Extended Intro
The sections below provide overview descriptions of the recommended Passes to perform this Configuration Process.
These are not "instructions". Those are contained on the "Config Process" menu above.
This is the type of "information" that is often times shared in an introductory conversation with someone who wants to "understand more" about what they might be doing before they do it.
Truthfully, for most, it's best to skip this step and just have them follow instructions. The learning process that way is often times more effective, than trying to understand it before they do it.
10:27 - A video summary of the content on this page and an intro to the idea of thinking about this by worksheet as well as by pass.
If you have not watched the videos at the ZAP Accounting Software Website > Resources >Videos > Bookkeeping Template page, please do so now. Watching those videos will familiarize you to the Worksheets that will be mentioned below.
Pass 1 - Clear Demo Data
Clearing Demo Data is a process you can learn to do extremely quickly.
You will touch approximately 7 worksheets.
It's a great way to become familiar with the parts of the File Template you will interact with the most and it's a great way to learn valuable keystrokes which will help you with the user process.
Worksheets with DemoData Related Material that needs to be cleared...
1) Chart of Accounts
2) ZIDs
3) Statements
4) RawTxns (x2)
5) Journals (x3)
6) General Journal
7) B/S Historical
Make "_blank" Copy of the Template AFTER demo Data is Cleared (between Pass 1 and Pass 2)
Making a "_blank" copy of the template after the Demo Data is cleared is an optional step you should take advantage of. This completes the final step in the Flow Chart process from the Download Guide Diagram presented prior.
The image to the right can be found at the Download Guide Version A webpage.
https://bk-download-guide.zap-accounting-software.com/version-a
This provides you with a file template you can quickly pickup with if you will need multiple instances of the software. It also provides you with a template you can pickup with if you'd like to do simulation with the Transaction Generator.
Passes 2, 3 and 4 (if required)
The Sections Below provide brief information on each of the worksheets in the order in which they are typically presented in the file and in the configuration process. This does not clarify exactly what happens in each pass. Most of the information is related to the second pass with the work in subsequent passes typically noted. Don't try to remember any of this information nor what happens with each pass. We give you written directions and videos for everything. This is to try to help you create a cognitive picture for yourself for orientation. If that's not how you learn, move on to "Config Process" Menu and just "do the work" for your learning experience.
1.1) Chart of Accounts
Pass 2 - Rename Asset, Liability, and Equity Accounts. Add, remove or hide others. At the end of Pass 2 you will return to complete initial configuration for these records. You may also do this again with Pass 4.
Pass 2 - Rename Asset, Liability, and Equity Accounts. Add, remove or hide others. At the end of Pass 2 you will return to complete initial configuration for these records. You may also do this again with Pass 4.
The File Template is setup by default with 2 Asset Accounts with dedicated Journals and 2 Liability accounts with dedicated Journals. It also has Asset and Liability accounts without dedicated Journals (inventory and Due to accounts for example) An unlimited number of Checking, Savings, Credit Card and Loan accounts can be tracked with Dedicated Journals and an unlimited number of other Asset, Liability and Equity Accounts that don't need their own Journals can be tracked in Dedicated Journals and the General Journal. If you need to have more than 2 Asset or 2 Liability Accounts you can add them now or wait until Pass 4 where the full work for adding them is detailed.
Each Asset/Liability Account you want to add with a Dedicated Journal (beyond the four included by default) takes about 3-5 minutes to configure. That process requires a small amount of custom formula manipulation. The instructions for adding the later is found in Pass 4.
1.2) Chart of Accounts
Pass 2 - Keep, Modify or Replace Income and Expense Accounts .
Pass 2 - Keep, Modify or Replace Income and Expense Accounts .
The File Template is setup by default with Income and Expense Accounts that align with the Schedule C Tax Form categories/line items. The numbering system for the Income and Expense Account names is the 'trick' that can be used in any bookkeeping software to help you align your books easily with your required tax form. This is not unique to the ZAP Methodology. We will show you how to modify the Chart we provide a small amount for a bit more resolution without losing the alignment with your tax form. We will show you how to quickly switch it out the entire Income and Expense Account list items completely for your own needs.
Schedule C is the form used by Sole Proprietors, Partnerships, LLCs and LLPs for reporting business income and expenses for Tax Reporting Purposes. This form is basically an Income Statement, and thus your first goal is to create an Income Statement with the categories they require to keep your Bookkeeping for Tax Accounting and Financial Accounting simple. Alternate Chart of Account Suggestions are provided for S-corps and Real Estate Investors which align with the Form 1120s and Schedule E. Also, a unique concept for a Chart of Accounts is provided for Personal Bookkeeping too. reference.
1.3) ZIDs Worksheet
Pass 2 - Add Records (if applicable)
Pass 2 - Add Records (if applicable)
ZIDs is a "generic word" we created for describing "Property", "Project", "Client", "Customer", etc. Because they will not apply to everyone, ZIDs configuration is covered on the Advanced Config Page. We greatly discourage doing detailed Managerial Accounting in this Bookkeeping Template, but it can be done. The people who might use this most for their Tax/Financial Bookkeeping in line with our suggested methodologies are those who use a single or a few Checking/Savings/Credit Card accounts for managing multiple real estate properties. ZIDs were included first and foremost for that group.
1.4) Statements Worksheet
Pass 2 - Initialize the Statements Worksheet
Pass 2 - Initialize the Statements Worksheet
On the Statements Worksheet, you will select your newly named Checking/Savings/Credit Card accounts to identify each section and you will enter starting balances. Your historical data will be entered as part of the User Guide process, You are done with this worksheet with Pass 2.
1.5) Raw Transactions Worksheets
Pass 2 - Initialize RawTxns Worksheets with Account Name and Change Worksheet Name. In Pass 3 - you will return for more detailed configuration
Pass 2 - Initialize RawTxns Worksheets with Account Name and Change Worksheet Name. In Pass 3 - you will return for more detailed configuration
The Raw Transactions Worksheets are the location where you store the raw data you paste in from downloaded files from your banking institution.
On the RawTxns Worksheet, in the Hidden Header, you will select your newly named Checking/Savings/Credit Card accounts to identify each worksheet and you will rename each worksheet as desired. The rest of the work related to formatting columns for imported data and mapping will be done in Pass 3.
When you return to configure the data table for your bank data you will have to add or remove columns to accommodate your data. That part is easy.
Then, to the right of that we use a "mapping" equations to select only the columns you need from that data to populate our journal. You will learn how to us the 'arrayfomula' equation and the 'if' statement to do this. Many folks find it amazingly easy with just a little proper help.
You will also be introduced to the idea of Conditionally Formatted cells and the process of trying to teach you to use Paste-Special-Values only will be introduced. his time.
1.6) Journal Worksheets
Pass 2 - Initialize Asset and Liability Journals (Checking and Credit Card Journals) with Account Name and change Worksheet Name.
Pass 2 - Initialize Asset and Liability Journals (Checking and Credit Card Journals) with Account Name and change Worksheet Name.
For the existing Journals, in the Hidden Header you will select your newly named account for the worksheet and you will rename each worksheet if desired. Starting Balances will be entered later as will data if you have historical data to enter.
1.7) Income Statement Report
Pass 2 - Modify Due to and Equity drop downs on the Cash Delta Sub Report
Pass 2 - Modify Due to and Equity drop downs on the Cash Delta Sub Report
The Primary Income Statement and Income Statement per month is auto configuring. There is a small sub report that needs to be updated on the Income Statement. There are secondary income Statement Reports that may need slight modifications if you added more Income and Expenses accounts..
1.8) Balance Sheet Worksheet
Pass 2 - Modify Due to and Equity drop downs in the "Company Net Worth (incremental)" section. Pass 3 - You will return for more detailed configuration
Pass 2 - Modify Due to and Equity drop downs in the "Company Net Worth (incremental)" section. Pass 3 - You will return for more detailed configuration
The Balance Sheet may only require a change in drop downs, but it may also require major configuration. It depends on the nature of the changes you make to the Chart of Accounts. There is also a Historical Reporting Worksheet that you should empty of data. Most people may not use that moving forward but it is still part of the default file for now.
1.9) Config Worksheet
Pass 2 - Personalize the file in the "config" worksheet
Pass 2 - Personalize the file in the "config" worksheet
The File Template has a Configuration Worksheet which enables you to change the owner information that is printed on the reports. John Doe Acupuncture, 1010 Wellness Lane is converted to your name and address info wherever that shows up by default. In other software, this type of configuration work would be thought of as being in the "settings".
Nothing more to add at this time...
2) Written Instructions for the Process by Worksheet (not by Pass)
Please see the "more" menu for a webpage that has a full set of Documents for performing all the work desribed onthis website by worksheet as opposed to by pass.