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Holding down control scrolling up a bit on the scroll wheel I'm currently at 125% on the zoom in. Remember that if you hit the cog up top we can switch before between the business view and accountant view. We are currently in the accountant view. We'll try to toggle back and forth to see where things are located under the two views as we go. We're going to duplicate a few tabs to put the reports in as we do every time right click on the tab up top and duplicating it right clicking on the duplicated tab to duplicate it again. I'm going to go back to the middle tab as the one to the riot is still thinking go on down to the reports and we're going to be picking up the major balance sheet report tab to the right and go down to the reports and this time we want the income statement or profit and loss or P and L. I'm going to close the hamburger scroll up top change the date range up top from 0 1 0 1 2 2 that's January 1st 2022 tab on the keyboard 12 31 2 2 December 31st 2022 tab run the report. I'm going to go to the tab to the right or to the left. I should say and close the hamburger. I should say that because that would be the correct thing to say and I want to say correct stuff. So I'm going to go from 0 1 0 1 2 2 to 12 31 2 2 tab and then run that one and we're going to now go to the tab to the left. That's the setup process that we do every time opening up the plus button. This shows us the general form broken out what I'm by what I might call cycles meaning the vendor cycles what we looked at in a prior section and that's going to be where the money is going out at the end of the cycle for goods and services. We're purchasing now we're focused on the customer cycle where at the end of the cycle we expect money to be coming in for goods and services. We provide to customers remembering that customers could be used to refer to us as well as people that we sell to in normal language because we might be customers of our vendors or we are customers of our vendors. It depends what side of the table we're on and any particular transaction. But here for software customers means that we're on the side of the table that we are making the sale and are going to hopefully get money at the end of the sales process. Now we talked last time about the different kind of cycles that might be involved on the sales cycle depending on the type of industry we are in. Meaning we've got the gig work kind of situation where we might just be recording the deposits coming through the bank feeds in the system and just recording those as revenue. That would be the easiest thing to do which will be dependent on the kind of industry we are in or we might have a cash register situation which is still a cash based system. But we're not just going to record the deposit. Instead we're usually going to be having the sales receipt and then taking those receipts which might be cash and credit card receipts grouping them together depositing them into our system then and grouping our deposits in QuickBooks in the same grouping we expect to them show on the bank feeds so that we can reconcile. And then we might have the full accrual system where we've got an invoice situation and we have to then track the accounts receivable which we're going to get paid at a later point on the accounts receivable and then the deposit after that. So now we're going to look at the centers that help us manage this information. So from an accountant's perspective from the business perspective what are we trying to do? Generate revenue. That's what we're trying to do as a business from the accountant perspective. We're trying to facilitate the financial transactions as easy as possible. Make things stream line so the focus of the business the energy can be put on whatever the business does in order to generate the revenue not in facilitating the financial transactions because that should be easy. And then also to have those financial transactions be used to easily create the end results from a form's perspective the financial statements balance sheet income statement. So that will of course be done by the use of entering these forms which we'll talk about one by one in future presentations and then managing our relations with the customers. Now the the types of industries that are going to require more management with the customers are going to be those that have an accrual process because those are the ones that have the accounts receivable outstanding that we're going to have to track and manage collection on. So let's follow one of those through here. If I add an invoice I'm going to start an invoice here and we'll just do our standard a for a customer so I can make the invoice that's going to show up at the top of the customer field. Now note as I add the information for a new customer I can do that as we go here as we enter the data which is quite common or we can do it in the the customer area which we'll take a look at shortly. Notice that when I add the customer I don't need to add all this data in order to just populate the invoice whether or not I'm going to be adding all this data to populate the invoice will be dependent on the type of industry we are in do we need all this data because we want to be in constant communication or maybe we don't maybe we're at like a food truck or something like that and I don't even need I just want to have a generic name even because I because people don't want to tell me their name all the time if I'm selling them a hot dog or something like that right so it'll be dependent upon that but the minimum we're going to need is the name for now I'm just going to save that and then we would need the email if we're going to be giving this to someone by email which of course is more and more common these days this is a form that's going to be received by the customer we'll talk more about the invoice later 30 days will be the term that we're going to have so we're going to issue the invoice here we're going to be collecting on it then in 30 days from that point and then the tags we we're not going to go into the tags at this time I'm going to make up a new service item so I'm going to just say it's going to be let's say add a new and I'm just going to add an item let's make it a service item and let's say it's just a test item test one item I'm going to copy that put that it's not going to have a category I'll just have have a description sales price let's just put two hundred and ten dollars services the revenue account that's all I'm going to put on it so I'm going to say save it and close it so there we have it I notice I made it as a taxable item so but whatever I won't deal with the tax it might be a may or may not be a taxable item if it was a service item and then you've got your messages down below now as I enter this it will increase the accounts receivable and the other side will then go to the revenue account we assigned here let's save and close it save and close and then I can check that out I can go to my balance sheet for example and run the report and then I've got the accounts receivable this is the major thing that we often have to track uh on the customer center area those open invoices which are which build up to create the accounts receivable so if I go into the accounts receivable I see this invoice that we created to AAA right there that is part of the receivable scrolling back up I'm going to go back to the report here go to the income statement the other side if I run the report to refresh the data I put into the service revenue which is right there so it goes into income as I record the invoice even though I haven't received a payment on it scrolling up back to the income statement now go into the first tab the main thing that we would have to track if you're working in like the accounts receivable department or as a bookkeeper the biggest issue is going to be getting payments on these receivables so we might have to follow up on them and say hey you owe us money customers so notice we have to have a sub ledger that's not just by transaction not just the basically general ledger or transaction detail when we click on this but also breaking it out by customer so there's few reports to do that I'm going to go to the tab to the right right click on it and duplicate the tab again to open up another report and so we'll open up another report here and then I'm going to go down to the reports down below and I'm going to scroll down to the reports to say who owes you money and let's go into the accounts receivable aging let's just take a look at the summary accounts receivable aging summary and then the date range ends at 12 31 2 2 and run it so the point here is we've got some stuff we'll talk more about later but I have the information on the left hand side being the customers and the total of the of the customers owing us money adds up to the five thousand five oh eight thirty two which should tie out to what's on the balance sheet five thousand five oh eight thirty two that's what we're trying to manage those outstanding balances if we have a full accrual service type of accounting so where can we manage this information if I go to the left hand side we're in the accounting view we'll talk about the business view shortly but it's the similar areas it's just they located a little bit differently in the layout so on the left hand side we can go under the sales area now sales is a term another kind of ambiguous term to some degrees because uh you could you could call it a sale but it might be referred to as like a revenue account an income type of thing and here it might be referring to the transactions in like in the revenue cycle in essence so this is like your sales center or customer center you might call it so if we go into here then what would be included in it you've got the overview up top which gives you some quick data which can be a nice quick look at things but that's not usually where you're going to go to manage your day to day kind of transactions and activities you've got the all sales items which is located a little bit differently in the business view so we'll take a look at that later but this is the thing that's similar to the expense kind of one on the on the vendor cycle which gives you kind of a quick layout of your sales transactions in other words if I hit the plus button up top we've got all these forms that are forms that are involved in the in the sales cycle depending on how what our cycle looks like which forms we're going to be using and then in here we have some sorting options for those forms so if I want to look at those one of those forms I have here I have the estimates I got the quick sorts up top where I can go to the estimates I can go to the uh unbilled income these are basically charges that we haven't uh created a bill for yet possibly we added you know time that we entered into the system that we haven't populated yet in an invoice so if we assign something to this particular customer for example it might try to apply this to it so in other words if I convert this to an invoice converting this to an invoice right here then you've got that amount that's kind of uh pulling in from the time that has been entered so we'll talk more about that in a later component do you want to leave without saving I'm going to say yes and then oftentimes we're going to be looking at the invoices so we oftentimes might be sorting by the overdue invoices invoices that are past the due date so these are the people that we're going to be most concerned with generally to try to collect on these receivables and we have the option over here of receiving the payment if we get paid on them and then we could duplicate them we can send it out send a reminder and what not to try to collect on these now obviously the more receivables you have and the larger the company is that has receivables in it you can have full departments that are involved in sorting out the receivables trying to collect on the receivables trying to determine how likely they're going to collect on the receivables estimating the value of the receivables and so on so then you've got your open invoices which is uh quickly getting to the area that of the invoices that are open not just overdue and then you've got your recently paid items then you've got your new transactions tab so these are basically the same kind of forms that you can see up top most of them are going to be the same kind of things here that are in here so there's multiple ways to get into those same kind of transactions forms that actually record the financial transactions you could do batch actions by selecting multiple items and then sending reminders print and so on and so forth I'm gonna unbatch that so and then you also have your sorting options so I'm going to go back these were quick sorting options like filtering options so if I hit the type drop down I can go back to all transactions so now we're back to the all transactions we've got the type field over here I could sort by date if I feel like it I could sort by type or the column headers and these would be the most common to sorting types you would expect and then I can also filter by type which again I might filter by invoices which would be a common filtering component and then the date we got the the last 12 months here that or I might you know change the date range and then the customer we can sort and filter down by customer and then we have the further sorting of all status versus open versus overdue versus paid versus voided and delivery method are the sub filter fields for the invoices so this could be a useful kind of area to sort our information so then and one of the common things we might do here is like sort our invoices by like the open invoices and then try to send people reminders periodically on a monthly basis and select all of them maybe and then see if we can if we can send a reminder basically to try to collect on the receivables clearly all right so then I'm going to open that up now that would only happen if you had receivables go back to the sales area and just remember how these these hamburgers work over here so make sure you can collapse the hamburger you can open back up the hamburger and then I'm going to go back into the sales so we've got the all sales and then we've got this invoices tab so the invoices tabs is going to hone down some of some of the similar information we saw in the all sales but now we're looking at just basically the invoices which if we're on an accrual system is going to be where most of our concern is because we're trying to collect on the invoices so I've got the overdue here and then the not yet due so these are again kind of quick sorting tools with the data on down below for it and not deposited and deposited so meaning what's going to happen on the invoice if I hit the plus button we're going to be issuing the invoice it will hopefully we're going to receive payment on it shortly but if we don't it will become overdue it'll become past the pay date where we're going to want to sort and see if we can get payment on it then we're going to receive payment on it when we receive payment on it we may not have put it directly into the checking account yet so it maybe it has not yet been deposited into the checking account at that time and then the next step would be to make the deposit so we can kind of sort our data down below thusly so if I and you've got your batch action information here again so if you select these items you've got your batch information and then the status here you've got everything needs needs attention unpaid and the paid transactions and then you've got your dates here and you've got you can create an invoice and if we select the drop down we can import invoices if we so choose and then here we've got the the invoice number and the number or the balance and the due for the column so I can add the balance and the due date if we so choose and we could choose the number of rows that we want to be displaying okay so that's going to be those actions and then let's open up the hamburger again and go back into the sales area so then we have the estimates so this is another item that we can find basically in the plus button under under these now the estimate is something that would typically happen before the invoice but would be specific to a particular industry like construction but other industries as well if you're going to try to say this is what we think we're going to charge you and then maybe you're going to create the invoice from the estimate if they follow through with the estimates so so then that would be another thing that we would need to track noting that the estimates have no impact on the actual financial transactions but but would still be something we need to track because hopefully we're going to convert the estimate into an invoice so we can track those by status we've got all we've got pending expired we've got declined and then the ones that have been accepted and then closed and converted types of invoices so i'm going to go to all of the invoices now the job if you get into like a construction company and job cost systems notice that the estimating process can be quite important in especially in the long term type of job costing and the revenue cycle can be a little bit more convoluted given the long nature of the job to get it done so you might use different revenue recognition principles such as completed contract or percentage of completion kind of activity and applying things to jobs that's a specialty area and you want to be aware of that to know whether or not as a bookkeeper or accountant you want to work in those specialty areas and make that your specialty and or whether that's not your area and and then hone down your clientele or where you're going to work you know accordingly so i'm going to go back into the sales here then we've got the payment links and this is kind of like an added possible feature that can make your your collection a little bit more streamlined we might look into or dive into it as a specialty area later get paid easily anywhere anytime with payment links set up payment create a unique link share it with the customer and get paid then you've got your customers down below now clearly you know we want to be sorting our customers and most of the time in the types of industries that we're going to be having repeat customers and we're going to be tracking invoices for unpaid amounts tracking the accounts receivable that's usually when we're going to need more detail in the customer area but anytime we can add the customer it's usually good because we might want to run reports such as the sales report by customer so if i close up the hamburger up top we've got the information up top your nice sorting data or once again you can sort by estimates you can sort by the unbilled activity once again these being those items that we have time entered or we made a billable item that we haven't applied to an invoice yet we've got the the overdue items and then the which are now sorted by customer and given us the number of items they have overdue instead of just by each of the open invoice open overdue items open overdue invoices in essence and then we've got the open invoices again tracking by the customer first and then how many invoices they have open or overdue and the and the 12 paid last 30 days so those are going to be those options you've got the you've got the customer types which can help you to put some customization in the in the types of customers helps you out with a grouping of customers possibly and then you can add a new customer up top drop down you can import customers which you might do if you're kind of switching softwares and you want to add a bunch of customers at one time which will do in the second half of the course when we start a new company file now if i add a customer notice we added a customer at the start while entering data such as an invoice or sales receipt or we can add the customer here we got the same data input screen you've got the standard stuff that the default thing you need for sure is the customer display name that's the only thing with the asterix now customers in the type of business where you are dealing with customers a lot you're sending them your newsletters you're trying to keep them engaged with you it becomes more and more important to get their email their phone number and so on if you can if you have if you're selling something at a food truck store then the customers don't want to even give you your name to put in your database program possibly and so you might not have much information for the customers in that case it depends on the industry you're in do you have repeat business are you going to try to have a long-term relationship or is it a one-time transaction type of business and then the the billing address which again may or may not be important depending on if you're shipping inventory depending on whether you want to give them newsletters and that kind of stuff notes and attachments which may be more important when you're trying to build a personal relationship you know with it with the customers you might need more information down here which could help you to uh just build you know get some understanding of them here primary payment methods so these are things you could fill out when you actually fill the invoice or the sales receipt but you might have you might want to populate them here if you think they're going to do the same thing every time if they always pay you the same way and then the terms meaning when you make an invoice you expect to be collecting on it within you know 30 days or whatever 10 15 30 days this will populate automatically if you choose one of these otherwise it'll be your standard company default or what you can put in there and then sales form delivery options here a language selection and then additional information the customer type customer type and then if you have different customer types in the categories that we looked at a little bit ago to help you to kind of group the customers and then taxes exceptions and details this customer is taxable that's the default we're talking sales tax here so if you're charging sales tax remember there's a hierarchy first you got to turn the tax on and see who you and that's low that's by location in the united states then you have to select your items and select them as taxable or not and then you can select the customer to see if if they're exempt from taxes the default is that they will be subject to tax if you've turned on the sales tax and you've created the item saying that it's a taxable transaction and then the open balance would be the beginning balance in which you only use if you're starting the company the customer in a new in a like a new software or something and we'll talk more about that when we get to the creating a new company file in the second half or other course so i'm going to close this out do you want to leave without saving i'm going to say yes so that's going to be the general information which will populate our customers we can batch take batch actions with multiple customers selecting multiple customers create statements which statements can help us to to usually ask them about what they owe us so we might select multiple customers and create a statement to try to help with our collection process email make inactive now inactive means that we're going to we're going to not see it in the general view in our customer view because we can't delete a customer even if we're not going to do business with them in the future because we need the audit trail of the business we've done with them in the past but if i don't want them showing up all the time we can make them inactive and then select customer type so i'm going to uncheck these we can find here we can sort by these fields if we so choose we have the printing option we have the option to export to excel although you probably want to you can make reports that might be better than printing this page out but you can do that if you want and then i can add in the columns the address the email the the customer type and the attachments so you can customize how many things you want showing up how muddied you want that and if you want to see the inactive items meaning you made one inactive so they don't show up all the time you can click that to make them active if i hit the drop down here you can go up to 300 on a single page so you don't have to so you could just scroll through all of them on the single page if you so choose now if we go to the right here hitting the drop down if there we could create an invoice if we so choose if we're talking about ones that have open invoices we may have a receive payment as our default option because we expect to be receiving a payment from them we've got a send a reminder create a statement statements can help you to maybe have multiple invoices that are outstanding and so and so you might might be able to combine into into a statement what what is owed to you create sales receipt create estimate and send payment so some of these are going to be similar to the items under the customer field up here but they'll make the transaction with the customer field already in it if i go into a particular customer then i can see the transaction so i got the transaction list the customer detail and the late fees the transaction list is usually where we're going to go if we have a question from a customer about a particular invoice and or payment related to that invoice so this is where we would go for communications with an individual customer usually okay so now i'm just going to take a quick look hitting the drop down and go to the business view just to see where those same kind of items are under the business view we still have the plus button so if i go back to the get things done we've got the new or plus button we've got the same forms on the left hand side under the customers and then on the left now we've got this get paid and pay area which is in essence the same area we were in but now it's under the get paid area very sophisticated name very very technical and professional sounding we're in the get paid area so anyway you got your customers up top so we've seen this is the same area with the customers you've got your estimates here so now we're in there the invoices so same area we saw in the and then the payment links and then the products and services the thing that's a little bit different is that if i want to go to that sales item it's under the bookkeeping and then you've got your transactions up top so now you've got your expenses transactions we looked at in the last section and the sales transactions i'm going to close this up and this is where where all of you you could sort you know your your transactions which are basically all of these kind of forms under the customer cycle with different filtering and sorting capacity here that we saw it's just in a bit of a different location