 Zero Accounting Software 2023 Bank Reconciliation Month Number 2 Deposits. Get ready to become an Accounting Hero with Zero 2023. 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, 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. 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Courses which are well organized have other resources like Excel files and PDF files to download and no commercials. Here we are 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 some tabs to put reports in like we do every time. Duplicating a couple extra tabs here so we can put two bank reconciliation reports in. One for the prior month we worked on, one for the current month we are working on. Right-clicking and duplicating the tab, we're going to right-click the duplicated tab and duplicate it again. We're going to right-click the duplicated tab and duplicate it again. We're going to right-click the duplicated tab and duplicate it again. That's a lot of duplications. We're multiplying like crazy, like rabbits over here. Let's go back to the second tab and we're going to go to the Accounting drop-down. We're going to go into the Balance sheet type of report. Go to the tab to the right, Accounting drop-down, Income statement type of report. I'm looking at a comparative income statement but you can open the standard one if you'd like. Tabbing to the right, Accounting drop-down. Let's open the reports area so we can search for the bank reconciliation. Opening that up, I'm going to tab to the right as it's thinking and I'm going to open up another bank reconciliation. Accounting drop-down. Let's go to the reports and type in once again the bank reconciliation. There we have it. Now let's do some date formatting here. We're going to do the second bank reconciliation for the month of February. We can hit the drop-down here. I'm going to say this is going to be Feb 1st to Feb 28, Feb 1, Feb 28. Then I'm going to say this is going to be the checking account. I'm going to pull the balance in from our bank statement, which is our Feb bank statement. We'll take a look at it in a second, 101.590.05. So 101.590.05. Then we'll update that. Here we have that information. I'm going to tab to the left. I'm going to open up a bank reconciliation report for January or create that, which is the one we did last time. I'm going to hit the drop-down here and make this Jan 1 to Jan 31. Let's see if I can see the whole thing. This is going to be a checking account. Then this was January's ending balance, 6124185. So 6161241.85. I think I got that right, updating it. We can check this one because it should be in balance. It is, so it's in balance. That looks good. Let's tab to the left. The income statement looks good properly formatted on the dates tab into the left balance sheet. Let's make this as of January, dropping it down, customizing it, January in it, and then 31st in it, and then updating it. Alright then. So this is what we had last time where we had our ending balance here. We reconciled it dealing with that first bank reconciliation issue, which we won't have in the second bank reconciliation. So this reconciliation should be closer to like our normal kind of bank rec process that we should have going forward. I'm going to go to the tab to the right. You can see that we reconciled here for the bank reconciliation. Now we're going to go to the tab to the right. This is the second bank reconciliation showing the date of 9577, the amount, 9577906. This is the balance on our books as of the cutoff date of February. Let's adjust our balance sheet now. Let's see if I can do a side-by-side balance sheet so I can see January and February doing a comparative balance sheet. So I'm going to say let's layout and customize this balance sheet comparative. Let's just say comparative and I'm going to add a column to it. And I want to say just a date column. And I'm going to say this is FEB. So this is the month of FEB. There we have it. And so I'm going to update that. And so now we've got FEB, which is at 9577906. That's showing 9577906. So we can see once again the construction of our bank reconciliation as we go. Now here's our actual bank statement. The bank statement now having 101-590-05, which of course is not the same as what we saw in our books because of timing differences. That's why we're going to have to do a bank reconciliation. What is nice here is that this beginning balance is the same amount as the ending balance of the January bank statement. Therefore, once we have one item in balance, we're not going to have any of that beginning balance issue going forward. Therefore, the bank reconciliation process will be much easier. All right, let's go to the first tab now. And I'm going to go to the Accounting drop-down. We're going to go into the bank accounts. And let's go back into our banking data for the checking account drop-down here. Let's go into account transactions and noting that in our account transactions on the right, we have stuff that happened in February, but we don't have any bank data as of yet for the month of February. So we're going to go ahead, since we're not connected to the bank, I'm going to upload the data so that we have it in the system like zero really wants to see it. So we can get that full feel of having it in the system. So I'm going to put our information into our Excel worksheet, just like we did last time. You could do this. This is similar to us downloading the data from the bank or connecting to the bank feeds. So note that when we do that, we don't have the beginning balances here. What we have is just the activity from the bank statement, but that's all we want. We want the activity because what we're trying to reconcile is from the last beginning balance to this current ending balance. If you want to make your own just for testing out, you can type this into Excel, for example, and then you would need to save it as a CSV file. So I'm going to do that now. I'm going to say file and save as browse. And I'm going to save it as a CSV. I'm going to change the file type to a CSV comma deliminated file and then save it. So now if I close this out and I check it out over here, now I can see the difference between these two. This is the comma deliminated one, which I can now add or upload to zero. So let's do that now. So I'm going to go back on over here and say manage the account. And I'm going to say we want to import a statement. Import a statement and we're going to say it needs to be these file types. So we have a CSV file. So that one should be good to go. So I'm going to say let's upload a file and we're going to say this is Feb transactions. Notice it gives you the last transaction that was entered. I think it's trying to help you not to upload duplicate data. That's why that's kind of there. So you can see what the last transaction was so you can start at the right point if you're downloading this information from your bank. February bank transaction boom. And there we have it. Let's go next. And then I'm just going to say the date field is the date field the amount amount payee payee description description reference check number check number. Looks like everything is is matching up the way it should in terms of the columns from our sheet to what zero has which should be the case because we got our column headings from zero. Let's go ahead and say next. And so I think that looks good. So let's go ahead and say complete the import poor favor. And it should pull that stuff in. Now I have if I go to my Trent my reconciliation tab. I've got my comparison between the banking information and what we have put in the system. And in my bank statement tab. I now have the information not just for January but also February that we uploaded into the system or February is on top. And then in the account transactions nothing new is happening here. We already had this in the system. So we didn't actually record anything by uploading that data. We just uploaded it to match what's in the system. Now if we were constructing our books from the bank data this would be similar to us connecting to the bank feeds and we wouldn't have anything on our transactions for February. But only these transactions and then we would then we would we would record our books you know based on that which will do in a future course or section we might spend some more time on that. Now we're just going to do the deposits. So we'll do this one at a time. I'm just going to match out the deposits over here and then we'll do the checks next time. Remembering that we're always going to basically go from the bank statement to the books. So notice that in our bank statement this number when I'm trying to reconcile is good. That one's been cleared because that's our beginning balance. No problem. Now I'm just going to go from our deposits which normally we have a dollar amount and a date that is relevant. If you had electronic transfers you may also have bank text or memos that will help you to kind of tie everything out noting that if you deposited everything properly using a proper clearing account you shouldn't have to add things together when doing the bank reconciliation in order to reconcile. If you do that means that your accounting system probably is not optimal and you can need to use a clearing account or you need to figure out a system so that the deposits you make into your checking account are grouped in the same format as the deposits going into the bank. Possibly being an issue because of intermediary platforms like PayPal's like Stripes like the credit card company or cash that you're grouping together. So you want to come up with a system that we've talked about in prior presentations. Okay so there's the 3470 something. So 3472 so we put it in the books on this is one that didn't clear in January. So that's when I just want to point out over here this in January here this 3472 was outstanding and now it's clearing in February. That doesn't mean this bank reconciliation report it's going to disappear from here it's still outstanding as of the end of January. But if I look at this bank reconciliation report I have outstanding receipts here that it's going to be not outstanding for February. So it's going to pull out of this area as a non outstanding item. All right so let's do it and say let's say OK. And then if I go back on over here just to note this it's still outstanding as of January right it's still the outstanding item. But in February it has now cleared so it's not outstanding it's not a differential factor in February between the book balance and the bank balance. Okay back to the tab to the right then I can greenify this greenify this 121250. So back over here it's easier with two monitors but whatever 12250 12250 not 121250 this one I wrote in February and then it cleared a little bit later so they cleared in the same month. So I'm going to say OK got it and then greenify and then greenify 450870. Okay 450870 so there's that one so we wrote it on the 20th it cleared on the 23rd that makes sense. Okay and then we got seven let's see if I can do these at the same time 750 and 400. It's going to strain my memory but there's the 750 there's nothing that's tying out to the 750 that's kind of annoying. I would think there should be but the 400 we have here so let's pick up the 400 that's good. All right back on over 400 has been picked up. Okay so now we have this 750 so the question is what is going on you know with this 750. Now we could go to the match here and try to see if I can match it up to some other transactions. Let's just get an idea of what's happening when we match it though if I if I go up top and say OK what do we have here this is comparing the books and the banks. What I have here is the bank data. So in the bank data I have the 750 right. I have the 750 that's unreconciled on the account transactions. This is our book data. This was where it is not here. I'm going to sort everything so February is on top here. So I'm going to say right February is on top and then see OK what's going on with these deposits and I can see down here. Notice that I have these three items that add up to 750 quite coincidentally right. I've got 203456750 all unreconciled. So what possibly happened at this point in time is that when when I recorded the deposits for sales that have happened or receives of the invoice. I recorded each of them individually but possibly they hit the bank as one lump sum of 750. Why might that be the case possibly because some kind of intermediary processor. The bank the PayPal's the stripes the credit cards of the world or possibly cash deposits. I grouped the cash together and deposited the three payments I received in one lump sum. That would all result in one lump sum on the bank and three numbers in our account adding to the same amount. Now again I can fix that over here and I can say well that's not a problem. I can go over here and I can just add those up but I shouldn't have to right. I want the bank reconciliation to be as easy as possible. So we'll do that here. We'll add them up but if you find yourself doing that all the time on the bank reconciliation your accounting is messed up. What you want to do is make the accounting such a way that you're just going to end up with some green buttons over here to click off because everything matches up because you don't have to add up numbers because you're using a clearing account or doing whatever you need to do. To tie everything out properly. Alright so to find that match here I can say okay it's on the bank side it's not on the book side I'm going to match it and combine these things together. So I'm going to say here's the one I want this one this one and this one which are going to tie out to the 750 so that should match out. So then I'm going to scroll down and say okay reconcile. And so it pulls that match in place. So if I go back on over we can say alright 750 has been matched out we're good to go. So that means on the deposit side we have checked everything off. So if I go back on up then if I look at the bank statement tab we've checked off many or all of the deposits in February for the bank statement because if it's on the bank side. It should be in our book side and if it's not we should probably are going to need to enter it in our books. This one however we entered in our books in January but it cleared in February so we're still able to check it off. If I go to the account transactions over here then we still may have some deposits that were in February that are unreconciled and that possibly is okay because those are our outstanding items. So these are going to be the things that are creating our reports. If I go to my bank reconciliation reports and I really like that you can open multiple bank reconciliation reports and change them as you go for instructional purposes it works quite well for that. But in any case you have the January didn't change. There's the 3407250 here it's still outstanding even though that deposit again did clear over here in the February statement. So in February we now have the balance per the books 9577906 ties out over here on the balance sheet and then we've got the outstanding payments that we'll talk about next time. So we've got the outstanding receipts which is that 200260 which I can see down here there's the 2006 and another 200 these two deposits it looks like have not yet cleared and we can double check them to see if they cleared in March. And if they did then they would be legitimate outstanding items a different from the difference from the bank books to our books as of the cutoff date of February 28.