 Zero Accounting Software 2023. Bank feeds matching invoice to deposit. Get ready to become an accountant hero with zero two thousand twenty three. Here we are in our custom zero home page going into the company file we set up in a prior presentation the bank feed file. Duplicated some tabs to put those reports in like we've been doing every time right-clicking the tab up top so we can duplicate it we're going to right click the duplicated tab again and once again duplicate tab and back to the middle accounting drop down we want the balance sheet open tabbing to the right accounting drop down we want the income statement open let's change that range on the income statement back to two thousand twenty two we're going to try to be working in two thousand twenty two this time even though we deviated last time january to december of two thousand twenty two update the report let's go to the first tab and go into our banking information accounting drop down we connected the bank or uploaded the banking information for the bank account and we're going to go to the accounting drop down and account transactions now i've added a couple uh extra transactions here by simply let's go to the reconcile by uploading another set of data so if you want to do a similar practice i just made a nice little excel worksheet here and i and i put my data input in this format and then uploaded it similar to what we did at the beginning of the practice problem so we have some data in here so i'm going to say don't save i'm going to go on 10 sometime in october i made those items so here they are all right so now we're going to imagine a deposit type of situation where we're going to try to connect it to a little bit more complex of an accrual system that we have in our accounting system so to see that let's jump on over to our flow chart and this is a quick books desktop flow chart but we're just looking at the flow of the forms which is basically the same for any accounting system and we're on the revenue cycle noting that the easiest kind of thing we can do if we're trying to automate everything is to try to wait till the deposit clears the bank on the customer side of things and then just record it with the bank feeds to revenue with at that time with a deposit form but we can only do that if we're using a accounting system or if we're in an industry like gig work or something where we're just going to be able to let it come through the bank like a youtube or something like that and record it at that time if we have to bill someone then we're going to have to have an accrual system in place so for a law firm if we're a bookkeeping firm if we're landscapers typically we have to do the work first and then invoice or bill the client we call it an invoice because we're invoicing and that's the form terminology within zero invoice means that we're charging you can use them interchangeably in normal conversation however so be careful with these terms of bills and invoices from a zero perspective the invoice has a more specific meaning than it does in normal everyday language it means that we're going to increase the accounts receivable and the other side's basically going to go to sales generally notice that when that happens nothing happens to the checking account the sales are being recorded when we charge the client when we send the invoice when we send the bill out to the client and then we're going to receive the payment and then we could record the deposit so notice there's kind of three steps here and you can think about well how would the bank feeds fit into that system so normally if you're doing the full service accounting system you would invoice the client you would track the accounts receivable then you would receive the payment and make the deposit either at that point in time or have an extra step that you would then make out of the deposit and then the bank feeds would fit into that in step by matching to the deposit you would not be recording anything with the bank feeds but simply helping with the bank reconciliation however you can imagine a system where you're like well maybe I can match the bank feed deposit to the invoice and allow the system to do this next step right so that might work in certain circumstances so for example if you send out an invoice and then when someone pays you you say just wait till it clears the bank and then when it clears the bank I'm going to try to tie out what cleared the bank with the bank feeds to the invoice now that would only like work if the amount hitting the actual bank statement is going to be the exact same amount as the invoice which often would be the case for larger invoices for example but if you have a collection agency in the middle like a PayPal or a stripe or something like that that's going to mess up your system because they're going to group a credit card company right they're going to group multiple payments together and then deposit it into your account as a lump sum so you're going to have to get a workaround to kind of figure that out but if you have if they're if it's just like an electronic transfer or and they're going to have the same amount hit your bank account as what was on the invoice payment by payment you might be able to connect the payments to the invoice now the reason we have this intermediary point right here of the received payment in our flowchart is that sometimes like I say if you have a credit card involved or cash is involved you might then be collecting multiple payments that will actually hit your bank account in a group sum as opposed to individually which means you might need to put the money into like a clearing account or something and then transfer it to the bank account so that you can connect from the from the bank account to what's in your books and reconcile possibly with the help of the bank feeds so we'll talk more about that later let's look at this first method we're going to say all right I'm I'm going to kind of work backwards here here's the amount that cleared the bank let's imagine that before this happened before october 21st we entered in an invoice and then we're just going to wait till the invoice clears and try to tie this amount to the invoice so if I was to do that let's make an invoice I'm going to say uh plus button we're going to make an invoice and let's say our customer let's just say customer number two this time and let's make it october 1st or something uh of 2022 october 1st let's say and tab through this and then we sold something I will add an item I'll just say we sold something here uh one for 200 or 510 dollars I think it was 510 and we're not going to have any tax applied to it so I'm going to say no tax if tax was applied you can you know the tax would be calculated here and the system would still work so I'm going to say sales tax tax exempt so what's this going to do when I record it it's going to increase the counts receivable by 510 and the other side's going to be going to the uh sales account which I'm going to apply here let's do that sales sales account okay and so I'm going to I'm going to record that so we'll say okay let's approve that and then uh complete the description field it wants a description sales approve por favor and it is content okay so then if I go to the my balance sheet and update the balance sheet now we have in accounts receivable if I go into the accounts receivable we've got the 510