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Here we are in QuickBooks Desktop Bank feed practice file we started up in a prior presentation going through the setup process we do every time in the view drop down we got the hide icon bar open windows list checked off open windows open on the left reports drop down company and financial looking at that p and l profit and loss changing the range from 010122 123122 customize it fonts and numbers changing the font up to 14 okay yes and okay reports drop down again company and financial this time the balance sheet standard report going to customize it first change the range 010122 to 123122 then fonts and numbers to change that to 14 okay yes and okay now let's open up the bank feeds going to the banking drop down bank feeds we have the bank feed center which would only be there if you had bank feeds turned on which we did in a prior presentation we're now going to be going over to the unrecognized items we're looking at the deposit side of things I'm going to filter my transactions to just see the deposits and then I'm going to then organize them thusly and so now just a quick recap if I go back to the home page remember that we're thinking about the easiest system in general and then we'll take steps away from the easiest system focusing in on just the revenue cycle the ultimate end of the revenue cycle being cash coming into the company typically from customers the easiest kind of industry would be like gig work getting paid from platforms for example if you're like a youtube platform or a teaching platform or stuff like that and then we can wait till it clears the bank use the deposit form to record the income which is not natural for the accounting process because usually the forms to record income even on a cash basis is this create sales receipt and on a accrual basis it's the invoice so as we use the bank feeds we're going to think about what kind of tweaks we need to do given the fact that we're using a deposit form instead of these natural forms and then later we'll talk about using these other forms and how the bank feeds can fit into that kind of system so if I go into the profit and loss here we're focusing in on these income accounts and we're going to be able to see in the bank feed where the money came from so then the question is as I add them into the income accounts what accounts do I want to put in place this is where we're going to add more detail and this is where we're going to deviate from the standard rule of having fewer income accounts and not naming the income accounts after a customer and the reason we don't normally do that is because normally we can support what's on the income statement with these other reports the sales by customer breaking out income by customer and the sales by item breaking out what we sold in more detail items service items and inventory items we can't do that if we use the deposit form to record the sales therefore we're more likely in this kind of business going to just name our income accounts like amazon income or something like that okay so that's what we're going to continue doing let's go back to the bank feeds and let's just take a look at one of these like here's an amazon dot com now amazon's an unusual one here's just a good example of where you might have one platform that pays you for multiple different things and you can see this on both the income side of things and the expense side of things we have a similar kind of scenario where you're paying one vendor for example on the expense side of things for multiple different categories of expenses here we're paying we're getting income from one customer but they might be paying us for multiple things amazon might you might have video content on amazon prime or something that you're paying you for you might be doing affiliate marketing that you're getting paid for various other things there might be different locations that you would like to break out in some more detail on your account so that the ways we can break that out then is one they have differences in the name sometimes and then two they have differences in the bank memo and we can use that in the rules to allocate to different different areas as as would be applicable so let's let's first do let's just do this one so i've got see these two are slightly different so i'm gonna put this one and i'm gonna add a pay e now the next question is if i add a pay e do i just want to call it amazon or do i want to create multiple different customers we can do either way because we're gonna have to we might want to make a rule that distinguishes based on these items i don't need to create a different customer i could just say amazon and then make a rule based on the data here and the data here to apply different transactions however maybe it would be easier for me when i go to my vendor center to be able to organize my not the vendor center customer center if i go to my customer center maybe it would be easier for me to organize by customer and have different customers for the types of things that i'm being paid for so i'm going to close out the vendor center here that's going to confuse me close that out so i'm going to create actually different vendors here so i'm going to say this is going to be amazon dot com comma i n c and then i'll say a tab i'm going to quick add this this is going to be a customer so make sure i should make sure to change that one and then the account that it's going to go to i'm going to i'm going to pretend this this is amazon prime so i'm going to say amazon i'm just making this up amazon prime like that they're paying me for video content on amazon or amazon prime i'm imagining that so i'm going to say tab and we'll set that up and then it has to be an income type of account so i'm going to say it's an income account everything else looks good i'm going to say save it and close it and then before i add it let's make a rule go into the add more details i need a rule there are rules here this isn't crazy this isn't anarchy so we're going to go in here and say let's make a new rule and i'm going to have to distinguish it with this item and if that wasn't distinguishing enough then i'd have to also distinguish it from the memo information so i'm going to name the rule amazon and i have to name it something that's also distinguishing so i'm going to say income and then we could imagine all or or uh any i'm going to keep it at all the description here i'm not going to say it has to match but contains and in this case if i just go to amazon.com i and c that's enough to distinguish but if it were not i could add another line and possibly use the memo line which would then possibly have something in the memo that would be a distinguishing factor and i could say hey if it meets both of those conditions then you're going to then you're going to want to use this rule as opposed to possibly another rule you also could imagine that if the income is always the same for whatever reason you can use a amount condition and and use that one but in this case i'm going to close this back out and say let's save that and that looks good save it and close it so now that one has been pulled over here and then on the recognized transactions on the deposit side of things we should have that here's the deposit side of things these these amazon items pulled over not all of them though because we still have some other amazon items let's go to the deposits this way and then amazon there's still a couple other ones that have some different descriptions that didn't pull over with the rules so if i go to the balance sheet then balance sheet checking account now i might want to start filtering my checking account so that i could filter by deposits so this is a nice tool customizing i can then go into the filters and filter by type which is down here by type transaction type i'm going to just look for the deposits and that'll make it a little bit easier hopefully and so there's that amazon item i put in double clicking on it it's a deposit form we can see there double clicking on it there's the deposit form and there it is closing this out closing this out if i go to my customer center and the open windows now i've got my customer setup note you could add these items by just assigning an account without a customer but you don't want to do that because you want to have the added detail of the customer here note also that if i go into the profit and loss that i cannot sort this data with my sub ledgers if i go to the reports drop down sales and i look at my sales by uh by customer detail for example from 010122 to 123122 notice it only has that one invoice we made before it doesn't have i can't sort by customer here because i used a deposit form and and and that's not the form typically used so so that's quick book says that's why we have to add like the customer names in like the income accounts which we normally wouldn't do right so and then i can go to the reports drop down again i can go let's look at the sales by item summary uh and so once again 010122123122 this is the items that we would sell we didn't add any items because we just entered it with a deposit form so we can't have that supporting information this way either that's why we're more likely to add the names directly into the income statement income accounts all right let's do another one let's say we go back to the bank feeds and let's say that we're going to do a google one so here's google let's imagine that that we're what we're doing uh youtube right youtube thing so again and you might have multiple googles because here's another area where we've got google youtube versus google adsense so if those were different distinguishing in some way then maybe you distinguish those out i'm just going to call let's do google youtube once again i'm going to create a different customer if i'm going to create a different account as well which you don't need to do because you could do it with just the rule but it might make it easier to sort in your customer center the customers that are distinguishing what you what you use what you what the income source was so i'm going to say boom let's set that up quick add it it's going to be a customer not a vendor on account i'm just going to call youtube income right and that which is totally a generic kind of uh income i'm going to say tab and set it up and it's going to be an income account income account right there and save it let's make a rule for it hitting the items for the more detail i'm going to make a rule there are rules here here we go let's just make a rule this is going to be google youtube rule and then so so i'm going to make the description i don't need it to match but just contain but i want to make sure that it contains that component which is distinguishing from another item if it if it if it needed another distinguishing factor i might use the memo but we're good here so we don't need to add another line it's going to go to youtube income i'm going to say okay save it to the registrar to have them uploaded here and if i go to the recognized stuff and sort by the deposits now we've got google income let's take take a look at the balance sheet double clicking on the checking account customizing it filters let's look at the transaction type and the deposits and okay so now we should have one for google there it is and closing this back out closing this back out the other side's going to the income statement profit and loss now also note that some of these might be similar you might say well maybe amazon and google are like content income so you might create like a parent account possibly and have these subsidiary accounts to the parent account so you can collapse them and expand them with something like an arrow here so we might experiment a little bit with some stuff like that later so let's do another one here let's go back to the to the bank feeds let's go back to unrecognized sort by the deposits and then let's try another one with that amazon let's pretend that we had another amazon dot com and this california let's pretend this was book sales right here so we've got a book that we sold it's making massive revenue so let's say that this one is going to be uh and i'll make a net so again i could use the same customer and that would be fine because then i can still distinguish making a different rule to the same customer or i can make another customer so i'm going to make another customer amazon dot com but then dot california tab quick add customer not and then the account i'm just going to call this amazon book sales and then set that up as an income account let's just say income okay let's make a rule to it even though i don't think we have any other ones on this one but just in case we sell any more of these books i'm just making books up by the way so that looks good let's set up a rule and then we're going to say this is going to be amazon dot com dot california and we've got the distinguishing factor here i'm going to say description let's say it just contains i don't need this last payment bit just as long as it's got that dot california it should be distinguishing from the other rule so it should be good so we'll say save it and close it save and move on over to the register so then it's been added here i don't think there is any other ones that pulled over to recognize because this was the only one if i go to the balance sheet sort it or double check on the checking account customizing filtering and then checking it out by transaction type and saying we want to see just the deposits boom so there's the amazon here's the two amazons that one and that one and then this one is prime this one was the book sales we have to the split account right there and then if i close that back out on the income statement now we've got another category for amazon book sales which you can you can see this is getting quite a lot of income accounts which is unusual that you wouldn't normally do that unless you're you have this kind of gig work business because you might just call this you know all kinds of service income or content income and then break it out with the sub ledger accounts normally breaking out by customer and item but gig work kind of thing we're depending on the deposits therefore we don't have the sub ledgers so we might add more of the actual customers in the income accounts so let's do another one let's go back to the bank feeds and go okay let's try deposits again deposits and let's do audible so audible here i'm going to say so this is like audio books so i could say audible tab quick add customer and then we can say okay now like i said we normally we would make an account maybe called audio books and then the audible audible being one of the people that pay us to audio books if we had multiple of them but since we can't break out the detail i'm going to call it audible audible directly audible and i might say audio book income or just also say audible income audible income tab and then we'll say set it up and it's going to be an income account income and save it and then we'll go to the drop down and add more detail so we can do a a rule and let's just call it an audible rule an audible rule can you hear it it's an audible rule so there we're going to say it's going to be a description it's going to contain all i need is audible i don't really need the edi so that should do it right there let's go ahead and save it and save to the register pulls it over here and the other ones should pull over to the recognized area if i sort by deposit i should just add some of these there's the audible ones so if i go to the balance sheet double click on the checking account we can then sort the checking account filtering by transaction by transaction where's the transaction there boom deposit bam and so now we should have one for audible which is right there closing it back out and then go into the profit and loss the other side is in the audible income all right let's go back on over and say let's go to the bank feeds again and this time i'm going to go back to the unrecognized i'm going to sort by deposit and then let's pick up an interest income so interest income let's say that this came from the bank i'm just going to make a generic bank tab quick add which you could put as a customer it's probably more better other because you might have things going in and out related to the bank so we're going to say okay let's make it a customer and then there's nothing in the memo because it's just an interest payment so okay and then the account it's going to go to would be interest income because this is an increase for the income now if you had your chart of account set up from when you made up the the file you might have an interest income account we don't so i'm going to add it i'm just going to call it in interest income tab set it up now this one you could put in as an income a normal income account but because income from interest is not my primary income i would typically put it down here in other income so it's going to show up on the bottom of the income statement because it's not part of our primary income save it and close it let's add the rule to it add some more details a rule lot of rules here yeah this is if you're under my roof bank fees there's going to be a lot of rules around here interest payment so we're going to say this is going to be money in uh this is going to be all description match it just it's going to contain all i need is really interest maybe a payment all we need is interest i think and then it's going to be a bank that looks good let's save it and then save to the register so that should pull over here and in the recognized area sorting by the deposit we then have the interest items there they are here so let's go back on over to the banking i won't double click i won't check that one again because the banking is fairly straightforward we've got the increases there i'm fairly confident of on the income statement we didn't put it in the income side up top but made other income down here in the same area we put the unrealized gains and losses that being the difference so that now we've got income from ordinary operations and then the other kind of random stuff that isn't part of our normal operations to get to the bottom line okay so that's going to be the general idea of it so we've got a lot more kind of income accounts than we might have if we weren't in a gig war kind of situation we named them after like who actually paid us which is kind of unusual but something you often do uh if if you're going to try to record things directly from the bank feeds uh and that's going to be the the general idea so we got later we're gonna add we're gonna have to add all these rules stuff in here so we'll do that at some future point for now just remember it's useful to look at the trial balance to get an idea of where we stand from 010122 to 123122 let's customize it fonts and numbers and bring it up to 16 16 okay yes and okay so note if you can just imagine this being assets or know where the cuts are liabilities equity income which are all these income accounts now and then the expenses then you can and then other income and expenses you can then look at at this report as a nice report to check as you're entering or adding the bank feeds to drill down on to the transaction detail and the source documents to get a good understanding of what's happening