 Zero Accounting Software 2023, bills, enter, sort, and pay. 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 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. Acer 27-inch monitor. I've been using an Acer monitor as my primary monitor for a few years now. This is the first Acer monitor that I have used after having used a series of different brands of monitors in the past. The Acer monitor has been performing well, and I'm trusting the Acer brand more and more as I use the monitor. I have a 27-inch monitor, which I think is ideal for what I do, which is, of course, the screen recording and the editing. 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. 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 that being get great guitars, duplicating some tabs to put reports in like we do every time. Right-click in the tab up top so we can duplicate it. Right-click in the tab up top so we can duplicate it again. Back to the tab to the middle, Accounting drop-down. We're opening the balance sheet, the slightly modified balance sheet that we made in the prior presentation. If you don't have that, you can open the standard balance sheet. Tab into the right, Accounting drop-down. This time the income statement. We're going to look at the comparative income statement. Again, if you don't have that, that's okay. You can use the standard income statement. The dates look good here. The date looks good there. Alright, let's go to the first tab then. We're going to be entering the month-end type of bill transactions that are typical to a business. The cyclical kind of bills that come around, such as the telephone bill, the utility bill, and so on. Last time we did this, we wrote it with just a check type of form as the bill became due, which is often what small businesses will do. This time, however, we want to enter it as an accounts payable, so we can practice that added step of tracking the accounts payable. Let's open up our flowcharts to get an idea of the flow. This is a QuickBooks desktop screenshot of the flowchart on the home page. We're just using it, however, to look at the accounting flow of the forms, which will be basically the same no matter what kind of software or system that we are using. We're looking at the vendor side of things. At the end of the vendor side of things, we expect whether using cash or a cruel basis, cash will be going out of the company, so we can be purchasing goods, services, or assets like inventory and fixed assets that will be used to generate revenue either now and or in the future. Now, notice that the vendor side for normal kind of expenses is usually the area where the bank feeds can save the most amount of time for many small businesses because oftentimes we're paying those more and more on an electronic kind of basis and we can set up auto payments and that kind of stuff as the bills come around and we can wait until the bills actually clear our bank, use the bank feeds to record the decrease to the checking account in our system and have the other side go to the expense account like utilities, telephone, and so on and so forth. That's the easiest thing to do, which would be great if you're in a system where you can do that. However, if you're in a system where you're going to be tracking the accounts payable, which is often the case when you get to larger types of businesses, because the cash management strategy is going to be more and more important or if you're in a situation with a small business where you're really tight on cash and you're really cutting it close in terms of your cash management. But as a company gets larger, it makes a bigger difference if we pay either today or 15 days from now because either the amount of payments that we're making are large dollar amounts or and or we're making a whole lot of different payments. So if you have thousands of payments that you're making each day, that $15 difference of paying today or 15 days from now becomes relevant to the point where you want to really kind of track your accounts payable and try to pay them as late as possible as long as you're not annoying your vendors. Okay, so that's what we're going to do this time. We're going to enter these items as bills so we can see the tracking of the bills when we enter a bill we are increasing accounts payable and then we will pay the bill. Now as we do this, remember that the bill form is not the same thing as a physical bill. When I get the physical bill say from Verizon telephone company, I call that a bill just a normal parlance even accounting terms that we have received to the distributor of the bill. They might call it an invoice from our but you know it's a bill or an invoice. It depends on which side of the table we are on. You can call it either one. We got invoice, we got billed, right? Typically we'll say we got billed but we can pay that bill by not entering a bill into our accounting system but rather just writing a check into the system. So the bill form in our accounting system is something different than the physical bill. If I take that physical bill and enter it into the data input bill form, that means that we're going to be increasing accounts payable as opposed to if I take the bill paper form and just pay it with a check or a money out electronic transfer at that time. I'm not entering a bill into the system. I'm entering a payment, a check into the system. So then we have the pay bill. When we pay the bill we are paying it in essence with a check type form or a money out form which is a normal kind of outgoing form. However, every time we're paying off the bills we know that the other side of the transaction will be a decrease to accounts payable and that's useful to note if I'm trying to drill back down on the data. Alright, that said, let's go back in here. Let's go to the first tab and we can enter the bills with the plus dropdown. We can go into the bill form, bill form increase in the accounts payable and the first one I'm going to say is going to go to Verizon. And so we're going to say that happened on let's say 228, 228, Feb 28 and then the due date. Note that the due date obviously is more likely something that we're going to have to populate manually into the system because it'll be dependent upon the due date basically that's on the bill as opposed to when we invoice where we're making the due date and we might make it a standard 30 days from the date of the invoice for example. Alright, so I'm going to tab through this and notice that down here nothing is populating thus far. It's not really memorizing the last transaction because we're using a bill versus a check but also note that if you wanted it to memorize the account that's going to go to then you might go into the Verizon contact and put the contact account so that the account will populate automatically and that could save some time. But we're not going to have an item because we're not purchasing inventory and then so we're just going to put the amount down below. I'm just going to say 1 and 300 let's just say it was for 360, 360 and that's just a cool number because you did a 360 degree turn on the skateboard or something. The 360. Alright, so then in any case focus here we're going to say the account is going to go to the telephone account that we set up in a prior presentation. Notice now that we're in the second month of operations these accounts should already be set up and we want to make sure that we're not adding new accounts so that we have multiple accounts that basically are different versions of telephone like the telephone or under utilities or something like that we want to be consistent. Alright, if we do this what's going to happen increase to the bill 360 other side go into the telephone expense and the sub ledger for accounts payable will be impacted increasing Verizon. Let's approve it and check it out. Let's wait till we get the green go ahead. There's the green go ahead. Go to the balance sheet and update the balance sheet scrolling down and we're going down to accounts payable. Let's go into the AP and check it out scrolling down. We have the 360 there that looks good. Let's go back and then to the income statement and update the form scrolling down on the income statement. We've got the telephone. There's the 360 on the telephone and let's open up another report so we can see the sub ledger which is going to give us the breakout of the vendors for the accounts payable. We're breaking out this line item here. So I'm going to go to the tab to the right right click on it duplicate the tab and then we'll go to the accounting drop down and the reports and scroll down. We're looking for the payables and receivables and let's look at the aged payables summary report. The aged payables summary report and so there we have it. And so there we have our two payables here for Fender. That was that new vendor we set up before and Verizon. So that totals up to the three seven two zero which should tie up to the balance sheet three seven two zero. Of course in practice we would probably be tracking internally as we're paying the bills to try to pay them as late as possible as the general strategy here. So if I go to the business drop down and go to the bills to pay we can track our bills this way which would be typical way to do it. So we've got all of them. We've got the drafts. We've got a waiting approval. We've got the awaiting payments. These are the bills that we have entered that have actually entered a transaction into the system which are of course awaiting payment at this point in time and we could select one or multiple of the bills print them. We can add a planned date plan date and then we can make a payment for them which will do in a bit as we do so it'll move over to the paid area. We can also track the bills by contact of course if I go into suppliers let's say the contacts for the people that we owe money to we owe money to Verizon at the three sixty. Now one more note note that like if you're using bank feeds and you're tracking this information and then say you make an electronic payment or something it might be possible to see it clear the bank and then match the bank feed up to the bill which will take it out but often times if you're tracking the bill you're going to be then making the payments and really timing when you're going to be making the payments in which case you're going to make the payment from the bill and then tie that out to the bank feeds which will be part of your bank reconciliation process. Okay let's make another bill another bill another bill and this is going to go to spectrum spectrum. That's going to be our internet service we don't have them yet so we're going to set up a new contact for spectrum. This is going to be on two twenty eight Feb twenty eight Feb twenty eight Feb twenty eight due date. I'll just let it populate itself and then we're we're not having an item because we're not purchasing inventory so it's going to go into spectrum. All right so I'm going to look for an account to see it well let's say the amount let's say the amount first is going to be one one eighty and then I'm going to say a one eighty that's almost as good as a three sixty so well it's half as good when you do the one eighty on the skateboard but any case we're looking to see if there's an account that matches this is a new account we haven't dealt with spectrum before and that's where we pay our internet so did they give us an account that would be good for that we could put it under utilities but I like to break out the internet separately or I could make it a sub account of utilities possibly if I wanted to do that doing that within the formatting of the income statement and zero super cool flexible way of doing that but I want to make another account I'm just going to call it internet expense and I want to put it like maybe close to the telephone so maybe seven six four five let's make one seven six four five code seven six four five seven six is that right I thought they were in the six hundreds let me check it one more time I feel like I dislexified it I feel like the telephone is six seven four five yes you dislexified it six seven four five six seven four five and then this is going to go into the expense category and we're going to call this internet internet which kind of I get mixed up with interest sometimes so I kind of I wish I might come up with a different name but it will keep that internet expense maybe I should say computer slash internet or something so I don't confuse myself but whatever this is going to increase the bill of 180 the other side is going to then go to the internet expense and the sub ledger for spectrum will be increased let's approve it and let's do it over here going to the balance sheet and then we'll update that one and check out the A to the P the accounts to the payable A to the PPP and scrolling down so there we have the 180 it's what I did on my skateboard just a second ago while I was going fast too I was going like 60 miles an hour I did a 180 and just kept going backwards goofy foot to regular to goofy I don't know what anyways down here we've got the internet expense at the 180 and then in the age payable we see that we have the 180 in the spectrum adding up to the 3900 which ties out to what's on the balance sheet in the A to the P 3900 if I go to the first tab and we check out our bills business bills sorting out the bills and we can see that we have the sorting of the bills awaiting payment here we are awaiting the payment all right it's going to have to await a little longer though because we're going to enter another one so let's go let's go to the plus button up top and let's enter another bill this one going to Edison we've dealt with Edison before we've dealt with Edison and they have the power company you have to pay them or they'll electrocute you so we're going to say Feb 28 and they turn off the power and then if you still don't pay them then they come electrocute you so now they don't do that really but any case we're going to say this is going to be one and six forty eight and this one we can decide do I want a separate breakout for my electric bill or do I want to put it into utilities we've decided putting it into utilities is the way to go this is going to increase the bill the other side is going to go to the accounts payable I mean sorry okay this is going to increase the accounts payable because it's a bill other side going to utilities expense and the sub ledger for the vendor of the Edison will be populated all right so let's record it and check it out approve I approve of this bill tab to the right and then we'll update it and scroll on down scroll and down and we're going into the accounts payable and looking at what has been entered in so there's the six forty eight Edison bill back on the income statement tab to the right income statement we now have the bill that has been entered there what was it that was the utilities that has been entered and if I go to the tab to the right we can then update our accounts payable sub ledger Edison we owe them money now so the total by vendor comes out to the four five four eight which ties out to what's on the balance sheet on the payable four five four eight so now if I go to the tab to the left we can decide which of these bills we want to pay so if I hit the drop down we can sort these bills by going to the bill pay which would be our normal process if we're working in the accounts payable department for example and notice how like I have this drop down because I'm zoomed in if I zoom out a little bit that that shows me my format this way so that's the difference of when you zoom in and out the screen changes and what not to try to deal with how zoomed in or out you are in to optimize the stuff on it so if I go in here we can choose you know which ones that we want to pay we can also look at these bills by contact as we saw when we entered that first bill but typically when you're figuring out which bills you want to pay you'd be going into here you would think right and sorting your bills by the date and the due date determining which ones you have to pay to try to pay them as late as possible well at the same time not angering the vendor that you're trying to do business with so that they turn off your electricity and then come electrocute you so we're going to choose that let's just pick that we have to pay spectrum and Verizon we're not even paying Edison because we didn't like the way they threatened us by electrocution so we're not I don't that's I don't I don't succumb to that kind of intimidation but we'll pay them probably tomorrow actually but we'll wait a day on it so then we're going to say then we can make a payment let's go ahead and make a payment and we're going to pay a batch payment we're going to pay by check which is a decrease to the checking account type of form right so we're going to select that item the two have been checked off here check number let's check out the check number now if you're making electronic payments then you don't you're not going to have a check number right if you're paying by check you can you still have the physical checks that would be printed and the check numbers would line up to the physical checks here I'm going to put in a check number because we're going to be doing bank reconciliation in a future course or section and I have check numbers on those so I'm going to try to populate the check number even though I've missed a couple in the past if you don't want to put that number in that's okay and so we're going to say there it is what's this going to do it's going to basically create check or money out type forms for these two payments decreasing the checking account the other side not going to the telephone or the internet expense because we already hit those instead decreasing the accounts payable so this is a special kind of check in that it's always going to be decreasing the accounts payable because that's what we're paying paying off so let's go ahead so we could export checks CSV save and print PDF if we need to print the checks and whatnot but we're just going to save it and record it so there we have it so though so now we still have these two awaiting payment and if I go into the paid items there's the ones that are paid let's check out let's go to the balance sheet now and see kpasso what happened that is checking account is going to go down so if I go into the checking account the checking accounts going down that's down man that's down the checking account going down isn't down that's not good I thought down was good but that's not good because it went down I want the checking account to go up that's that would be down alright alright we have the pay up we have the payable payments here that happened notice that those are different than the spend money forms and that gives you that indication that the other side of a payable payment although it's basically just a spend money form a check type form is going to accounts payable and therefore if you want to drill down on the actual expense that took place you got to go to the bill that was entered because it's going to show you the actual expense account that was hit alright let's go back up and then back to the balance sheet I like the way it recorded that that's down man that's down alright let's go into the accounts payable the A to the P and we can see the normal transactions that happened AP goes up and then it goes back down again that's the normal kind of process we should be able to go in here and kind of tick things off tick tick tick tick they go up they go down boom boom boom with regularity like a clock ticking away so then we're going to go back if I go to the aged payable over here and update it now we have those two items two vendors disappeared because we've paid them we've got the 4008 now tying out to what's on the balance sheet at the 4008 it should be correct and then if I go to the first tab we know if I hit the the drop down for the business and take a look at the bills which were currently in at this time in any case and I look at the awaiting payment we only have these two awaiting payment that we're gonna have to pay soon or Edison will come after you and then in the paid area we've got these two these are the ones that were paid we can also check take a look at these by contact hitting the contact drop down let's just take a look at all the contacts look at all the contacts so then these are the ones that you owe money to in this column so we still owe money to Edison and fender and we paid off some of the other ones like spectrum we paid off let's go into spectrum and just check out the detail here so now we've got the bill that has been paid which we can see populated down below now also just note that like as you enter these into the system you might want to as you add the contacts put the account that you're going to be recording the contacts to and that what that could save you time for data input and make it so you're less likely to hit the wrong account and make multiple accounts so for example in Edison here if I went into the contact and edit the contact and then I go down into the purchase defaults down below and I can then say okay purchase detail and then the purchase account I'm going to say is is utilities right utilities and that way if I save it and close it and then I made another bill in the future plus button and bill and we said this went to Edison Edison then it should one three hundred populate the proper account once we input the numbers in place now notice I'm not going to record this I'm going to say cancel this that if you have bank feeds you can also set up bank feed rules to help you to hit the proper account as well tied out to the vendor which we'll talk about in the future course or section hopefully alright so let's go and take a look at the trustee trial balance tap into the right to do so accounting drop down we want to go into the reports and then type in a trial balance trial balance going into the trustee T to the B trial to the balance and selecting the drop down customize in the date range and change in that range two thousand twenty three update so if your numbers tie out that's great if your numbers were correct last time they were on before but they're off now the accounts that we changed were I believe the checking account the accounts receivable changed and then we had some expense activity on down below some action happened with the utilities and the telephone and the Internet and I thought there was one more that had some action to it utilities telephone Internet maybe that was it I don't know I think that might be it any case if your numbers don't tie up maybe it's a date issue you can increase the date range you can drill down on the documents going on the forms on the numbers going into the actual data input forms and make any changes you need at that time