 zero accounting software 2023 credit card bank feed add data from the bank feed so that it is used to help create our financial statements get ready to become an accountant hero with zero 2023 here we are in our first a word from our sponsor well actually these are just items that we picked from the YouTube shopping affiliate program but that's actually good for you because these aren't things that were just given to us from some large corporation which we don't even use in exchange for us selling them to you these are things that we actually researched purchase and use ourselves Bayer dynamic not sure if I said that right but this is the DT770 Pro 250 OHM studio reference closed back headphones I wear headphones basically every day for a large part of the day they are important to me therefore I've going through many different kinds of headphones I've had these for some time and they've worked quite well they fit over my ears but I'm still able to put my glasses on under the headphones the headphones not pinching too tight on the glasses to give me a headache which is nice the quality of the patting is good and it has lasted for some time I've had these for some time now and they haven't gotten all torn up on me or anything like that I also like that I have a cord when I'm doing my recordings as opposed to a USB centered headphone because that frees up a USB port and I find the USB headphones to be less reliable they come with an audio jack that looks like this which is useful for me because that plugs into my audio interface however if you want to use the headphones for some other purpose I believe it's fairly easy to get a converter to other types of audio jacks if you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accounting instruction.thinkific.com where we have many different courses you can purchase one at a time or have a subscription model given you access to all the courses courses which are well organized have other resources like Excel files and PDF files to download and no commercials. We're custom zero homepage going into the company file we set up in a prior presentation the bank feed file we're gonna duplicate some tabs so we can put those reports in them as done every time 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 back to the tab to the middle accounting drop-down opening up that balance sheet report as it's thinking tab into the right going to the accounting drop-down opening up that income statement or profit and loss report putting a date range on the income statement hit the drop-down we want to go from January but 2022 because that's the date of our bank feed information on the 1st of January going to 2022 December 31st and then we'll update the report back to the first tab where we have been uploading our bank feed information accounting drop-down the bank feed information including not just the checking accounts but also the credit card accounts are up top and the bank accounts because we've uploaded them connecting to the bank or uploading the transactions in a prior presentation this is our credit card now prior to this I have been hitting the drop-down and go into the account transactions and I've noticed here it's a little bit easier to just hit the credit card item up top and that takes us into basically the same area where we have the account transactions the bank statement stuff the cash coding which if you don't have that you can turn it on and the reconcile nothing's on the account transactions side of things because we're not usually entering anything on our side first but typically depending on the credit card statements this information pulling in from the financial statements to make the transactions so we're not doing a full-service accounting system here really we're making our books from the bank feeds because the electronic transfers were assuming they're pretty dependable and they transfer fairly quickly so I'm just gonna do we're gonna do this fairly quickly because we've seen we've seen these kind of transactions on the banking side the only difference here is that most of these will be payments for like goods and services so we'll have expense forms typically and and that's going to be and that we're we're gonna have a liability going up instead of the credit card going down and then when we pay off the credit card we'll have these payments now I'm not going to enter these the the payments of making the payment or paying off the credit card yet we'll do that in a future presentation that one's going to be a bit more complicated not really complicated but for example if I go to the balance sheet over here you can see that if I had a checking account transaction and I had my credit card which would be down here in the liabilities once we start adding stuff to it when I pay off the credit card from the checking account now I have transactions that involve only two accounts both of which are connected to the bank feeds so now the question is well how do I deal with that right because they're going to be showing up on both sides so we can basically enter the transaction from one side and basically match it to the other side so we'll talk about you know that in a future presentation right now we're just going to record the charges that happen so let's start with that so we'll go down here like here's Costco now Costco is one of those items were like if you were to buy business stuff at Costco then you might normally buy supplies but you might sometimes be buying stuff that is for for equipment or something like that or you might have personal stuff that you're buying from there so so you want to set up your rules in such a way that you can automate whatever is happening going forward I'm just going to assume all the stuff from Costco is going to be supplies so I'm going to say add the details here and I can say who is it going to now I don't want to say the whole thing here I'm just going to say it's going to Costco I don't really need the dot-com just maybe if it just has Costco that's going to be my contact and date is good and we could just like we saw with the bank feeds possibly have items but normally we're not going to have items because those are going to be like the inventory items usually we're going to be using this to pay for like expenses like supplies which I'll put on the description and then the account I'm going to put supplies do I have a supplies account we don't have one let's make a supplies account so I'll hit the drop down we've just got to tell it let's make it six zero three zero let's say adding an account making it this thing as we go I'm going to type in the number 6030 the account type is going to be an expense account as is typically the case when we have credit card transactions although we might be purchasing equipment for it I'm going to call it supplies which would be an asset account supplies I can't spell and talk at the same time well then stop talking because we've heard enough of your rambling I have to talk that's my job talking is my job so let's go let's go up top and make a rule for it now I'm going to hit the drop down I'm going to hit the drop down and then create a bank rule the bank rule and so I'm just going to say if it contains this item so the same bank rule setup we saw with the checking account I'm going to say if it if it has any text field I love that any text field thing and if it contains not equals but just contains and all I really need is Costco if you see Costco in it that's all you need to see that's all you need to see man but note that if we bought other stuff from Costco then for example we might have a dollar rule we might add a rule and say if if the dollar amount is over we'll talk more about those kind of rules later but if it's over a certain amount then then don't apply the rule or something like that right we could try to restrict the rule to help us see what we purchased or we might have different locations of Costco maybe maybe we have Costco from different areas and some of that other bank text would give us an indication that this is going to one location versus another allowing us to maybe break out our information by location with more complex rules we'll talk about more complex rules in future presentations so we'll just keep it here for now and I'm gonna say this is costco costco is our vendor did I spell it wrong I'll just copy it down here we'll just copy it so you don't I don't want to look stupid for spelling it wrong costco okay and then then we're gonna say the account is gonna be supplies supplies hundred percent go into supplies and well I've been putting this to the reference up top and then we could apply it to now the credit card or I can apply the rule to all accounts so I might say hey if it goes to the checking account or the credit card if it says Costco then do the Costco thing I don't want to name the rule that whole thing I'm just gonna name the rule the Costco rule it's just the Costco rule you don't have to all the other garbage in there and we will save it and see that it should apply out the Costco rule so boom it applies it out and now going forward it should be as easy as just adding clicking them off and saying yeah that looks right yeah that looks right the rule has been applied if I want to look at the details and say you know what k posse down here there we go and so we're like yeah I think I think that's it so I'll save it let's go ahead and do that one and say okay doke it's perfecto just like Mundo would do it Mundo is my friend he's a perfectionist so I like to say perfecto Mundo you know because it's we did it perfecto just like Mundo the perfectionist would do it let's go to the balance sheet and update it and now we can see that if I go down to the liability account we've got the credit cards and now instead of the cash account going down just like we have at the beginning where we had a liability going up because we overdrawed the checking account if you've been following along with our checking account stuff we overdrawed it and so we had a liability that's what's happening here we it's kind of like the bank account except we're overdrawing it that's what a credit card basically is right there we're overdrawing our bank account kind of you can think of it as and we're gonna have to pay it off in the future and they're gonna hit us with penalties when we do that and so they're really suckering us in putting us in the hole and then they're gonna crank up the the fees and the interest like when we're down when they're when you're down that's when they kick you okay but no we will pay it off monthly and so there's that anyways I'm gonna go back to the other side we're gonna update it here and then we can see down here we have our supplies pulling in boom supplies and that should be automatic going forward automatic so and and we have using the spend money form so if I go into it it doesn't take me to the bank fees if I drill back down on it it takes me to a spend money form so the same kind of form except we're spending money you not from a checking account but from a credit card type of account right so if I go back over here by the way if you hit the drop down and you say you're gonna go into a spend money form then now you have this other option of a credit card so the spending money from the credit card is spending money that you don't have versus the checking account which is spending money which theoretically you do have although we did that before even though we didn't have any money in the checking account but that's just because we didn't put our beginning balance in and we'll talk about beginning balances later so let's just keep on adding so here's a CSV let's say this was for for gas or something so I'm gonna say edit here and I can say it was that and if and then maybe this was for gas all right let's put it for auto and then gas so here's where we have our option of let's hold on I don't have that let's think about it for a second uh 6040 let's add an account 6040 it's gonna be an expense type of account an expense type of account and then I'm gonna call it auto and then gas now note gas has one s I think note that if you have multiple things related to the automobile then you you could group the accounts together so you might you might put multiple accounts in there breaking out your autos and then with this great tool of zero with the edit layout group them together so for internal reporting you can break out the detail possibly for taxes or something but for external reporting you can collapse them into one auto also note that for taxes in the United States you're gonna also have to deal with the fact that you might be on a mileage method versus a direct method and the automobile kind of kind of kind of messes things up in that area as well but I won't I don't want go into that so hold another tangent that it's for another time and another place because we don't we just don't have time for that man I don't have time for that right now okay so so we added it and let's go ahead and say okay and then if I go back on over the credit card is going up we just owe more money again this is getting ridiculous I'm just getting nervous but I at least I can drive my car now because I put gas in it a little bit of gas that's not gonna take me are you sure that was gas that's not gonna fill up the tank you just barely putting it you just put enough gas in it to get to the neck to get to the all right so board of accountancy let's say this one is like dues of some kind so let's say that I'm just gonna add the account and then do a rule so I'm gonna say it's gonna be 6 0 5 0 and let's say that this is 6 0 5 0 it's gonna be an expense type of account and we're gonna call it dues and subscriptions alright once you have some courtesy for the person that's gonna drive the car after you you just put another whatever whatever I don't want to get into it I'm gonna say save it there's an error tax tax it's not tax exempt alright let's try it again I'm still just pissed about the whole gas situation it's hard to concentrate so annoying inconsideracies gonna add that let's go ahead and reconcile it and then if I go to the first tab and update the credit card has going up again and on the income statement we're gonna have the the the dues now in play alright anything else that we can add here now these are all gonna be payments so these that like the 4 7 7 29 you would think would also be on the other side on the checking account let's check it out this is on 8 7 4 7 7 8 7 4 7 let's go to the bank accounts and let's go into my checking account I could just do it by clicking this thing here it's way faster it's a whole let's say it's like two clicks right there two clicks off my life that I get to save and do other stuff with so there's four seven seven twenty nine see it's a bank feed-to-bank fee transaction so now I need to kind of match those those two out so I can record it on one side and then match it to the other so we'll talk more about that in future presentations it'll be great and so we can see that we've been constructing our books as we go got a more detailed income statement let's take a look at the trustee trial balance we can look at that beautiful creation that we have been making this is better than I'm the we're like artists over here this is better than modern art you know there's a modern art where they like where they like staple the banana to the wall or something and call it art this is like way way more creative than more creative than what's going on in the writers guild like in Hollywood and stuff the stuff they're cranking out it's got it's got no it's got no soul man but this is like look at this look at what we put to get so in any case you got the balance sheet on top of the income the balance sheet stops at equity and then we've got our sales and we've got our new expense accounts that we created down here debits equaling the credits which is the double entry accounting system functioning if I go to the balance sheet same thing as the balance sheet being in balance in that the assets equal low liabilities and the equity how does the income statement fit into the picture it squished into the equity section one number seven six six one twelve if I go to the income statement and make sure that income statement is up to date that number is the bottom line of our performance statement our income statement seven six one twelve on the trial balance however we don't have the income statement in the equity section on that one line item it has not yet ruled into the retained earnings but rather is broken out on the line by line breakout which is why the trial balance is actually more efficient of a report to be looking at and the double entry accounting system expressed in debits and credits is also more efficient oftentimes if you can get a feel for how that works