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We started up in a prior presentation going through the setup process we do every time maximize on the home page to the gray area in the view drop-down we got the hide icon bar open windows list checked off open windows open on the left hand side going to the reports drop-down company and financial looking at the profit and loss the P&L the income statement range and change in 010123 to 123123. Let's customize it so that we can go to the fonts the numbers and we can change the size of that font to 12 okay yes please and okay the other big report reports drop-down company and financial this time the balance sheet report customize it the range ins they are a change ins 010123 to 123123 fonts and numbers let's change the font size up to let's go to 14 I think that was we can make it to 14 without any problems and then let's open up the trial balance to we're going to add that to our routine here at least for now accounting we'll see if it sticks forever accounting and taxes trial balance this time ranging to the change ins the range ins they are a change in 010123123123 I had to say that and it messed up my whole process customizing and then fonts and numbers changing the font let's bring this one up to 16 we're getting crazy get crazy there we go okay and there we have that that's the setup for a process we do every time or at least a variant of it going back to the home page in the prior presentations we have been entering invoices now we're going to do the double step action of receiving the payment and then recording the deposit so just a quick recap that when you have the revenue cycle the customer cycle the accounts receivable cycle we might be at a cashed based system or we might be on an accrual based system and that's not just by choice but by design of the in the kind of company we are in so if we have to basically bill the client for doing the work or providing the inventory before we receive the payment then we're going to create an invoice that's going to go through accounts receivable if we're at the check register for example in a store situation that's when we get paid at the same point in time and that's when we create the sales receipt and you can even go a step further than a cashed based system which is one where we're getting a sales receipt to one where it's not really designed in quick books to use this way but simply recording the deposit to revenue or sales when we get the money possibly if we have like gig work if you got paid by YouTube or something like that you might use the deposit form but these two forms are the two forms that are typically going to be used we're talking about an accrual process here where we created invoices in the past now we're going to go to the receive payments remembering that when we receive the payment we could deposit it directly into the checking account at that point but the default is that we put it into undeposited funds and we're going to keep that as the default so that if there's any grouping of those payments having multiple payments for example that will be put into the bank in one group some such as if we have credit cards or if we have a cash type of payments then we can then group them with the deposit matching or matching up grouping together sales receipts and receive payments so that the amount that's in our system as a deposit matches what the grouping will be on the bank statement making the reconciliation process as easy as possible let's first go to the customer area going to the customer drop-down customer center we're imagining we're going to get a payment from customer payment from Anderson let's say Anderson right up top if I look at all the transactions for Anderson I might select transactions say invoices maybe I could drill down on the invoices and maybe I just want the open invoices there's the open invoice that we're going to receive a payment if I double click on that I could go to the receive payments up here that's one way we could get there I'm not going to do it that way this time I could close this out we could also search for the invoices in the transactions area invoices open invoices for example and look for the invoices that way or I might just go to the homepage and this is the way we'll do it this time and just say hey I had an invoice now I'm just going to receive the payment I'm going to just type in who I received the payment from Anderson you could see it pops up in the drop-down we're going to say okay there it is there's the invoice so if I just click on the invoice then it'll populate the amount up top if I received an amount other than that then I could adjust it I could adjust the amount that we got paid which would still leave an outstanding balance on the invoice so just note that you have that option but by default it will then populate the amount up top here if you click on the invoice and so then the date let's say it's going to be the 25th of the 2023 then how did we get paid is it cash is it check is it credit card each check mainly these are going to be kind of referential tools that might help us to do sorting of transactions we're going to imagine it's cash even though it's a large amount because we want to imagine possibly grouping the cash payments together when we make one deposit of multiple customer payments if it was a check it's more likely if we always get checks or electronic payments that it will go into our bank account in the same format as the as the customer payment each one of them being separate if it's a credit card it's more likely that it's going to have a grouping situation that we want to go through undeposited funds also note though even if you get a check or transfer each check that's always the same grouping one customer check at a time you still might want to use undeposited funds because that allows you to then use the deposit form as the only kind of form that really increases the check in account which can help for your sorting so I still kind of like that system in any case and note that we have the option here that option is found in the edit drop-down preferences if you go to the payments right there customer this is all checked off by default you have to uncheck it in order to get the this little field here to give you the possibility of depositing in the checking account if you so choose what is this going to do well it's a customer payment that means it's going to decrease the accounts receivable that's what it does the other side by default goes into undeposited funds a clearing account in essence a cash account but not a checking account and that's what we will do so we're gonna I'm gonna close it I can't see that the blue button because I've maximized my screen too much I'm just gonna X out and say yes record it and then I'm gonna go into the balance sheet and we can go it's not in the checking account it went into undeposited funds double clicking on undeposited funds there's the payment boom double clicking on it there it is closing this out closing this out remember that it's undeposited funds is a clearing account essentially a cash account but not a checking account therefore it's not under the checking category because this account kind of checking accounts are accounts that have a different functionality in QuickBooks such as the possibility to connect to bank feeds so the fact that this acts like a in a other current asset account even though it's kind of a cash account is why it's down here that's a little bit confusing but it is what it is so we're gonna we're gonna clear that out and make the deposit with it shortly putting it into the bank account also note if you go to the home page we've got this little one which indicates that there is a transaction that was made from either a receive payment or create sales receipt that represents what is currently in the balance sheet account of undeposited funds let's do another one let's go to the customer center again I could do that by clicking here or in the open windows when the drop down I can go to and I'm gonna imagine we got a payment from Eric music and once again I could sort all day all items I might sort by invoices here and then maybe the open invoices there's the invoice that I want to be dealing with I could also find that by going to the transactions I can go to my invoices notice the if I go to all invoices these are the ones including the one that I just have received a payment on which which by the way if I go back on over here and say that we're before music store stuff and I look at all transactions all transactions for all dates was it music store stuff no it was Anderson guitars so if I go into Anderson guitars you could see now we've got you we've got the payment and if I if I look at just the open invoices now there are no open invoices right and if I go into all transactions and I look at one of these invoices then it now shows as paid here paid I can also look at the C history and see you know the information related to that we haven't yet deposited it so I'm gonna close that back out and so that looks good now I'm gonna go to Eric music and so there's the invoice there let's this time double click on this invoice and then I'm gonna make the receive payment from it by clicking the receive payment up top and so now it's gonna populate Eric music it's got the invoice checked off if I double click on this invoice it takes me to the actual invoice closing this back out the amount looks good I'm gonna keep it as cash even though that's not likely we would get 30,000 for 15 cash but we'll keep it there and we're gonna go to undeposited funds so what's this gonna do decrease the accounts receivable for Eric music and the other side's gonna go to undeposited funds let's go ahead and X out and save it I'm gonna save it by xing out and let's first look here so if I look at at Eric music now if I was to look at just the invoices for example there's the invoice if I was to say let's just look at open invoices we don't have any because now it's not open anymore if I go back to all transactions and I double click on this invoice we can see it as having been paid here so that looks good and then if I go to the balance sheet we can see in undeposited funds double clicking on it we've got the the amount here for the 30,000 450 closing that out the other side in accounts receivable Eric music 30,000 450 we can also see that same kind of stuff with the sub ledger for accounts receivable which we would probably do in the customer center as we saw but the sub ledger will see how it ties out to the accounts receivable of that 12,000 750 750 so if I go to the customer receivable customer balance detail then we've got Eric music that's what we expect to see it going up with an invoice down with a payment that's the normal cycle we would see with all the accounts receivable the amount totals out to 12,000 750 750 which should match out what's on the balance sheet 12,000 750 750 now we're gonna put that stuff in the bank so we're gonna go to the homepage this is the cycle that we would imagine happening we're gonna receive payments during the day if they're cash payments or if their credit card payments or whatever and we're gonna be receiving the payments for the sales we make in the store and whether their cash or not let's imagine their cash here credit card has its own grouping system that we would have to get down with the credit card company but if they were cash wherever we got the cash whether it be from receiving payments that were first invoiced from or from the create sales receipt at the check register we want to deposit that cash into the bank at the end of the day when we make the deposit in the bank we're gonna make one deposit that's the idea therefore I'm gonna click on both of these also remember that that red two just let's close that out that red number two represents that we've got something from these two items that red number two represents there's two items that are making up the balance currently in undeposited funds on the balance sheet which we now want to make deposited into the checking account some and also note that if it wasn't connected to the sales receipt or the receipt payments and I was doing something to the checking account I might use the check register that would be the easiest way to do the data input or bank feeds if you were doing the bank feeds but because it's connected then you got to think about how it's going to be connected and therefore the record deposit is a perfect form because of this pop-up which allows us to check them both off showing the 3407 250 which is the amount that will then show up on the checking account detail which will allow us to reconcile to the amount on the bank statement from the bank which will be the same grouped amount it will also give us the two separate amounts that will show up in the undeposited funds so that we can see the activity broken out in the undeposited funds in the clearing account it going up and down so we've got Anderson guitar so dates going to be the 125 decrease in the checking account the other side is is going to bring undeposited funds back down to zero the clearing account undeposited funds went up went back down or will go back down once I save it and close it let's do it now back to the balance sheet so if we go here we could say okay the checking account should have going up it goes up by the one lump sum 347 250 double clicking on that even though there's these two line items it goes into the checking account as one lump sum that amount being the amount that we expect to see in the bank statement making reconciliation easy and then we got the split account it's split here even though the other account is only undeposited funds because there's two line items that's kind of one of the downsides of QuickBooks is the fact that it ends up with those splits because of the way it does that instead of being able to show us the one other account that's impacted in that one line item but that's that's a picky you know every accounting in QuickBooks does a pretty good job of that kind of stuff but in case you can't see the other item here so you'd have to go to customize up top and you'd have to go to advanced and I want to see all the active items not just the zeroed ones because it went back to zero then I can see the zero and I can double click on it now normally I would be using the trial balance which has that as the default if I'm just kind of checking transactions and using the zoom feature so notice it already has the default of this anything with activity being present if I go into it notice those two deposits are separate line items which is important because you can see it go up and then down you can see the clearing you know tying itself out whereas if you had just one line item it wouldn't it wouldn't tie together so it's nice that it's broken out here in separate line items and it's nice that it's grouped together up here in the checking account so that you can use that one line item to reconcile to what's on the bank statement which will be one line item when we do the bank reconciliation which will do in a whole another section alright so that's basically it so that's it so then we can check your numbers here on the trial balance which I think is the best place to do that if you have any problems then you can try changing the date range and drill down on the data to change any dates if you have an issue we will be working a transaction detail report at the end of the month entering of the transaction which can help to check the numbers at that point