 0. Accounting Software 2023. Create reports after second month of data input. Get ready to become an accountant hero with 0.2023. 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 we're 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, purchased, and used ourselves. Focusrite Scarlett Solo 3rd Gen USB interface with software suite. I've been using a Focusrite for years for my audio needs before which time I had a USB microphone which plugged directly into the computer, but I think you'll find as I have found, if you want to increase the quality of your microphone, you will need an interface and the Focusrite is the go-to interface as far as I'm concerned. I've been using this for years now. It works well. It's easy to use. It seems quite durably built because I only do the screen recordings. I only need the one Solo interface. However, if you have multiple microphones you need to plug in or if you have other instruments you need to plug in, you can look at a similar model that has more input ports. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com where we have many different courses. You can purchase one at a time or have a subscription model giving you access to all the courses. The 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 homepage. Going into the company file we set up in a prior presentation, Get Great Guitars. Duplicating some tabs to put reports in like we do every time. Right-click it on the tab to duplicate it. Right-click it on the tab that we duplicated so we can duplicate it. Back to the middle duplicated tab. Accounting drop-down, opening up the balance sheet. Slightly modified balance sheet. If you don't have the modified balance sheet, open the standard one. Tabbing to the right, accounting drop-down. This time I'm going to open up the standard income statement instead of the comparative income statement so that we can construct and see how the comparative income statement is built. Let's go back to the tab to the left. The dates look good. I'm going to make a slight adjustment before we run our reports by going into the checking account. I have some date problems. I'm going to go down and make a couple adjustments just to correct the date issues down below. I'm going to scroll on down in the checking GL. We have these two that I recorded in June. I need to bring them back to February 28th. I'm going to right-click and see if I can open this in a new link. It opens it over here. Then I'm going to see if I can edit this. It won't let me edit the date, unfortunately. If I go into this and just say edit, it's not letting me change the date. Instead, I'm going to hit the drop-down and say remove and redo. We're going to say spectrum bill. We need to pay it. I'm going to remove it. Now we're back to the bill. I'm going to redo it and say it was paid on FEB 28. FEB 28 paid from the checking account. I'm not going to put the check number. I'll keep it without a check number here. We'll just keep it at that. Let's go ahead and add it to see if we can get the date properly situated. There we have it. I'm going to close this one back out. I'm going to go back to my balance sheet or middle tab and I refresh this. Let's just see if I can update it and then scroll back down. We should have an adjustment to this one. Let's do the same thing for this one. I'm going to right-click on it, open in a new tab and do the same thing. Drop down, remove and redo for Verizon. I'm going to say that I want. Here it takes me to the bill. I'm just going to correctly put the date now to 228 and is the date paid from the checking account. That shouldn't make any adjustments when we run the report for the entire year. Obviously, that pulls it back into February. Let's close this out back to the middle tab. If I update this one then up to the date and scroll it down. Now everything is posted before February as should be the case. Back to the balance sheet. Let's go back to the balance sheet and then there we have it. We have two months of data input at this point in time. Now we want to think how can we organize our data so we can provide it to our supervisor or we're thinking in this case that we're a bookkeeper providing it to a client and we're going to give them month end or quarterly end and yearly end types of reports and try to group those reports in such a way that we can give them to them, our clients, as easily as possible. The added feature that we have now are comparative reports. Note that as time passes you have almost an infinite number of comparative reports that you can build into the reports that you're going to be giving because just now we have two months. I can compare the two months. I could take the difference between the two months. On the income statement I can add up the two months and if I had more than two months, if I had two quarters, I could run reports by quarter, compare the recorders, subtract the quarters, have multiple quarters, three quarters versus two quarters, compare the current year to date to the prior year to date. You really want to think about what structure of the reports that you want to be providing to a client so that they look professional, so that you have reports that impress people but don't overwhelm them. On the balance sheet note that you can customize these reports. We could go to the Layout tab down below if you wanted to customize them and Xero has a lot of good stuff here. We've found unsaved changes and we're going to say I restored the changes. Hopefully they're good. We've made some adjustments to the categories, the grouping down here before in terms of how we're going to be breaking out our fixed assets. The first way we might present this to someone is to say I'm going to just collapse everything and give a summary balance sheet. I'm just going to say let's take the current assets and just say I'm just going to collapse them. I'm going to collapse the fixed assets and the long-term assets, the liabilities. I'll keep the liabilities and maybe just the current liabilities versus the long-term liabilities. I don't have any long-term liabilities right now so it should be a simple report and then collapse the equity. This might be a format that you might call a summary balance sheet. Let's update that layout and just check it out. Here we have it and then I might change the name of this to a summary balance sheet and you might save the customization of a balance sheet here. You might save this as a summary balance sheet so that you have it in your custom reports so that you can go into it at the end of a period. I already have one that's named that because we did that last time but I'll just construct it again so there we have it. When we give this to someone we can print it and we'll save it as an Excel file and we'll also try to get it on one report. I'm going to say let's export it right now as a PDF and then I'm going to put it into this folder here. I've got my folder set up and I'm just going to drag it on in to my folder and so there we have it. I'll say we want to see it large. There is that one. We can also open up the Excel. Let's build the Excel as we go this time. Excel report opening it up. I'm going to drag it into my folder too so I'm just going to say let's drag that in here and then I'm going to rename the Excel one because I want to use this report to put all my reports in and then make one PDF file with all my reports in it. We did this after month one two similar kind of process. We're going to say this is going to be month two reports. I'm going to open this up. All other reports I'm just going to basically put into the tabs here so I can then print them out as a PDF on one PDF file. Now once they're in here remember that you could format it. You could go to the view tab. I like to be able to see the grid lines. So I'm going to go and say give me the grid lines por favor. I like to go to this tab over here and then back on over and maybe center this thing a little bit so I can possibly center this by right clicking and inserting a tab on this side and then maybe just making this large enough to let basically and then maybe make these a little bit bigger until it is kind of in the middle here. So there we have it. Something like that looks pretty good so I'll save that and then I'm going to go back on over and center it. Next let's go here and let's open up another balance sheet. So what I'm going to do is I'm going to right click on this and duplicate it. Start from our baseline balance sheet and then we could do comparative balance sheets. So I could say let's go up top accounting and open my balance sheet up again and then I might want something that shows me where I stand at the end of January versus February and possibly subtract out those two. So I might want January and February in different columns here. So I can say if I wanted that I can say let's edit the layout and let's say that we've got, well let's actually change, let's cancel this first and let's make this first one the month of February. So I'm going to say this one custom date goes from, let's just make it at the end of February. Boom, February 28th. So that's as of the end of February and I'm going to try to say as of the end of January and then possibly a difference between the two of them. So let's edit the layout to do that and so then it still gave me the year end over here. So I'm going to change this one. I'll change it this way then. So at the end of the fiscal year, I'm going to say end of the month and I want to have the month be February. So we'll say February 28th. All right, end of February. And then I'm going to add another column which I want to have as a date and then this is going to be end of the month and this is going to be January. I'm going to put in the current month first. So there's January and then I'm going to add another column subtracting the two out. So we're going to say this is going to be a formula and we'll say formula and this is going to be February minus January. So now we have the change and I might call that then, I might call that the change or difference and then I might want another one which is the percentage change which would be the difference divided by the beginning number. This would be like a horizontal analysis kind of report. So then I can say another one and I'm going to take, I could have taken, but I'm going to just make a formula again to do it and then I'm going to say, I want to take the difference column divided by the January, the first date, January and this is the percent change, let's say. And so there is our report. We might call this a balance sheet, horizontal analysis which is spelled horribly, horizontal analysis. I'll copy that and then I'll update it and see, check it out, see what it does and so there we have it. So I did that fairly quickly and then I want to kind of see these as a percent. So if I go back on and edit this one again, I see I have here show as a percent. So I want to show as a percent. Let's do that and then update again and so there we have it. So now it's taking the change, the difference between the two and showing as a percent. Now I did that fairly quickly because I want to run through these fairly quickly but that's the kind of report that you might add to it. Let's go ahead and save it. I'm going to call it balance sheet, horizontal analysis, save it and then I will export it as a PDF, exporting as a PDF, pulling it over into my folder and say boom into the folder that way and then I will also export it as an Excel sheet and this time I'm going to open up the Excel sheet so that I can copy its context, content and put it into the other tab. So I want to put it into this one. So here it is. I'm going to select, I'm going to enable editing, select the whole thing with the triangle, control C or copy and then go into my other Excel sheet. Here add another item, double click on it, balance sheet, horizontal analysis or something. Put my cursor in the triangle, right click and paste and there we have it. Now I'm going to check to see if it fits on a page by going to the page layout view back to the left so it fits perfectly at one page wide and so I'm not going to do any other adjustments but of course you have a lot of adjustment capacity once it's in Excel. Alright, let's go back on over again and say let's open up another balance sheet. I'm going to right click and duplicate and you might want like a vertical analysis balance sheet. So let's go back in here again. I'm going to go up top and start with my normal balance sheet and this time I want to make another column that is going to compare everything to the fixed asset, to the total assets. So I can make that, I can say edit layout and say that we're going to say add hold on a sec, I want to change the date. I should make all this as a February. Let's go ahead and change the date here and let's make it the month of February 28. Okay, and then I'm going to go to edit layout and I'm going to say add a column and I want to make it a percent this time. There it is, clicking on that column I'm going to make it show percent of total assets percent of total assets, column heading select percent percent of assets something like that and then we're going to say save and update layout, okay percent columns must refer to a column on their left. Okay, that's what I did, that's what I did. Oh, I had to pick this to go to here. Okay, so then I'm going to update it again see if it does it this time, I think it should. I think I got it correct. So now everything, all these percentages are now comparing to the total assets hopefully, I won't even calculate it because I want to go through this fairly quickly so it won't go forever, but that's the idea and the liabilities and equity are comparing to total liabilities and equity total liabilities and equity being the same number as total assets due to the balancing of the double entry accounting system assets equal liabilities plus equity. Alright, let's go ahead and adjust this, let's say this balance sheet this is vertical analysis I'll copy that and we'll say that we want to save it balance sheet vertical analysis save it and then let's export it as a PDF exporting as a PDF also exporting as an Excel file I'm simply going to open the Excel file this time copy its contents put it into our other Excel sheet enable editing, triangle up top right click copy I'm going to put this into our other Excel sheet so I'm going to say plus double click on the sheet balance sheet, invert analysis or something like that put my cursor on the triangle, right click and paste it so let's see if it fits on one page page layout, back to the left tab looks like it does I might want to kind of see if I can put it more in the middle put in my cursor on the A right clicking insert and then I might make the description a little bit larger here until I have like one buffer between these two which I would like to make the same size but I'll keep it there alright let's do another so let's go to the income statement now on the income statement if we had a lot of sub accounts we might make a summary income statement but we don't let's make the new income statement which we didn't do in the month one which is now the comparative income statement now on the income statement you can actually make two kind of comparisons I could have the date January, February and then add them together for the total year to date or I can subtract the two January minus February those are two different kind of comparative reports so let's do let's hit the dropdown here and say that I want to make this for a custom range for the end of February 28 hold on a sec let me do that again custom range let's go from January to January 1st to let's say dropdown January 31st ok and then I'm going to go into my edit layout and we've got January here I'm going to add a column now adding a column and I'm going to say that we want to make this just a date column and let's say that this is going to be the month of February so now you've got January then February ok that looks good and then I'm going to add a column and I want to sum them up this time I'm going to add them this time to get the year to date so we're going to say formula this will be January plus February so nice and flexible this system is that zero has so this is year to date now notice if you had multiple months more than two months you can choose three months or you can have it broken out by quarter quarter quarter quarter to get the year to date number so you can see how these comparative reports can expand you can have a whole lot of them so I'm going to say income statement by month let's say by month so there we have income statement by month and we'll say update it and so now we have January February adding them to get the year to date the year to date should be the same as the original income statement we looked at for the year to date of January and February right so then let's go ahead and let's customize this save customization boom and then we'll export it drop down export to PDF drag it over into our folder and then also export as an Excel file open it up so that we can copy its contents and then put it in so I'm going to enable editing put my cursor on the triangle right click and copy back to the Excel adding a new tab and this we're going to call this income statement month by month or something and then put our cursor in the triangle right click and paste it and so then I'm going to go to the tab to the right or the view to the right back to the left and so then I can format this a little bit make like another column hold on a sec column here right click and insert insert and then maybe make this a little bit larger so it's basically centered something like that let's go back on over here again and so then we might make a difference income statement so another income statement that subtracts February minus January so let's right click duplicate again and then let's say that we want to have a difference a horizontal analysis income statement let's go back up top and start with a normal income statement so income statement and then we'll change it and so I'll change the range here this time I'm going to start with February so I'm going to customize it starting with February 1st to February February 28 update then edit the layout and I'm going to compare February to January adding a column a date range column this is going to be the month of January now and then I'm going to take another column and I might be able to say variance but I'm just going to do it with a formula and I'm just going to say this will be February minus January and that's good and then I can name it this is the difference difference and then I could take another column for the horizontal percentage change another column this is going to be the percent let's just do a formula again because I think I could calculate this which will just simply be the difference divided by the first month which was January and show it as a percent and then this will be show it as a percent and this is the percent change and let's call this a profit cost month comparison comparison boom update the layout so we might also call this a horizontal analysis let's do that because I think I did that income statement horizontal analysis on the income statement so that's a common kind of income statement let's go ahead and save customization horizontal analysis alright I have it spelled horribly horribly wrong or it doesn't there's no spell check on this thing oh my goodness alright I'm not even going to worry about it we're running long on time we're pulling too much time man so let's go ahead and export this as a pdf pull that into our folder and then export as an excel file open it up and then copy the content closing or enable editing triangle control c back to our first report plus income statement horizontal analysis putting our cursor in the triangle right click and pasting it we're going to make it a little larger layout view back to the other view and then I'll try to center it putting my cursor on column A right click insert making this a little bit larger so we can center it looks good enough saving it and let's do one more which is going to be a vertical analysis income statement so I'm going to right click again duplicate and one more time this is going long I know we're going to go to the account in drop down we're going to go to the income statement and let's just make it as of the end of feb this time year to date drop down we could say this is going to be custom date range jan first that looks good through feb 28 update custom layout and we're going to say column it's going to be a percent column selecting the percent column column to the left and we want it to be a percent of income gross income there we have it that looks good so let's so we'll say this is a income statement vertical does this one have spell check in it yeah vertical analysis spell check good update okay so here we have it vertical analysis boom so let's go ahead and save customize save it and then export as a pdf export and then export as excel open up the excel and so that we can copy the context enable the editing triangle selecting the entire sheet right click copy the whole thing back to our excel sheet new tab income statement this is vert analysis or something putting my cursor on the triangle right click and pasting going to go to the layout tab back to the tab to the left hold control scroll in a bit center it by adding another column putting my cursor on a right click insert and then I'll make this a little bit longer so it looks something like that let's save it so there's all of our reports so now this is what I have in here now so I could give someone these reports which are getting quite long and I could go on for quite some time making other comparative reports now but I'll keep it here now these are too many attachments that you usually want to give to someone in an email so you might then put it in a cloud drive for them that's one way you can do it or you might zip the file so let's do that right click new tab folder let's call this a month to to reports reports and I'll just put these in there and now note that even when they're zipped in that cloud drive you might want to go in here and number I won't do it now because we're running long on time but notice they're not in order that we want to put them in order you want the easiest report to read this one as number one generally right you want this one to say that's the first one you should look at so you don't get overwhelmed and then maybe have the rest of your balance sheet reports and then the income statement reports but if you don't do that it's going to save it just by alphabetical order and it's kind of a mess so numbering them would be nice back to the tab to the left once you have them in a folder you can right click and compress the folder so I'm going to go ahead and say where's that compressed thing they changed it on me compress so mine looks a little different because I have this other thing but it might just have a zipper on it the point is that you can attach this to an email now or you can try to get everything on one report that's why we did the excel we're not going to give someone this excel sheet however if we have a pdf printer we can then go to the file tab we can print this thing and we can save it as a pdf using a pdf printer so it will print to a pdf and that's a free pdf thing I believe so you can check it out I'm not affiliated with them but I've been using it for some time print the entire workbook so here we have all six pages on one sheet formatted a little bit differently but you can see you can get it pretty much centered looking pretty nice and get it all on one sheet and you have the capacity to do further formatting in excel if you use this method although you would have to format each report separately a little bit added formatting if you wanted to do that in excel alright let's print it and it's going to print it not to a printer but to a pdf pdf located file put that over here I'm going to just copy where we want it to go yo that's where we want it to go yo so then we're going to say ok and then if I open that up now you can attach this one file so that little added step again sometimes can provide if you can format them nicely here you can get more confidence or a little bit different than what other people often do so you can give them one report and you can get further than that you can start to combine this with text and put together your own little reports and what not that has a whole summary report you can have a title page if you want to include it in excel and make it look professional that way and stand out a bit if I go back on over one more thing over here just note that we saved all these reports if I go into my reports in the custom reports and that's a great tool because then you can start to save your reports by whether they're internal reports whether they're external reports and then you might even number the reports in here by title so that every month you can then generate these reports just change the dates and then be able to provide them to someone with very little effort have some consistency with the reports and make them look nice and professional