 Zero Accounting Software 2023 Bake Rules. Split expense into two accounts and tracking categories. Get ready to become an Accountant Hero with Zero 2023. Here we are in our Custom Zero homepage, 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 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. Here we have a Western Digital WD Elements 20TB USB 3.0 Desktop External Hard Drive. We use as part of our backup system, noting that if you lower the number of terabytes of storage the price will lower dramatically as well. When you're thinking about a backup system, you're usually thinking about an online system or an external hard drive system like this or ideally some combination between the two giving you some redundancy. You can also work directly from an external hard drive like this but there are some drawbacks to doing that one being if you use this as your primary drive you're working from, it's no longer a backup drive and you're gonna need a backup system possibly another external hard drive and or some kind of cloud backup system. And if you're working on something that takes up a lot of short-term memory, a lot of RAM as you're working on it such as video editing the external hard drive can slow up the system. So you might wanna come up with some kind of system where you download the project you're working on to your computer, to your C drive or possibly to a solid state drive which is a much more expensive external hard drive as you do the work once the work is done then save the project to an external hard drive such as this. 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. We're gonna duplicate those tabs to put our reports in right click it on the tab up top and duplicating it. We're gonna right click on the tab up top and duplicate again. Let's go back to that middle tab and open up our favorite reports the accounting dropdown and the balance sheet. Tab into the right the other favorite report accounting dropdown and the income statement you never get tired you never get tired of the favorites, right? You can play them over and over again and then people try to force you to watch some new thing like a Disney movie or something you're like no, no, that's trash. I'm sticking with the good stuff man I'm sticking with the fit and we're gonna hit the January to December of 2023 22 that is and updating. Let's go back to the first tab now back to the first tab and go to the account dropdown and we're looking at the bank accounts. We're putting in our more sophisticated rules this time we've got our bank feeds in place we're looking at our checking account and let's look at the reconcile tab. We've been constructing our financial statements from the information through the bank feeds as much as we can using normally fairly straight forward rules such as we're paying the gas company or something so we've got whatever the SoCal gas company for example goes to the account of gas expense or utilities but sometimes it's more complex than that this time we're gonna imagine that we want to be breaking out an expense to two separate categories now this could happen for a couple different reasons for example you might be in a system where you have two locations, two different locations and your expenses you would like to say well I'm paying this bill but I wanna be breaking that bill out on a percentage basis for the two locations you might have that if sometimes it comes into play if you have a not-for-profit organization where you might be breaking your expenses out to not profit categorizations for like a form of class tracking type of thing or I should say kind of like fund accounting type of thing so what we would like to do then is we're gonna go to it I'm gonna go to the tab to the right and we're gonna imagine that we have some expenses on the income statement and what we would like to do is break out the expenses we're gonna do it in two ways we're gonna make one two separate accounts which we're gonna imagine are broken out by location and we'll also see if we can make two categories tracking categories that will be on the income statement up top so we can break it out that way as well and then we can use our super cool edit layout tab over here to expand or collapse or format further our reports now we added the tracking categories in a prior presentation just let's just recap on how to do that let's go to the first tab if you wanted to add those tracking categories accounting drop down advanced stuff we're going into the advanced not too bad but it is advanced we're going into the range of the expert here so we're going into we had the tracking categories if you add a location or a tracking category here then the top part is the tracking category name and then you can put multiple things that you're tracking under that category name for us we have the locations I'm just gonna say location one, location two and then I have NA or not applicable neither location I want to be able to assign a location to every every transaction if I'm using this kind of strategy usually because that will allow me to kind of catch errors oftentimes if I wanted to add another category I can add another one which would give us another tab over here but that's the general outline with those categories now let's add some accounts to our chart of accounts accounting drop down I'm going to go into the chart of the accounts I'm going to add new two new accounts which are just going to be test accounts they're going to be expenses let's go over to the expense side just to make it a little bit easier to see and I'm going to make another one this is calling it six zero six zero let's say six zero six zero add an account it's going to be called six oh six oh and it's going to be an expense type of an account and the name is simply going to be test test expense expense so test expense and I'm going to put location one and then I'm going to make another one six oh six five test expense location two so I'm going to save that and let's add another one add another thank you may I have another six oh six five it's going to be an expense and it's going to be test expense location two and we will add that one so now if I scroll down we've got these two locations when I add information to these items they will show up on the income statement as two separate locations right we're going to start putting things in here two separate locations which I can then group together using my edit layout and make a subcategory for them and I can also break them out by category location up top so we're actually going to do double duty having them broke out by account and by tracking category and then that gives us like a double check a double verification and then we can modify that format for external reporting purposes all right let me show you what I mean we're going to go to the first tab let's go to the bank rule side of things and accounting drop down back into the bank accounts and let's go into the checking account to check it out I'm going to go into the reconcile on the reconcile and let's go down to those items that I've added a couple items down here so I just added these market daily market items so let's say we need to break these out by location let's do it we're going to do it like 60 40 so I'm going to hit the drop down let's make a rule for it create a rule and it's going to be a creative rule a created we're going to create a creative rule so at least a little bit more creative it's going to be any conditions met okay so I'm going to hit the drop down we want to say any text this part is the same as our other rules if it has daily market in it you want you want that I'm going to make a new vendor just like we normally would for that all right and then down here and we have our percentage breakout now note you could break out by dollar amount up top which might be useful so like this could be useful for example if you want to make a breakout that's going to be a fixed dollar amount to a particular account and possibly the rest of it goes to another account over a certain threshold or something like that but I think oftentimes it's more likely that you can have the percent breakout down here and you can say this is the expense that I'm breaking out you know 60 40 by location so I can I can do that nicely down here and say this is going to be the test expense test expense location one and I'm also added the location field this will only be here if we added those location tracking and I'm going to say this is 60 what I'm going to say hold on a sec location one and then the percent is 60 and then location and then I'll add a new here and then we want location test expense location two and this will be going to location two and this of course will be the 40 and that should add up to 100% so we've we've done double duty here meaning we're breaking it out both by two separate accounts and by two separate locations which will break it out by column that'll give us a double check verification and then we can modify our reports if we want to do that although you don't need to do both you might just use the location tracking which would break out by column so I'll show you that in a second so we'll say I'll set the drop down I'll say the reference I'm going to say this applies to all accounts and save it all right let's go ahead and add these in so I'll go through and say let's say this one looks good the rule has been applied and movie B to the end so so here's all the rules been applied to all of these items all right so I'll just add those in very nice movie being all right so then I'm going to go to the balance sheet and update these of course would decrease the checking account but the more interesting component we're going to be looking at is the income statement so here's our income statement now if you just turned on the class tracking or the tracking categories then you're going to want to refresh the screen with this button or possibly simply open up another income statement and you should be able to see then a new field up top your filtering field so now we can go into our filtering field I can update the report filter the fields and I often would select all of these and select all of them and say okay update and okay there it goes so now we have it here so now I've got location one location two and unassigned so if I scroll down to these items there they are there's location one location two so we've done this is what I mean by the double duty the double verification we put everything in location one and track them both by the account location one and by the category of location one in a separate column everything in location two is tracked by account and by category and nothing has been unassigned and that's why I would always have everything assigned to every transaction if I can for most purposes of using this so that if anything is unassigned you can drill down on whatever is unassigned and properly assign it out also if I had something safe in here that wouldn't make any sense because now it's in location one by account but location two up top so it looks like there'd be an error in data input which I can easily see with this kind of double check factor and I can properly put it into the proper account so you don't really need to do that double verification it would probably be the easiest to remove the two accounts if you don't want to do that and just break out by the locations up top that's another format you can do that's probably better than breaking out by these two locations because it's often useful to see everything by column so you can see the subtotals if you're breaking everything out by location now I can also add subcategories to these locations by going to the edit layout tab down here and grouping them this is and notice up top the structure that zero has put in place you can adjust the structure by adding and deleting columns if you so choose so I'm gonna go down and say I could select this one hold down control and select this one make a group I'm gonna group them and then I'm gonna call that group just call it test expenses and so tab out of that and so now it put it into a group I can collapse the group but let's first see it in a grouped format so I can update this and now my report has more detail in it this would be similar to subcategories and like a quick books online but it actually gives you a lot more flexibility really so now it breaks out here so now I can still see it by location in both ways and it gives me my totals and the total over here for both of them in the total column now this might be good for internal purposes for me to double check those and then I can collapse this category for external reporting so I can just break it out by the locations up top by going to the edit tab and then I can say let's go ahead and collapse this and then update and so now for external reporting I just have those two broken out up top and now I can see the test that's the income item down here the test expense in one line item broken out by the two locations so pretty neat the bank rules now the bank rule will apply going forward and you can kind of automate everything in that format with a little bit more complexity and the bank rules added in multiple accounts and your tracking options by column note that you can also track that location tracking on the balance sheet but the balance sheet gets a little bit more tricky and the default is to filter each column so I can filter like just location one and you can filter each column but usually people are thinking of the income statement when they use this tool also note that you might be able to adjust a column by column breakout using that this layout tool adding another column but I don't want to get too far into that right now because that's not really our point of focus most of the time when you're using this this kind of a tool you're generally focused on the breaking the income statement out performance statement by column such as location or department or whatever