 Zero Accounting Software 2023. Create invoices for projects using billable time. Get ready to become an Accounting Hero with Zero 2023. Here we are in our 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. Custom zero homepage going into the company file we set up in a prior presentation that be get great guitars. Duplicating some tabs to put reports in right click in the tab up top so we can duplicate it right click in the tab up top again so we can duplicate it again. We're going to go back to the tab to the middle accounting drop down and pick up that balance sheet report tabbing to the right. We want the income statement but I'm going to be picking up that comparative income statement. We set up in a prior presentation comparing the current month February that we are working in with the prior month we did which was January back to the tab in the middle and we want the date drop down. We're going to customize that date and bring it on up to two thousand twenty three the end of two thousand twenty three and update the form. Let's go to the first tab in a prior presentation. We've been thinking about a system that's basically like a job cost system for a service company which you might experience or see if you are. We're in like a CPA firm or a law firm where you have a staff of people doing work and you're going to collect the time from them periodically and then enter that time into the system so you can bill clients. Let's take a look at a flow chart just for a quick recap. This is a quick books desktop flow chart but we're just using it to look at the flow of the forms. So remember that when you're entering time in the system the first thing that comes to mind for most people is payroll. You're entering time to pay them but that's not the only thing you might be entering time for. You might have employees that are staff employees that you pay them salary yet you still have to track their time even in a professional firm like a law firm or CPA firm. Why because you have to track who they worked on so that you can bill based on the time that they spent. That might be done in just hand and paper it might be done in another software it might be done in Excel but we would need to collect that information so that we can put it into the system and invoice out the client. So that's what we did in the prior presentation putting in the time to do that we then added a items we went to our products down here. We added items in our case we have guitar lessons that we're going to be billing out for and then we went into our projects and we set up new customers and jobs or projects for those customers. Customers one through four generically naming each of those customers and then we took our time sheets and added the information in here in order to do that. We also if you hit the projects drop down and we look at the staff costs we added a staff cost but remember that was just an internal cost to the projects not having an impact on the financial statements. And then if I go into my projects and go into a project such as customer one we also entered the time by adding a time while we entered a task and then we entered the time adding the time entry. And now we have our time entries here if I go to my time we can see we have our time entries. All right so now we're going to basically just bill out based on the time entries that have been put in place. So we can see the time entry here we can see it here quotes and invoices and the profitability. So if we're going to invoice it out we could hit the drop down and I can go to the tasks and expenses is one way. You can look at it because that gives us our little summerly summary of the hourly rate tasks so we have the guitar lessons lined up. So I'm going to pick that as the task that we want and then I can save and open a draft invoice. Let's go ahead and do that save and open up the invoice. So now it's going to go to customer one and assigning to the project as we can see down below. Let's put the date back in Feb Feb twenty seven again a lot of activity in Feb twenty seven. So due date June twenty seven OK that's good and then it pulls in the information that we populated the four hours. That's the time entry that we did the data input for the seventy five is what we set up for the item that we pulled into the task. And it is assigning it to the service item because that's what we set up for the item and the task the three hundred. What's this going to do. It's going to be increasing the accounts receivable by the three hundred. Other side going to revenue driven by the item and the sub ledger for the project and job will be impacted as well. There's no inventory involved. So it's a little bit easier and those sales tax involved as well. So let's approve it and check it out. So we're going to go let's wait till I get the green and go to the balance sheet update it and check out the balance sheet. So let's go into the A to the R the accounts to the receivable then scrolling down in the A R on Feb twenty seven. We got the three hundred right there. So there it is scrolling back up back to our balance sheet. If I go to my income statement then and I update it has to be updated. There's the three hundred for the service revenue. No inventory involved. The sub ledger is should be impacted for accounts receivable. So let's go to the tab to the right right click on it. Duplicate that tab and then we'll go into reports again accounting drop down reports and we're looking for the sub ledge. Sub ledge and we're going to say that's good. Let's go into the aged receivable summary and it's been aged nicely. So there we have it. And so now we've got the three hundred added there. Here's our totals. The total adds up to twenty one seven oh six fifty when we look at it by customer and that should tie out over here twenty one seven oh six fifty. And if I look at the projects going to the first tab and I go into my projects all projects and take a look at project number one. We can see the project information and the profitability here and we can run profitability reports remembering that that cost is pulling in. And it's not actually being recorded to the financial statements that was an internal cost and the invoices now being built out. Now note you got to be kind of careful with the time over here because it still shows the the time and expenses. So I'm going to go here and say that we want to know hold on it looks good. It says it was invoiced here so we have the time and expenses and then it was invoiced and then we don't have anything left in the to be invoiced. All right that looks good. Okay let's go to the drop down again. Let's go do the same kind of thing for the other for the other projects. So we're just billing out now that we've entered the time. I'll do the same for project number two checking it out. We have invoices to be invoiced amount over here. That's what we need to be invoicing out. So I'm going to say let's just do that drop down. Let's go to the tasks and expenses. Guitar has been selected. Let's save and open a draft invoice just as we did before. And there it is customer number two. Let's hit the drop down on the date back to Feb 27. Feb 27 and boom. And so that looks good. And so this is going to be increasing accounts receivable by 300 again. The other side going to revenue and the accounts receivable sub account will be populated by customer two and the project related to customer two. Customer two guitar lessons will be updated as well so we can run reports by project. Let's approve that one. And let's just do the same thing for the other two here. Let's go to the projects drop down all projects. And let's take a look at customer number three and say there's to be invoiced amount over here. Bigger larger amount because we did more time for this one. So let's go ahead and say invoice it tasks and expenses then checked off. Let's save an open draft invoice. And so customer number three date bringing it back to Feb 27. Feb 27 tab tab. And so this looks good increasing accounts receivable by 460 other side going to revenue and the customer number three sub ledger increasing as well. As the project. Let's save it again and do it one more time. Uno vase mass accounting what projects drop down all projects. We are on number four now numero quattro and to be invoice. So we'll hit the invoice drop down tasks. And so that looks good save and open draft invoice save it and open it and we're going to say this is back to Feb 27. Feb 27 tab tab same kind of thing increasing accounts receivable other side going to revenue customer number four will be impacted and we'll have an impact to the project as well. So let's save that one and approve it. And so those have been populated. So let's just give a recap of what has happened thus far. So we're going to go to the balance sheet. Update it. And we can see in the a to the R we've been billing out for the guitar lessons of our staff members as they have been working diligently creating master musicians with guitar lessons. And so there they are. There's the invoices for them one two three and four Feb 27 and then going back on over and looking at the income statement updating the income statement and the service item for February. We have our build items down here. So they look good. Looks like it should. And then we also know that this a are if I go back to the balance sheet the accounts receivable that is should be also reflected in the aged receivable report on the right. And so we can see our customers are now outstanding. There they are outstanding invoices the total by customer totaling up to twenty two nine twenty six fifty which ties out to what's on the balance sheet twenty two nine twenty six fifty. Okay. If I go back to the tab to the left we can also track now the open invoices by going to the business drop down checking out the invoices looking at the ones that are awaiting the approval. And there's the ones that are waiting there. They're just waiting for us. They're like hurry up man. We're sitting here. We're sick of waiting. We're sick. I'm sick of waiting to I want to get paid. Dang it. Dang it. I mean. So then let's go back to. Then what was I doing then we wanted we could go to the contacts drop down and look at the all contacts. And we could go to the customers. And. Take a look at it in that format. So now we've got the customers that owe us the money being reflected here and we can also see it on the project side of things. If I go into the projects and take a look at the projects then we have the detail for the project the invoiced amount here. And we have our profitability and we can run the profitability reports and so on. Now when we get paid most likely we might we were expecting to get paid by the contact right by the customer which we might track on the customer side of things or we might track on the the open invoices. So likely we would go to the open invoices and go into the invoices here and look at the ones that are awaiting payment. Let's say that this one they paid us right so let's say this one is going to be paying as customer number one. And so we're going to make a deposit for that particular item. So we're going to say right they paid us now remember after you invoice it's possible that that like you wait till it clears the bank and like use the bank feeds. And then try to connect the bank feeds over here and whatnot but we'll talk about bank feeds in a future course or section but it kind of depends on how they're going to be paying you are they going to be paying you electronically bank transfer. Is there going to be an intermediary platform a PayPal or something that you're going to have to deal with and so on and so forth or by check and whatnot. So but in any case whatever the form of the payment we're going to say that we received it and it's going to go into a deposit into the checking account at some point. So let's say that this is going to go back to Feb 27 again Feb 27 lot of action and then I'm going to put it into the clearing account this time instead of directly into the checking account. Assuming that we might have this issue with the middle payment processor or with a with a with cash if it was cash we'd have to collect and deposit it at one time or something like that. If it was a transfer that hit directly into the bank and the full sum then then again you might just put it directly into the checking account. Okay so I'm going to say this is going to be I'll just call it deposit. There's the invoice. What's this going to do it's a deposit increase the cash account by going into the clearing account so we can group it the other side decrease in the accounts receivable and customer number one sub ledger going down as well. So let's go ahead and make that deposit. And then if I go into my balance sheet to see K Paso what happened we're going to say the clearing account now has 400 in it that we're going to then transfer to the checking account that 400 being made up of this amount that we put in from the invoice as well as 300 from a receive payment. Now note that zero I just want to point out if I go back let's go back to here and go back to the first tab and we go to the invoices has a pretty nice matching system on these awaiting payment amounts because if I was going to get paid by multiple of them that are going to be deposited at the same time then I can choose you know multiple of them and deposit them here by by selecting two of them and deposit them directly into the checking account as one lump sum. So that limits some need some times for the clearing account but you could also still have other things that make you need the clearing account such as the intermediary platforms could have fees and stuff like that which kind of throw a wrench into your system as an in addition to just a grouping issue in our case we have deposits that are coming from as we saw here are received money form as well as an invoice. So now we had some deposits from an invoice and some from a receive money form that we're imagining we're depositing together possibly because both of them were cash related or something like that. Or both of them being processed by the same intermediary payment processor and in that sense we wouldn't be able to kind of check them both off so zero has a nice system to kind of group them. But you could still see where you might need that kind of intermediary account is what I'm trying to say here. So there's the clearing account and the other side is going to go to the accounts receivable decreasing the AR. The pirate account are pay me are hardy madey when here's the receivable to the aid to the are and so here's the decrease receivable payment allocation. No that's not it this is the one. There it is. Sorry. I got distracted by being acting like a pirate which obviously can be quite exciting and distracting. So I'm going to go back on over and so then if we go to the the summary account over here the AR summary we see that customer one has disappeared because they don't owe us any money anymore. So we're now at the 22 626 50 if we break it out by customer which should tie out to what's over here on the balance sheet 26 626 50. If I go to the first tab then we can see that it has been moved from the awaiting payment to to paid it has now been paid. And we can also track it by going to the contacts all contacts and we can go into the individual customer. If I wanted to check it out that way and you can see that the invoice has been paid. We can also go to the project that is related to that customer all projects. And we go into project numero uno customer one and we have the amount that has been invoiced here. And if we go into our quotes and invoices we can see the invoice and we can see the indication that that one has been paid. So that's great. Okay. So then let's do one more step here. Let's take that $400 which is consisting of that invoice that we received and a sales receipt from a prior period. And imagine that it's going to be grouped together for whatever reason possibly because it was cash receipts or because the intermediary institution is grouping them together to $400 which is going to hit the checking account as one lump sum of $400 instead of 300 and 102 separate accounts. And we want to make sure that we have that grouping proper so that we can do the bank reconciliation as easy as possible which we might assist in doing or be assisted by the bank the bank feeds. All right. So to do that I'm going to hit the plus dropdown and just I use a transfer form. I'm going to say that you could use a receive money form but remember that will look correct on the deposit side of things into your checking account but it'll have a receive money form that's like a negative on the other cash account. So usually the transfer form might be the way to go. It's the way I'm going to go here. So we're going to say this is going to be from the cash clearing account going into the checking account. I'm going to say this is happening once again. You guessed it. Feb 27. Feb 27. That's the date. That's the date of that all cool. This all the stuff happened during that time. 400. I'll just call it deposit. 400. Transfer it. Boom. And it says there's an error. The account cannot be the same. I didn't mean it to be checking account. All right. I got distracted saying Feb 27. Who wouldn't. It just rolls off the tongue like that. Feb 27. Feb 27. Let's go to the balance sheet. That's not the balance sheet in balance sheet. Update it. And you can see then the clearing account has disappeared because it has cleared. Why did it disappear because it cleared. That's why. And then if we go down to the checking account to check it out, we can see that we have the 400 transfer showing as a positive increase there. So that looks good. Let's go back on over. And that's that's all we're going to do at this point. So let's go and run a trial balance to see where we stand going to the tab to the right. We're going to go to the accounting reports and let's type in trial balance. And then we'll do a range change custom date range 2023 end of the period updated. So this is where we stand at this point in time. If your numbers tie out great. If they changed or if they're not tying out and they were on last time as of the end of our last section, but they're off now, then we made a change to the checking account. The clearing account is now gone because it's back down to zero. We made a change to the accounts receivable account and we made a change to the sales service accounts. So you would think that those would be the items that might have changed. If it's a date issue or something you can drill down on the numbers, go back to the source documents, the invoices in general, the deposit form as well. And you can and the transfer form and you could adjust them as needed.