 zero accounting software check form or spend money form get ready to be an office hero with zero 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 then 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 here we are in our personal zero home page we set up in a prior presentation gonna scroll in a little bit by holding down control scrolling up on the mouse wheel I'm at 175 percent on the zoom in we will be opening up the company file but I'm first gonna reset the data so that it will not be including anything we did in prior presentations and then it will open up the demo file have I mentioned that I love the reset capability in the practice and demo version of zero I do if I've missed that I'm gonna hide this item over here we're gonna be opening up the major two financial statement reports by opening new tabs and then the reports within them right clicking on the tab up top to duplicate it then I'm gonna right click on the duplicated tab and duplicate it again the double duplication going into the middle tab I'm gonna open up our reports in the accounting drop down we're looking reports I want to be opening up the balance sheet report that's one of our favorites it should it must be in the favorite reports if you don't have the balance sheet as a favorite report then you know there's something wrong with you you're not thinking right and then we're gonna go into the accounting again open up the reports again and the income statement as well the profit and loss the P to the L we're gonna open that one up back to the balance sheet gonna change the date on the range change in the range and I'm gonna bring that up to 2022 that's my current data's field and so those are two reports I open that up every time and I always work on that first file here or the first tab I should save so now we're just gonna look at the standard check form so you'll recall in prior presentations we've been thinking about these types of forms related to in the end the out the outflow of cash so you can call that the vendor cycle the expenses cycle the purchases cycle so now we're gonna be looking at the standard or easiest way to be having or pay for expenses and that's just gonna be basically a check type form or a spend money type form so the forms we've been looking at bill form we looked at the purchase order form these are involved with the purchasing of inventory and then we now are going to be looking at the spend money form now just a quick recap of a flow chart to see how the vendor cycle might work I'm gonna go back on over to our flow chart over here we're in the vendor cycle noting that if money is going out we're paying from the business for goods and services the easiest way to do that is with the check form so which you can also just call a money out form the form that decreases the checking account so you can think of them as different variations for the type of payment you're making like a transfer versus a check and so on but really from a data input standpoint they're all the type of form that decreases in essence the checking account now there is a difference between actually hand writing or manually writing the checks and sending out mailing out checks to be paying for something because at that time you want to make sure that you're actually entering the check in the system as you write it because you would like to be able to track whether or not it is outstanding meaning you wrote it it's going to take some time for it to clear the bank in order to verify however if you do electronic transfers it's still if you have a full service accounting system best to enter the transfer on your side and then wait till it clears the bank to do a bank reconciliation or possibly match with the bank feeds in which will help you to do the bank reconciliation however many small businesses would prefer simply to just wait till it clears the bank since there's not a big gap between the transaction taking place and it clearing the bank so in that case you're kind of eliminating the double check that you get in the internal control of you entering the data and then checking it to the bank but it's easier that way so we'll hopefully we'll have a whole section on bank feeds we'll talk about them more in the future but I just want to mention that now as we look at the check form and then we've been looking at the accrual forms which was the bill form increasing the accounts payable then we pay the bill with in essence a type of check form but a specific form that's decreasing the checking account but also always decreasing the accounts payable and then we talked about a purchase order and a bill when we were having the inventory now we're going to like the easiest thing just the check form and remember the the check form or decrease of the checking account form whatever form you want to call it the data input form is in essence what will generally be created if you were to try to construct your books just simply using the bank feeds you're still going to be constructing in essence a type of data input form from the data provided from the bank feeds which in essence for money going out would usually be you would think the check form again we'll talk more about that hopefully when we get to a bank feed section in and of itself now to get to the check form the easiest way is probably just go to the plus button up top and we're going to go to the spend money item spend money item and then typically it's going to come out of course the checking of counts we're going to have a we're going to have to have a checking account set up typically to be using a check type of form going to go into the check form and then we could say this is going to go to I set up like my my another vendor a a a vendor so it'll be at the top of the list and then here's the date will populate typically automatically if you're working in our real time also just note that normally will be on the direct pay so maybe we'll spend some time to look at the prepay and over payment but usually when you look at the spend money form generally you're looking at the direct pay and then down below if we have the items this would be when we're paying for say inventory items so we talked about inventory items with a bill if we don't have an item that we're paying for then we can add a description we might just add like the quantity and the the price which I'm just gonna say is like 400 and then let's just pretend that it was like for the utility bill or something utility utilities right there and it would just be like a normal type of expense if you have a region then you could set up or distinguish the reason the region and of course this would simply be then recording a decrease to the checking account and the other side going to this utilities here if we assigned an item then it would be increasing the inventory most likely depending on how the item was set up and also give us a tracking of the sub ledger the units of items that were purchasing that would be driven by once again those items also note that if it was a check we could have the reference number and a check remember that this form is basically the form used to decrease the checking account whether being a check or say electronic transfer type of form also we could attach an attachment to it if we wanted some other information related to it that can be tagged there in terms of a reference if we needed to go through an audit trail in the future or something like that note also you have this option down here of assigning expense to a customer so if you were to think about this option that would be the concept of we have an expense that we are creating here but we're doing it in such a way that it's for like a job or something like that and we want to basically included or bill for it when we actually turn around and get on the revenue side of things and include this possibly in an invoice I won't get into more detail on that at this point but just realize you that's what that button is that's where you could have some capacity there so then you can go to add in another or just save let's go ahead and just save it here so I'm gonna save that see the impact on our financial statements by going to the balance sheet I'm gonna update the balance sheet and go on down now notice our checking account is not in the assets as it should be normally because it's overdrawn meaning we owe the bank money so it's down here in the checking account so don't let that throw you off it's just because it's overdrawn so now we're gonna go into the liability of the checking account and then I'm gonna scroll down to December note that the checking account has the most activity in it because obviously the cash is like the lifeblood of the company so you have our spend money form so there it is the spend money form and if you go into that it'll drill back down to the source document with it which is great if you wanted to edit it you can hit the drop-down and edit the transaction thusly and so now it looks like that data input form that we were that we put together so then I'm gonna go back and let's go back again and so then we're on the let's go back one more time the other side we put to the profit and loss or income statement so that's in the second or the last tab over here let's update it and we put that into just utilities account so it's an expense account so there it is notice this would be the easiest kind of transaction to do with in essence bank feeds and just rely on the bank feeds to do the transaction and the bank feed would generally still make some kind of money out form like a spend money type form it would just be used partially from the data we got that was imported from the bank feeds so notice when you have a bill or a cruel kind of system and you're tracking accounts payable that makes the bank feeds a little bit more difficult or a little bit more complex in terms of how you're going to put that bank feed into your system so if we go back to the first tab we can also take a look at the contact information so I'm gonna look at all contacts notice you have the drop-down here because I'm scrolled in if I scroll back out you'll have the headers up top if I scroll in just a bit more to 175 then it gets the drop-down so you can see how the the website is adjusting due to the size of the screen if I look at all of them and I type in aaa and so there we have our contact and obviously there's nothing to do at this point in time because we paid it with just basically a check type form rather than entering a bill but we can still see the activity down here and that's important when you do your bank feeds as well because it might be possible to enter the transactions without entering a a vendor who you paid but you still want to do that even though you can still construct the financial statements without that because it gives you an added level of detail to sort your information by notice that you can also look at this information from your registers so if I went to the accounting drop-down and I took a look at the chart of accounts the underlying accounts and I will still say I'm gonna scroll in just a bit to look at the checking account if I click on the balance here which you can see is overdrawn then it gives you kind of a running balance kind of like a check register balance this is similar to the detail that you would see when you go into the detail of the report by going to the the balance sheet and then finding the checking account which is a liability because it's overdrawn and clicking on it where you get you know that detail report of your activity by date hopefully in future presentations we'll talk more about kind of how to sort and filter some of the reports a little bit more but you got your filtering options up here we'll talk about that later so I'm gonna go back and go back well that's let's I went back too far let's go back one more okay so then let's make another one if I make a check and say let's say we're gonna do the spend money and let's go from the checking account and let's say it's gonna go to AA again just to make it easy so we could find them but this time you purchased an inventory item so now we're purchased an inventory it'll populate basically automatically for us and it'll do the same thing in terms of a check it's gonna decrease the checking account the other side this time however it's gonna be driven by the item which is gonna put it here to the inventory account and the sub ledger for inventory will be impacted as well tracking inventory not only by dollar amount we spent but also by the inventory items on a perpetual inventory system so if I was to save that and check it out go back to the balance sheet update we're gonna have the decrease the checking account but now we can see it added to the inventory so that's the same thing we saw with the bill it's just this time we paid it directly with the money out from the spend money form going back I'm gonna go to the last tab right click on it duplicate it and just to note that we can also see in the accounting and reports if I type in the inventory and we go into the inventory item summary report then we can go in and we could see the activity here giving us some more support about what the thing we bought is so this report's giving us more detail about a balance sheet line item of the inventory okay so let's go back to the first half I just want to touch on hitting the drop down here and do another spend money form we're gonna go into the checking account and next and now we just want to note that up top usually we're using the direct pay but I just want to touch on the prepayment and overpayment items here let's first look at the prepayment now if you're an accountant and you hear the term prepayment you're probably thinking like adjusting journal entries something possibly related to insurance because insurance is something that we have to pay for before we actually get it unlike something like utilities where we usually pay for it after we get the service of the utilities therefore we oftentimes put the prepayment on the books as an asset when we pay for it and then allocate it to an expense using adjusting entries as we consume it but I know this form here might be used for a situation where you're making a payment before you actually receive the bill and then you expect to receive the bill later matching the bill to the payment so let's kind of think about it in that scenario let's say we have an AAA is just we're just gonna use that as our vendor we're gonna keep the date that looks good and we're just gonna be a normal payment type of form and then in the disc in the items down below I'm gonna say quantity one let's just say it's for 1000 and then the account like I say if it was a insurance or something like that then usually we would put it into prepaid insurance an asset type of type of account but let's say here that I'm just using this prepayment form so that we can enter the enter the payment before I actually received the bill and then I'm gonna match the prepayment I made already to the bill I expect to see in the future so maybe they're saying hey you didn't pay us and we say hey we don't got the bill we didn't get the bill well you owe us a thousand dollars well I'll pay you a thousand dollars but send me the bill so I can enter whatever added information on the bill is into the system or possibly attach the bill or whatever I need to do with it so let's just put it to an expense let's put it to like let's put it to like utilities or whatever expense account and you and treat it in that fashion so this is going to still record the transaction decreasing the checking account the other side going to utilities so I'm gonna save it and just double check that go into the account here I'm gonna go back this should be the balance sheet let's go back to the balance sheet I'm gonna update it and then we're gonna say in the checking account we should have a decrease in December thousand dollars for that a a h down here so we've got there it is there it's a it's a payable prepayment type of form that we use I'm gonna go back and then I'm gonna go into the income statement and refresh or update that and we can scroll on down and the utilities here if I go into the utilities we just posted it to utilities so I'm not really doing the prepayment thing in terms of the adjusting journal entry I just posted it to the expense account here so I'm not using that adjusting journal entry concept instead what I'm going what I'm using this for is to go back to the first tab and then I'm gonna go to the business drop down and look at my bills that I need to pay you'll note that I've got this a a a thing up here so if I and I can also see that if I go to my my contacts and I go to let's just go to all contacts and look up a a a a a here and then go into that so now we've got our information we got the spend money spend money and then this prepayment item okay so let's find it in the in the bills again so this would be helpful so I can talk I can show that if I'm talking to the vendor and say hey yeah I've got this prepayment thing I still need the bill because I want to match it up to the bill is my my thought process here so I'm gonna hit the drop down and see it this way in where was I pay bills and then I'm I'm going to go into it now I could go to the bottom you could use this for example if they're gonna refund you the money and then you can and then you can you can pay them something and they're gonna refund it back so you have this item down below to do that or I'm gonna go back if they give me the bill I can hit the drop down and enter the bill into the system and I'm gonna say that's from a a a on the bill and then the item it's not gonna be an item I'm just gonna say one and the unit price 1000 I'm gonna say that it goes to that same utilities utilities account and then I can attach now that I imagine that I got the bill from them I can put any added detail up there that I need or add a memo or whatever I need to do with it now I'm gonna go ahead and approve the bill and it's gonna say that see that I should have a reconciling item so it has a $1000 and outstanding credit would you like to allocate that to the bill so I'm gonna say yes allocate the credit to the bill so it now it should match that out so the credit here it is outstanding credit amount to credit we're gonna say 1000 and then so amount due on bill 1000 total amount credit 1000 so I'm gonna allocate that out and so now we've got that allocation so now if I go to my drop down and the bills to pay item we've got these two hopefully tying out matching out here and if I go into the contact information all contacts and I look up a and go into that information they should be paid off here so you got you've got that information on down below with it there as well now then if I go to the income statement you might say well did I double record something here if I go to the income statement and scroll down to the utilities we could see how it's been recorded in the utilities because we entered basically a payment in here and then the bill but then we said the bill was what's gonna allocate that prepayment so you could see down here that we have the activity with the prepayment that we put into here and then we've got the invoice the payable invoice in essence the bill that we created and the the prepayment allocation has been allocated so it's been increased and decreased taken back out so it looks like it's been recorded properly and so that's how you might one way that you might use that that that format if you're getting a bill in the that's gonna be received in the future the other way that you might use it that I can imagine here would be if you go to the spend money and I go from the checking account and let's just run a another similar scenario but instead of using the prepayment I'm gonna use the overpayment so again that this might be something where they're saying hey look you owe us money and we say well I didn't get I don't have the detail you didn't give me the bill or something like that but now I don't even know what it is I'm supposed to allocate the money to because I don't have the bill or something like that so I don't want to hit an expense account so I'm just gonna say let's make another one like BBB this time and I'm just gonna say okay I'm just gonna pay you the whatever the two thousand dollars that I owe you and it's just gonna go into a credit to the accounts payable so that so that and then when I get the bill later I can enter it or if it's gonna be refunded to me I can allocate it out so if I record it that way and say okay let's save that see what that does and I go to my let's go this is my income statement with my balance sheet go I went over my balance sheet here I'm gonna make my balance sheet again accounting reports let's go into my balance sheet and then I'm gonna scroll down and say okay the checking account I got to change the dates okay so now the checking account down here should have gone down so if I go into the checking account and I'm looking for BBB sometime in December we're gonna say there it is there's the two thousand the other side went to the accounts payable and it's in an overpayment so I'm gonna go back so this time we didn't hit the income statement at all even though we paid the money we just said hey look we overpaid the payable account so now the accounts payable showing that we owe money to vendors has an overpayment that we can apply out directly so if I scroll this back down we're gonna say there's the overpayment if I go back to the first tab we can search that by the contacts all contacts this is the BBB and so there it is if I go into that item then now we have this overpayment if I go into the drop-down up top and I look at the pay bills bills to pay I've got that item here now if they're gonna refund me the money back and I gave them the money they're gonna give it back then I can record that down below or if I then got a bill from them I can apply this overpayment out to them that way so I'm gonna say okay let's just make a bill and let's say okay you finally gave me the bill that now I can I already paid you I don't know where the bill was before but whatever so now we're gonna say that they billed us for one two thousand dollar whatever thing expense so we're just gonna call it general expense okay and so then I'm gonna say record the bill which would normally increase accounts payable but it's saying hey you got this allocated credit so I'm gonna say yeah let's allocate that out allocate the credit and so there we have it so now those two things should match up with us Lee so if I go back to the business drop-down and we take a look at the bills to pay you've got those two things you know should be tied out and connected out ready to go and if I go into the contacts all contact looking at BBB detail then we've got then the bill paid and the overpayment hopefully connecting out properly there so those are some ways you might use those again you don't probably don't use those nearly that often but just want to touch on them