we can use our bank reconciliation skills to determine which balance is missing or or or duplicated so if I go back then to the account transactions tab then I could check all these off if I had a problem with this I can go into here and say okay this is all the stuff that happened in September so I can check this off side by side I could put these side by side there's the 8445 right and I can say September there's the 8445 the 119 31 the 3499 the 1197 and the 21926 should be over here as well having trouble going back and forth so so there's the 8449 the 119 31 the 3499 and the 1197 the 21926 and then the payment of the 275 47 which ties out to the payment of the 275 47 over here and that's why basically everything is reconciled we don't need to do anything else in order to see that reconciliation process it's basically taken care of for us let's just do the last one so our report then here shows the balance in zero and then no outstanding items which ties out to the calculated bank balance and there's no discrepancy now let's just do the last report just to see the last one if I right click and duplicate this again then we can take a look at this for October October 1st to October 31st and then I'm going to say that this is going to be the ending balance of 900 95 so negative 900 0.95 update and once again we should tie out because we brought everything it should be that that easy right we're just we've been doing the reconciliation as we go because we could be creating our books from the bank feeds and we don't have the beginning balance issue so there's the 995 which is on the balance sheet which is the the balance sheet over here 995 right there and there's no outstanding checks or deposits or inflows or outflows and therefore our bank balance ties out to our statement balance if I go to the first tab just to verify that I can go to my reconciling tab because this is the last reconciliation you would think that this would tie out to the statement at this point the 995 or tie out to your running balance because this is going to be kind of updated as you you know add the data as you reconciling not always like the end of the period see its statement balance as of October 11th it might better be called bank balance I would think of it as because a statement balance kind of indicates that you're talking about a month monthly statement as of a point in time when the when the statement ends and this is kind of a running balance but it's the bank side of things is the idea if I go to the accounting transactions and I was trying to take all this stuff off these are all the reconciled transactions that happened in October we had Costco we had 60 153 96 and we had the the payment of the 309 96 that should tie out over here where we have let's do this should be open this way this tab should be over here so so so there we have the 280 the 60 the 153 96 and the 309 96 so that's that's how you check everything off right here's the first bank rec where we had this activity we had to add the $1000 then the ending balance the 522 71 will be the beginning balance of the next bank statement that's why it's useful to think of these as bank statements to look at the actual bank statements which are monthly bank statements because that gives you a very distinct set point of the beginning balance and the ending balance so that you can tie out what is the beginning balance this is where I stood before that was the beginning balance here's the activity increases and decreases to get to the ending balance if you don't use those distinct dates then it gets a little confusing if something gets off balance to try to figure out because because you're kind of floating in the middle of a period right you need to you need to if you actually look at the statements then it'll give you a distinct beginning and ending balance that ending balance is now 717 22 is the beginning balance for October and then we have all the activity that was pulled in from the bank feeds and because we pulled them in from the bank feeds and used the zero system to pull them from the bank feeds into the financial statements we of course don't have any outstanding items so our reconciliation report is quite bland quite boring which is fine because it should be quite easy as well so after we do a couple more transactions on the bank checking account side of things we'll do a similar process for the checking account but the checking account is often for many companies a little bit more difficult because you may indeed have some outstanding payments or outstanding receipts even if using electronic transfers you could have some systems where you don't where it's really easy still and it would be a similar process but you could also have some systems where you do have some outstanding items those would be systems in which you had to do some accrual component you had to record the receipt of the payment or the recording of of the payment are in advance and then match it to the zero system using the bank feeds or you'll certainly have outstanding items you would think if you actually write physical checks because then you're going to have that extended period of time that the check will be outstanding likely than having an outstanding reconciling item for the bank reconciliation so we'll talk about those in future presentations