 Zero Accounting Software 2023. Receive payment from invoice and make deposit. Get ready because it's time to become an Accounting Hero with Zero 2023. Here we are in our custom Zero homepage going into the new company file we set up in a prior presentation. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. To that being get great guitars we're going to duplicate some tabs to put reports in like we do every time right click in the tab up top to duplicate it right click in the duplicated tab to duplicate it back to the middle duplicated tab going to the accounting drop down we want to open up the balance sheet tapping to the right accounting drop down this time the income statement back to the middle tab we want to go to the date drop down customize that date and bring it on up to 2023 the end of 2023 update the form the profit and loss on the tab to the right has the correct date range for our practice problem so we are good to go there I'm going to go back to the first tab now and just to recap of what we have done in the past because we're going to be receiving payments on invoices we have created let's take a look at a flowchart this is a QuickBooks desktop flowchart but we just want to see the flow of accounting transactions by form we're in the revenue cycle remembering that your revenue cycle will generally be dependent upon the type of industry you are in if you have a simple kind of industry for the revenue cycle like you just get money from youtube or something you probably just record a deposit with the bank fees and record income at that point in time if you have a food truck or something with a cash register you can have to have a receive a payment type of form getting paid at the same point in time the work is done and if you have to bill the client which is often the case in this online kind of world where you would email out an invoice for example we would have to create an invoice send out the invoice and then receive the payment on the invoice so that's what we're going to work on here we have created some invoices in the past now we want to receive the payments on the invoice now note that when you make an invoice you could have multiple ways that they're going to pay you so you might set up different payment options through different portals for like try to connect your paypal a paypal to it or credit cards to the payment portal or bank transfers or something like that or you might have them just send you a check or pay you in some other way through through a portals and whatnot so then the question is when I get paid what is that payment going to look like am I going to get paid and it's directly going to go into my checking account in the same format as the invoice meaning if I invoice $500 am I going to get an electronic transfer or a check or whatever for exactly $500 the amount of that invoice then I can possibly put it directly into the checking account at that time but if I make a bunch of invoices like on a third-party platform like a Shopify or something like that and I'm using third-party payment processors stripes or paypal or credit cards and whatnot then I might get multiple payments from the invoices that are going to be grouped together by the time they hit my checking account then they're going to be grouped in some different way than the original invoice in that case so in that case you might need to use a clearing account now note that zero has a nice little functionality to group the invoices so you might still be able to group the invoices but you might also end up using a clearing account right and if you're going to get payments by invoices and sales receipts that are grouped together by a payment processor or cash or something like that then again you might have to use a clearing account as you receive the payments and then make sure that you transfer them into the checking account in the same format as they will appear on the bank side of things so that you can do the bank reconciliation either with the bank feeds or with the the bank reconciliation all right so let's go back on over then and when we created our invoices if I hit the drop down on the business we can see our open invoices so I can go into my open invoices here and look at the ones that are awaiting payments so these are the ones that we are working with that have not yet been paid off yet we can also find these if we were looking at one individual person like I'm looking at Anderson here we're going to do that one first we could also go into our contacts and take a look at our contacts and go into the invoices and check out the invoices that way and we can see that we have this invoice outstanding for Mr. Anderson we could then go into the invoice I could go into a particular invoice here and and then say down below that we got paid for that particular invoice that's one way you can do the data input but I would rather go to the business drop down I think it's probably more likely that you're going to go into this invoices tab and then select the appropriate invoices I'm going to go to a waiting payment tab and then I'm going to select this one now again if you had multiple invoices that you've got paid at one point in time that are going to hit your checking account at one lump sum you might choose multiple invoices and then use your deposit form to kind of put them together but I'm going to use them one at a time and I'm going to deposit them into this clearing account so we can practice that concept which might come up from time to time where you might need to use this clearing account depending on how your how your payment processor system is set up so I'm going to choose Anderson here and I'm going to say deposit it make the deposit so it makes our deposit form I'm going to say the date I'm going to bring it on back to Jan and 25 let's say Jan 25 and reference I'm just going to say deposit and I have to choose the bank I'm not going to put it into the checking account but rather I'm going to put it into the cash clearing account and then group them together so then we have Anderson you can click on the invoice to link over to the invoice this is a batch deposit but we only have one item in it so what's it going to do increase the account the cash account in this case not the checking but clearing account other side decreasing the accounts payable and the sub ledger for accounts payable broken out by customer will also go down as well so let's make the deposit and check it out so we'll make the deposit and then go to the balance sheet and update it so we have stuff that's up to date the clearing account has now going up it's not yet in the checking account but in the clearing account the accounts receivable if we go into it then we can see it should be going down now note the accounts receivable should be an account that you can see exactly what has happened it's going to go up with invoices it's going to go down with receive payments that's all that happens with accounts receivable the only account that has way more transaction types is the cash account because cash is the life blood of the company most other accounts you can you can have an idea of what type of forms are going to happen like the with the accounts receivable it's going to go up with an invoice down when we get paid let's go to the tab to the right and I'm going to right click and duplicate it because I want to open up the sub ledger for accounts receivable just so we can see how that works accounting drop down reports and let's take a look at that uh receivable aging detail aged receivable detail I should say let's go into that one and now we can see this is updated uh let's not do the detailed one I just want the summary hold on a second not the detail not the detail back to the reports reports is what I'm looking for poor favore it's what I'm looking for poor favore let's go down here let's say we want the aged receivable summary it's in the starred ones I could just go into the star items but there it is and so it's after the date range so now we've got our our people that owe us money ties out to 43 207 50 that's what should be on the balance sheet uh which is here in practice we would probably be tracking this on this side looking at the business drop down and invoices so the open invoices or the ones awaiting payment are the ones that that still add up to the the accounts receivable on the balance sheet but you don't have that nice sub total that's why I open the reports sometimes and then you can also see it over here in the contacts and I can go into my customers and see the people that owe us money on the customer side of things there they are in the summary and then I can go into Anderson here if I was contacting Anderson in general about a particular invoice and see the invoice and whether or not it's paid as indicated on the little link on the side all right let's do it again back to the first tab but we're already on the first tab and let's go to the accounting uh drop down uh wait a sec let's go to the business drop down and go to the invoices and I want to go back to the uh ones awaiting payment invoices awaiting payment and let's pick up the Eric music one this time so I'm going to pick up this one I'm just going to do one at a time and put it into that deposit form note that you might if you have bank feeds on you also want to think how the bank feeds will fit in you could think of a system that you wait till it clears the bank feeds and if they're clearing one at a time for like this dollar amount then you might you know come up with a system where you can tie the bank feed to this invoice possibly but that will get muddied up if you have a payment processor for example that has fees so the amount doesn't tie out exactly then you can have to record the received payment in some way or or have some other process that's going to set up and or if multiple payments are going to be linked together again all right so let's make the deposit if we may deposit it and let's going to say this is going to happen on jan 25 jan 25 all righty and this is a deposit and we're going to put it into the clearing account so this is going to increase the clearing account decrease the accounts receivable decrease the sub ledger for the customer of eric music let's deposit it wait till we get to the green thing and then go back to the balance sheet update we can see the clearing account should go up cash clearing accounts receivable should have gone down i won't go into it again because we've seen it a couple times let's go to the aged report just to double check the aged report 30 000 disappears we're now at the 12 750 750 which ties out to what's on the balance sheet 12 750 750 go into the first tab we can also see if we go to the drop down invoice and we go to the awaiting payments now we've got these two awaiting payments the ones that are paid over here you can see the ones are paid we're transferred over here so you can see those two and of course you can see that transaction as well on the contacts if you wanted to check it out on the contact side of thing all right so i'm not i'm not going to go over there the mortgage is going to go and say let's do the deposit now so if i go back into the to the balance sheet we see that now we have this amount in the clearing account so now i'm going to imagine that whatever payment process we're doing whether it be cash credit card some other payment processor is going to be grouping the deposits together and putting them into the checking account we imagine physically going to the bank if it were cash or physical cash going into our bank account if it was through a credit card for the total of the 34 70 250 instead of the two individual amounts that make up that item and there that's the reason for us doing this clearing account because now i can transfer it in in that one lump sum in a balance that should tie out to what's on the bank statement now again because these were both two invoices you could have done that same thing by simply selecting both of those invoices right when we had them up and then depositing them as a group but you could imagine situations where you had invoices and something else like sales receipts and whatnot that you need to group together into your clearing account so i still want to give the concept of the clearing account so it would might be redundant you might not need the clearing account if your process just had those invoices and you were able to select multiple invoices batching them together in the proper format so just be aware of that that might be a more simplified system in some cases okay so 34 70 250 let's make the transfer so now i'm just going to go to the plus button up top and i'm gonna not record the receive money or spend money forms but rather the transfer form since this is basically going between two types of kind of cash accounts so it's going to be coming from the cash clearing account and going into the checking account and we're going to say that this is going to be for jan uh jan 25 jan 25 right yeah and then this is going to be for the amount of three four oh seven two point five and we're just and then again you you might put the two that anderson and eric and i didn't spell that right but you might put like the invoice numbers for example if you wanted to kind of give more detail to tie this out and so you have to transfer an ad or just transfer i'm going to transfer it and so there we have it if i go to the tab to the right then i should be able to update and say okay now the checking account has been increased the clearing account is gone because it's back down to zero that's what clearing accounts do they go up and then they go back down it's not it's not a temporary account by the way which are the income statement accounts which clear out automatically by the system at your end uh in the closing process this is a clearing account that clears out periodically usually a much shorter time frame than monthly or yearly uh two zero when the job that they were set up to do is done okay so if we go down here we can see the uh transfer so now it's in here as one lump sum instead of as two separate amounts which is beneficial which is necessary if it's going to show up on the bank statement in that one lump sum so that you can easily tie it out the bank reconciliation should be easy if your accounting system is set up right i shouldn't have to go into the bank reconciliation when i tie out what's on the bank statement on the bank side to what's in our books i shouldn't have to be adding stuff together in our books to tie out to what's on the bank statement if that's the case your accounting system is not optimized right we want the accounting system to be putting the stuff into the bank account ledger in the same grouping as will show up on the bank statements and then if we have the bank feeds on it should be able to automate the whole thing the bank feed should be able to read that dollar amount and help us with the bank reconciliations which we'll talk about in future sections or course now note if i go back into this and i drill down onto this transaction you could now add notes to it right so you could show the history of the transaction down here and you might want to add a note so now you have the capacity to add a note to it you might want to put a reference of the of the account numbers that were added or something like that if you wanted more detail down there all right so let's go let's go back and open up a trial balance and see where we stand on the trusty tb not tuberculosis trial balance so we're going to go to the accounting drop down and uh reports reports i would like to make a report trial balance if you type it in if you could spell correctly you just you don't need to need to spell the whole word just like the first three letters and you can get it done but that's often above my capacities but i got it this time we're going to say this is 2023 and boom update it so this is where we stand so if your numbers tie out great if they don't what did we change well this time we just changed basically the the checking account and the clearing account should be gone uh because we have adjusted out of the clearing account so it's if you were in balance last time or tying out to our numbers last time then you would think that this would be the account that would be off this time and if it is maybe change your date range and including a larger date range and see if it changes because of a date issue and if it's a date issue drill down on the number get down to the source transaction and adjust the date