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Courses which are well organized have other resources like Excel files and PDF files to download and no commercials. Here we are in our custom Zero Home page going into the company file. We set up in a prior presentation that being get great guitars. We're going to duplicate some tabs to put reports in like we do every time. Right-click in the tab up top so we can duplicate it. Back to the tab to the middle. We're going to the accounting dropdown and the balance sheet report. We'll tab to the right then accounting dropdown. We want the income statement, but this time the comparative income statement. We set up in a prior presentation comparing the current month, February that we are working in to the prior month we did data input for January. Going to the tab to the left so we can change the date range, date range change, customizing it. Drop down to 2023. End of it and update the report. Going back to the first tab, we're going to imagine now that we're in a system that's similar to what you might see in a job cost type of system for a service industry. Something like a CPA firm for example or a law firm where we have staff that is doing work. They're accumulating time and we then are going to collect their time sheets periodically and put them into the system so we can bill our clients or customers. But in our case, we're not talking about accountants, lawyers. We're talking about guitar instructors. We've got our guitar instructors doing work. They're doing lessons and they're going to give us the time sheets of who they did the lessons for so that we can do the billing process for them. Quick look at our flow chart. This is from QuickBooks desktop, but we're just looking at the flow of activities to get an idea of what we're doing here from an accounting flow perspective. Now notice that oftentimes if you had someone set up as employee's, then you'd have the employee's cycle. Remember that the employee's cycle would normally be just an easy thing, just like another vendor cycle type of thing, except that you often have to deal with laws and regulations such as withholdings in the United States, for example, which makes the payroll cycle much, much more complex that you have to deal with. Obviously, if we're collecting time, we might need that to help us to populate the payroll cycle because we'll need to enter the time if we're paying them hourly to calculate payroll. However, it could be the fact that we pay people on a salary basis, which is often the case in a law firm or a CPA firm. We pay them salary, but unfortunately for them, they still have to track their time oftentimes. Because they have to give us the information on who they worked for so that we can take that information and help it to bill the client out for that time. So we still have the issue of entering time, not necessarily to process the payroll, but in order to basically bill the clients. We're going to get the information in some format from our staff, in this case, our guitar lesson, instructors, and that could be inside of a zero system and our payroll system or something like that. But it might be in another system that we use just to track the time. It might just be handwritten. It might be in an Excel worksheet. And we're going to get that periodically, possibly at the end of the week, the end of every two weeks, or the end of the month, for example. And then we will use that to go through our billing cycle, putting that into the system so that we can, uh, bill the clients for it. So if we're going to do that over here in zero, oftentimes we're going to set up projects to do that. So we can set up the projects because the projects allow us to bill, uh, within the project. Now, remember that the project is linked. It's kind of like the new system for a job cost system. So it's kind of like what you would think of as jobs. Oftentimes that's how it's often used. So typically we would have a client. Set up and then we could set up a project, uh, related to that client. So let's first see how that would work. Um, we've, we did a little bit of this in the first month. Let's, uh, reiterate it here. So we're going to go to the contacts. And let's say we set up a new contact. And I'm just going to go totally generic this time and just call it customer one. Yes. That's how imaginative we have gotten here. That's the level of imagination that the accountant has fallen to. We're just going to use customer one. All right. And then we can go into our projects. Go into all projects and let, and so these are the project we opened up last time. We had a closed one. I had an open one, but we're just going to add a new project for customer number one. So I'm going to hit the drop down and say, we want a new project and I'm going to make it in progress, a new project in progress. And we'll say this is going to be for, uh, guitar lessons for customer. I'll just say customer one. I'll repeat it a little bit there, even though it's going to be connected to customer one. So, uh, so there we have it. And then, uh, Oh, hold on a sec. I put it in the wrong place. This should, I'm just going to copy that. And this should just be customer one. I think I hope that I didn't add that other one. Maybe I did. That's not, but then I'm going to say it's guitar lessons. The project related to customer number one. Okay. And so I'm not going to put a deadline, estimate, calculate, estimate, and so I'm not going to put a deadline, estimate, calculate, uh, from tasks and estimate expense. I'm not going to put anything there who can view this project, public anyone with access to projects that's good or admin. I'm going to keep it as is. We'll add it in. So now it's automatically going into the project now. So if I, just to show that, if I go into the projects, all projects, here's our project. Now, filling time out for guitar lessons, then we can do that a couple different ways. There's a couple things that we wanna keep in mind. We can add basically a task. So if I go in here and add a task, this is going to be something that we can then add when we're applying out the time. Note though, you could add a task that doesn't have an item related to it, but oftentimes you'd wanna set up an item. So if I start typing something in here, you could see our items are pulling up. If you have a standard item that's in your service items, along with the inventory items that usually populate the invoices, that's a little bit more permanent. And when you have multiple clients, then it might be a little bit easier to pull that item and kind of standardize that item as opposed to putting a new task every time that it's not related to an item. So oftentimes I think the way to go here would be to go to your items, set up the item, and then add the task. Also, we saw last time, another component which is a little confusing, but once you get the idea that it's not too bad, if you go to the staff items, these are the staff that we can basically track the time for. Now, we could set up a cost for these staff members here. We can have a cost related to them, but you gotta be careful with that because this is not the amount that we're actually gonna charge the client for. And there's actually not gonna be a transaction on the financial statements related to this cost. This is just gonna be an internal thing for the job. And you would think the items that would comprise this cost would be things like if I look at the income statement, the wages, right? We've already calculated it in wages, but we're allocating some of the wage line, the stuff we actually pay to the job as we allocate the time over. So it's an internal kind of reporting thing. It's not gonna report anything new onto the financial statements. You have to keep that in mind when you're trying to tie in your project reports to what's on the financial statements if you're using this item. Also note that I believe there's unlimited users. So you have to add the user in order to be able to add them here. And so what's great about zero, unlike some other softwares like the chief competitor QuickBooks Online, I believe you can add unlimited users, which is great. And to do that, you can go to the dropdown up top. You can go to the settings and you can go to your users and then you can add your users and give the necessary permissions in order for the users to populate. Okay, so now I'm gonna go into our items. So I'm gonna go into the business dropdown, products and services. And I'm gonna add an item that I can pull on over into the task and then I'll enter the time related to it. So here's all of our items. Now, I could just use a generic, the hourly service or something that's already there, but I'm gonna add a new one. I'm gonna say we want a new item and I'm gonna say it's gonna be guitar lessons. And this is for, let's say we're gonna say guitar lessons, we'll just call them guitar lessons one. And I'm gonna put that as the same name and code guitar lesson one. I'm not tracking any inventory because it's a service item. I add item to build purchase order and other purchase transactions. We're not gonna be purchasing anything with this one. We're just on the sales side of things. And so the sales price I'm gonna say this time is 75. And then the sales account we're just gonna set up to be, I think we'll just put it into the service items. All right, so that looks good. So I can save it there. So now we've got our item set up for the guitar lessons. Okay, now let's go back into the projects. So I'm gonna go into the projects. Let's go into project number one that we set up. And now I'm gonna add a task. So I'm gonna add a task and that task is gonna be like the items that we're gonna be pulling in here within the project. So I'm just gonna pull in that same item that we just set up. What did I get? I can't remember what I called it. Guitar lessons one. Guitar lessons one. And the estimated hours, I'm not gonna put any, but the hourly charge now is at 75. So I'm gonna say, okay, so now every time I add a new project, I can add the task that will be somewhat standardized because I put it in place as an item and it'll pull in that $75. Note that as I add the item, I might assign guitar lessons for per my instructor. So notice if you have a staff of employees, you might, for example, charge people based on who's doing the work. You might have a billable rate, which is different than the amount you pay them for payroll. It's gonna be higher, of course, because you're trying to make money that you're gonna bill them out at, or you might just say, whoever's working on the staff, I'm gonna bill out in accordance to how much time it took, right? So those are the, so let's go ahead and say save it. And so there we have that. And now let's enter some time. So I'm gonna say, all right, add a time entry. Now I'm imagining that our staff member just gave us the project is one, yeah. The staff member just gave us a time sheet in Excel or something like that to track how much work they did periodically. And then we could just enter that into the system with a time entry. So I'm gonna say it's a task. I'm gonna say it's a guitar lesson. That's the task that we have set up in here. Description, I could put the same thing. Guitar lessons, did I spell that right? I don't know, duration. And then we could put the start and end point, but I'm just gonna put the duration because I'm imagining I'm just doing the data input from the physical time sheets and that would be the easiest thing to do. So they gave me the weekly time sheet. I'm saying, oh, okay, so for the total of this particular customer and this particular job, you had four hours, we're gonna say, all right, four hours on the duration. And then with the date, let's bring it to the end of Feb. Feb, let's say Feb 27 or so. Let's do something like that. And then the staff member, let's say it was Jane, the other staff member that we had set up to be able to apply out the time. So that looks good. So we're gonna say, and notice this item here, whoever did the work might line up. I might make a task that says Jane's hourly billable rate or something like that. Or I can have these things different and then whoever did the work might be different and it'll have the same rate for whoever did the work. Okay, save it. So if I save it, then you could see it pulled into to be invoiced over here. Time and expenses are at the 300. If I go into the time, then there's the 300, here's our time. If I wanna edit or delete it, I have that here. Quotes and invoices and then our profitability pulled in the amount that we're charging. Remember, based on Jane's cost, but this is the side that's not actually gonna record anything new to the financial statements. The billable side will pull in and record revenue when we invoice it and we'll see that on the revenue side. So this isn't reported to anything new on the income statement. It's just basically allocating, say, hey, look, some of that wages or whatever we're allocating over here, generally, because that's the estimated cost for the internal projects report. So that's important to keep in mind. If you're trying to tie the projects reports into the actual financial statements. All right, let's set up another customer and say they worked for another customer as well. So I'm gonna go back to my projects and let's try to set the project and the customer up at the same time this time. So I hit the dropdown. I'm gonna say another one, and this time I'm gonna say this is gonna be customer, I already have customer two. Let's just pick up customer two and I'm gonna say this is gonna be guitar lessons for customer two. And then we'll say calculate from estimate, everything else looks good. So let's create it. It will then open up. So now I'm in the customer two. I have to add a task now so that I can enter the time in the same way. So I'm gonna say add a task and I'm just gonna call the task the same one, guitar lessons, which are pulling in from the items. So now it's standardized whenever I pick that one, it's gonna be at that 75 because it's pulling in from the items. So I'm gonna say, okay, let's save that. And then I'll do another time entry, add, and then a time entry. And the task is gonna be the guitar lessons. That's the only one we've set up thus far. I'll call it guitar lessons here as well. And we're gonna imagine that Jane also did work for customer number two for four hours. So Jane worked total of eight hours according to her time sheet, one for customer one and one for customer two. Okay, so we'll save that same kind of thing. You got the 300 here. You've got the time, profitability pulling through and so on and so forth. But hold on, I'm gonna go back to the time I missed up the date again. Edit, let's make sure the date is in the timeframe we want it to be in. Don't get ahead of yourself. Don't get ahead of yourself. But I'm so slow, I hate waiting for myself. All right, here we go. All right, so now let's do another one and we're gonna say, we're gonna start another, two more of these, we're gonna say, and this is gonna be for our second billable person here. So we're gonna say, let's go, actually let's set up the billable rate again. I'm gonna go drop down on the business, products and services. And this is going to then be, I'm just gonna add another one. And I'm gonna say, this is gonna be guitar lessons two advanced guitar lessons. And we're not gonna purchase, we're not gonna track the inventory because it's a service item, but this one costs 115, go into the account of service. Tax exempt, movie B to the end. All right, so we'll save that. And then, so now we're gonna bill out for that second person that does guitar lessons, which happens to be Bob Steele. He's an excellent instructor. I've heard from everyone that he does a really good job. So let's go to the projects then, all projects. And then we're gonna say, drop down and a new in progress. And we're gonna, let's just add the customer as we go, customer number three. We're just gonna add it as we go. And then I'm gonna say guitar lessons, guitar lessons, customer three is the job. Okay. And then actually this is the company name customer three. I'm adding the customer as we go, save the contact. All right, then I'll go to the project. Guitar lessons, customer three. And okay, there we have it. So let's create it. It has been created. We're gonna add a task, add the task, drop down. This is gonna be guitar lessons number two, the higher advanced level guitar lessons with our advanced instructor. He doesn't charge enough. I don't feel like, given the skill level that he clearly demonstrates. But whatever, we're gonna go to the add drop down and then we're gonna say that we want a time entry and task is gonna be the guitar lessons two. That's the only one we chose. Guitar lesson one isn't there because even though it's in the items, we didn't add it as a task. And then I'm just gonna say this is guitar lessons advanced. We're imagining we got this stuff from the time sheet from Bob Steele, the instructor. And then we're gonna put in the time that was worked here according to the time sheet, four hours again. We're just keeping it standard four and we'll bring this back to Feb 27, Feb 27. And so we'll save that and then we'll do it one more project. Let's add one more project, all projects. One more project that Bob Steele, the accounting, the guitar instructor worked on. So we're gonna say in progress. This is gonna be customer number four, adding it just on the fly as we go. We're flying along and adding at the same time. This is gonna be guitar lessons customer four and then good. And then once again, we will add the task, drop down task. And we're gonna say this is guitar lessons, but number two, guitar lessons two, 115 is the rate, right? All right, so we're gonna say add the task and then we'll enter the time sheet. Oh, what did I do? I think I added it. Let's enter the time sheet. Time entry, task is guitar lesson two. This is gonna be guitar lessons. And this is gonna be duration of four hours and the date, bring it on back to Feb 27. So, and we have the second, all right, so we'll say save it. So now we've entered our time. So we're, imagine that's the billing process that we would do every week, two weeks, bi-weekly, semi-monthly, monthly, depending on what our billing cycle is. Obviously we wouldn't have to add the tasks any time, every time because they would already be in place. So now in future presentations, we'll go through and we will invoice based on this information. So remember, it's pulling in kind of two things in here. One, it's pulling in the expense, but we didn't actually process payroll. So if I look at the profitability report, even though it's showing this 240, we didn't actually process the payroll during this system. We just kind of estimated how much of the payroll is the cost side of things for the project. And therefore this isn't actually impacting the financial statements. On the revenue side of things, we're gonna use the amount that we populated for the item that we pulled into the task to help us to invoice the client. Nothing's there until we invoice the client. That's when the revenue will populate, not only here, but also on the actual income statements, which we'll see in a future presentation.