 Zero Accounting Software 2023 Pay Bill Form. 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. That being, get great guitars. We're going to support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website. It's quite 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. Duplicate some tabs to put reports in by going to the tab up top and right clicking on it to duplicate it. And then we're going to right click on that duplicated tab to duplicate it again. Then we're going to go back to the tab to the middle Accounting drop down and look at the balance sheet report. The major financials tab and then to the right Accounting drop down again. This time the income statement. Let's go back to the tab to the right so we can change that date range hitting the drop down to do so custom range and we want to be in 2023. That's where our home is on this range 2023 into the year and then update it and then tab to the right and we look good on the date range here. So let's go back to the first tab and now we're going to enter a pay bill type of form. In other words we're imagining bills have been entered in the past. We actually entered the bill in the past but we did so as part of our beginning balance type of process. So we have a bill that has been created and now we're thinking about paying off the bills. Now before we do that let's take a quick look at our flow chart. This is a QuickBooks desktop flow chart but we're just looking at the flow of the cycle which is a general accounting flow. We're focusing in the vendor cycle which you can think of as the expenses cycle or purchases cycle where at the end of the cycle whether using a cashed based system or a cruel based system. We expect money to be going out of the business for the purchase of goods and services normally classified as expenses. Those things we have to consume in order to help us to generate the related revenue. So there's two ways we have to be paying off our normal bills. Many small businesses are often going to be using a cashed based type of system and you might be able to connect that up with the bank feeds because many of the payments we make these days are electronic payments which usually means the bank feed information has enough detail for us to add it as the payments go through. So we can then say the payments are clearing the banks which are basically kind of like a check type form or a money out form. Apply the appropriate expense account and record the expenses as the cash flow happens. However in some cases when we're trying to manage our money a little bit more tightly and oftentimes is necessary as companies get larger. We might want to be entering the bills into the system bills being a specific term within a zero accounting software system. They don't necessarily they don't just mean the bill that you've received in terms of a paper bill or email. They mean that when you enter the bill form into the system you're increasing accounts payable. So if you pay off a bill that in layman's term a bill if you pay off just a bill with a check then the bill isn't really a bill for zero terminology because you didn't enter it into the system as a bill and never increased it accounts payable you just paid it off with a check form. So the bill is a form within the zero system which increased the accounts payable. Now the bills are going to be necessary to track accounts payable. If we're trying to tighten up our cash flow and most likely with larger businesses you're trying to pay as late as possible. And remember that doesn't really matter too much if you're a small business because you might say if I pay 15 days early as long as I have the cash flow it's not a big deal. But if you're dealing with large transactions and or many transactions paying 15 days early just because of the time value of money could could actually become a big deal. So it becomes a big deal to try to pay as late as possible on the payment structures and then tracking your accounts payable more closely becomes more and more important. So now we're going to imagine the bills are in place and we're going to enter the pay we're going to pay the bill. It's just a money out form which is like a which is like a money out or a check kind of form. But the it's going to be specific in that when we're paying these payments out decreasing the checking account the other side's not going to an expense account. It's going to be decreasing the accounts payable account and it's going to be decreasing the sub ledger breaking out accounts payable by vendor. All right so let's go back on over just to see what we're talking about if I go to the balance sheet here and we go down to the liabilities. We've got our accounts payable 15,000. We put that on the books with a beginning balance type of entry so we didn't actually enter a bill per se for new transactions in 2023. We'll put that on the books from beginning transactions. If I go to the tab to the right and duplicate the tab again we could see that we could support that information with a sub ledger in a similar fashion as we do with accounts receivable accounting drop down reports. And then we're going to go down to the payables and receivables and let's just look at the the age payable summary aged payable summary. It's aged like a fine wine. So here we have it and there's the 15,000. Now we only have one person here so it's a pretty boring report or one vendor that we have to pay and there's the 15,000. But the point is that the accounts payable report would be broken out by vendor who we owe the money to and the total should tie out to what's on the balance sheet over here. Which is why when you enter anything to the accounts payable zero will often force you to enter a vendor so that that sub ledger will tie out. Alright if I go back to the first tab we can also see that information. If I go to the business drop down and we go to the pay bills area. This is typically where we would be sorting our bills and managing the bills. We have all the bills. We've got the drafts. We've got the awaiting approval. We've got the awaiting payment. So these are the bills that went out that are awaiting payment. It looks much like our report that we set up except there's no total here. So this is where you usually go internally to sort the bills that you need to pay. But it's important to understand that the sum of all these outstanding bills should in essence match up to what is on the balance sheet in accounts payable. You could also go to your contacts drop down and go to your suppliers. And so these are the contacts that you owe money to. And then there is the bill there. If I go into that particular supplier I can see the details. So if I had a question with a particular supplier I might then go directly into that supplier and look at the activity that has happened thus far. With them. So I'm going to go back on over. I'm going to imagine we usually go into the pay bills and we would be managing the bills we need to pay. I'm going to go to the awaiting payment over here. Now obviously we only have one transaction in here. So it's somewhat boring in the second month. We're going to do more of our ending transactions that we paid on a cashed basis system this month. And we'll enter those as bills and then pay them in the second month. So this month we did more transactions that are cashed based. And next month we'll do some more transactions that are a little bit more accrual based including these payments that we make at the end of the month. We'll enter them as bills and then pay them so we can see this in a little bit more detail with more than one transaction in it. But usually if there's a lot of transactions if you're a mid to smaller larger company you might have a bunch of stuff in here. And then you can sort by the date. You have the date type transaction date due date and the plan date. So and then you've got the add plan date make a payment. So then you can select them if you're going to be paying off multiple of them. You can select multiple of them and then go back up top and say make payment or add a planned date that you're going to be making a payment. If I go into here note also I can go into this particular bill and you also have the make payment down below. So you could do it this way and assign a check to it or if you so choose or if you want to do it. I think it would be usually most people would probably go over here. And then if you want to assign multiple items you can do it from here or just choose the one that we have. And then we're going to make the payment make the payment. It's going to go out of pay by check or batch payment. Now this is kind of interesting because you record a payment for multiple bills. So you might have one payment for multiple bills that you can make a batch payment for. So that's a kind of interesting tool that you can have there that you can put into play. Otherwise you would say pay by check. I'm going to say pay by check create and print check. I'm going to say continue. And so here it is. If now if we were actually printing the checks we'd have to put the physical checks in the printer and so on and so forth. If you don't have an actual check and you're paying it electronically but you're using this system to do so. Then maybe you could remove the check number here if it was electronic. What's this going to do when you record it? It's going to decrease the checking account and the other side is going to go into the accounts payable. Now notice what we probably purchased with this epiphone because that's our vendor to purchase guitars was inventory. We had purchased inventory. But anytime we're paying off the accounts payable we know that we're not actually going to go to the expense account or the asset account in this case of inventory for the thing we actually purchased in this particular transaction because the other side of the transaction is always going to be decreased in the accounts payable. If I want to look at what we actually purchased I have to go to the original bill form. The bill form is going to be when we increase the accounts payable and the other side goes to the expense or in this case most likely we purchased the inventory. So let's go ahead and save it and check it out. So let's go back on over to the balance sheet here if I may and update it and then we're going to check out the checking because that's always a good place to go. There's always good times, a lot of activity, a lot of stuff going on in the checking account. So we like to go there from time to time and check things out. See what's in the happening. See what's happening. So here's the payment amount. Notice that we have a different description here than a spend money. In terms of the source, which is nice because that's an indication in and of itself that the other side of the transaction is going to go to accounts payable and that if you want to see what we actually purchased again you have to go to the bill as opposed to the spend money form where the other side of the transaction is usually an expense or asset. Most likely an expense sometimes an asset. So if I go into this one again, so there we have it. If we needed to edit it, we've got our options up top to what you got. You got the print and edit send and so on and mark as reconciled and so on and so forth here. So there we have it. And then I'm going to go back on over and let's go to the other side. Move on over to the other side. And that's also on the balance sheet. And then that's going to be in the accounts payable, which is gone right now because we closed it down to zero. So accounts payable has disappeared. It's off the charts. But if I go to my aging, I can see that I can update it here and then it disappears once again. No accounts payable because we paid off all of the accounts payable, which is great. We don't have that debt hanging over our heads anymore. And then we're going to go to the first tab and now in the awaiting payments, I'm in the bills area. If I go to the banking, we're in the bills and we're in awaiting payments. Nothing's in it anymore because we paid it. If I go to the paid area, there's the amount there that was paid. That's great. If I go to the contacts up top and I look at my, let's just go to all contacts and then I'm going to go down to. And then I'm going to go down to epiphone epiphone is epic and then scrolling down. So now we've got our, our bill up top. There's the one it says it's paid because it's been paid. So again, if you want to view it, I can hit the drop down and view it. And which is nice that they put it all in one place here because then you can, you can see that it's been paid. And then if you go into the actual bill, you can see what we, what was purchased. And here we put it in a beginning balance account. So we just put it directly into there. But again, we'll spend more time entering bills in the future because when you pay the bill again, you pay the bill. It's going to go decrease in the accounts payable account. Yeah. Cause we just put it right into equity. All right. So that's the general idea. We'll talk more about bills and paying bills in the second month of operations. Let's take a look at our trial balance now tab into the right. And I'm going to go to the accounting drop down and go into our reports reports. And let's take a look at the trial balance trial balance. The balance is on trial. And we'll see what happens here with the trial balance. We're going to go to the customer date and 2023. See if we got an honest jury on this trial for the balance. We're going to say there it is. So if your numbers tie out, that's great. If not try to change the range. If you were tied out last time and you're following along, then if there's something off this time, you would expect it would either be the checking account and or the accounts payable account. The accounts payable down to zero here. Notice that the trial balance is nice because sometimes it gives you that zero because of the prior balance in the prior year. And that allows you to drill down on it even though it has a zero balance. Otherwise you'd have to go, you can go into the general ledger report and still kind of look at the detail. But it's nice to sometimes internally have the zero amounts if there was activity in it. So you can drill down and see the data in the system. And you can see what happens with the accounts payable. It's going to go up with a bill form. Let's bring it back the beginning date to 2022 just so you can see that. Hold on a second. It didn't do it. Didn't do it. There we go. So it goes up with a bill or a payable invoice, a bill, and then it goes down when we make the payment. That's what we expect to happen in all the time in the accounts payable goes up and then it goes back down again. All right. I'm going to go back on over to our trial balance because we're trying to just check our numbers here and I keep on babbling more. So there it is. So if you tie out great, if not try changing the date range. If something changes, then drill down on the source document and change the date.