Speaker 1: In this presentation, we will take a look at how to navigate around the Xero accounting software. Get ready because here we go with Xero. Here we are in our not-for-profit organization dashboard within Xero. The dashboard is going to be the place that will typically land when you first open up your Xero accounting software and log back into your Xero accounting software. Note that if you select this drop-down, if we select this drop-down here, we're going to have the toggling between the different types of organizations that we have open. So we always have the demo file, which you could use to practice and navigate around with, and then any file that we have set up. We currently have open the not-for-profit organization. Therefore, those files are not down here in the window, but rather up top. So this is going to be one area that you could go for adjustments of things such as the settings. That would be one of the major adjustments here. As well as if you're thinking about adding a payroll, you can look into this drop-down, one of the major components within this drop-down. Most of the actual things that you will be doing will be in the drop-downs up top. Those being the dashboard, the first drop-down, or the first location. Dashboard is always getting back to just this location, which does have some information on the bottom of it that could help you to navigate. Most of the information you're going to be going into is going to be from these drop-downs. The business drop-down, the accounting drop-down, the projects, the contacts. We'll go into that in a little bit more detail shortly. However, when you just enter data input, when you're putting in data into the system, the other place you will typically be going is going to be to the plus button over here. This plus button will give you your normal type of data input forms, such as an invoice, bill. Then we have the contacts, quotes, the purchase order, spend money to receive money, and transfer money. These are your most common type data input forms. Just about all of these forms will be generating actual journal entries. In other words, when you create these forms, these are the things that are going to have an effect on the accounts that are going to be used to create and adjust and make the financial statements that we took a look at in a previous presentation. These are basically like the journal entry forms. When you think about these forms, we will go back and forth from them and say, hey, there's the form. What are the accounts that are affected? What's going to be the effect on the financial statements? We'll take a look at that in a step-by-step process. Now, if we take a look at some of these other drop-downs, note we have the business drop-down, where we can also go invoices. We have some of the major kind of forms here. The accounting drop-down is going to be one of the major places we go, because that's where we go to the reports. Oftentimes, we will enter data input using the little plus button in the forms. Then we'll go into the reports, the main reports, the balance sheet, and the income statement. Then our alterations to those reports for the not-for-profit organization, so that we can see the effect on them. Also note in here, you have your chart of accounts. That's going to be a default list of accounts that we'll start off with, that Xero will start off with. If we go into our chart of accounts, in other words, you will already have accounts populated. You didn't make up the chart of accounts, because Xero puts in a default chart of accounts here. We basically have the codes, which are the numbers. We've got the account names that are going to be set up, and then the account type. Meaning, you can think about this as basically assets on top of liabilities, or the balance sheet on top of the income statement. The balance sheet including assets, liabilities, and equity. The income statement then being the revenue accounts and the expense accounts. That's one way to think of it. Then you can go into further detail. For example, the assets then have bank accounts, our asset accounts, current asset accounts, inventories and asset account, and so on. They also break this information out by a category here. I want to just see the asset categories, just those assets like so, and then the liabilities, and so on, and so forth. That's one of the major areas we have here. Projects, we're not going to be dealing with the projects in the not-for-profit organization. The contacts are going to be the people like your customers and vendors. People that pay you money, in our case donors, and then people that we pay, which we could still call vendors, I suppose, for a not-for-profit organization. We've got the customers and the vendors, and we can go into the detail about those items there. Now, note that when you visualize the accounting process, whether it be a not-for-profit organization or a for-profit organization, it can be useful to visualize in your mind, breaking out by cycle. For that, I'm going to jump over to, this is actually QuickBooks Desktop. We're not going to use QuickBooks Desktop, but their homepage has a little flowchart, which is useful to visualize the transactions that are going to be happening. So, if we think about, for example, the whole accounting process and break it out into, say, the vendor cycle, which could be called the accounts payable cycle, or the purchases cycle, the expenses cycle, for example, the customer cycle, which is going to be, you can call it the the donor cycle, or the accounts receivable cycle, the income cycle, the donation cycle, or, and then the employee cycle, obviously the payroll cycle. It's useful to break things down there. And then, once we think about, for example, the customer cycle, what's going to be the normal process in our organization? We're a not-for-profit organization, so donations are probably our major source. So, in QuickBooks, we can think about that as a create sales receipt, or we're going to say it's a receive money form in zero. So, this would be the form that we would then use that would create that normal transaction. Then, we want to think about the effect on the financial statements. Once we have that, the create sales receipt will basically be increasing the revenue and increasing the the cash account. So, the equivalent form here is one of the major forms that we'll use in zero. We'd like to not call it a receive money, but rather like a donation type of form, and we also want to be able to track who gave us money so that we can provide that information to the donors. That's going to be an important key. Then, we also might get money in a for-profit with an invoice, meaning we do work, and then they're going to pay us in the future. We bill them for the work that's done. Now, we have a similar thing in a not-for-profit, except we don't really do work. We haven't done anything, except there's work involved in us getting the pledge. We would call that a pledge, but we didn't actually give them anything in that case. They just pledged to give us money. They promised to give us money in the future. So, if someone just promises to give us money, it would be similar to an invoice type of form in a for-profit. What would the journal entry be? We could think about that invoice. Well, the journal entry would be, I need to increase the fact that they're going to say they're going to give us money, accounts receivable, and then the other side is going to be, we would call some type of revenue account, typically. And so, this form is going to be, we're going to alter this invoice form basically to a pledge form, which will be someone promising, in essence, to pay us. And then, at some future point, they will pay us, hopefully, which means we're going to have a receive the pledge form, receive the money form, which is a data input form, typically, which will be increasing the cash, decreasing the receivable. And so, that's going to be our basic flow on the customer side. So, you can see, these are the forms that we'll actually put in and we'll be able to use those to do the data input. So, if I go back over into Xero, then, note, if I select this drop-down, the forms we were looking at, we had an invoice. That's if someone owes us money or promises to pay us money. The spend money form, that's what we're going to be using, our primary form for basically donations. And these forms will be, then, helping us to create the financial statements. These will be creating the actual journal entry. So, if I was to spend money out of the checking account, let's say, and say, next, then, we're going to populate this data input form. Now, part of our goal here is to make the population of this data input form as easy as possible. So, you can do the data input, even if you don't know exactly why, you know, what's needed to set this form up easily, and then, what's the effect on the financial statements? But, we will consider those things. How do you set this form up to be easy to data input? What's the effect on the financial statements for inputting these types of forms? We're going to go back over to the dashboard, and then, if we look at the vendor side of things, the payable side of things, things like paying the phone bill and the electric bill, those type of things, well, then, you could just make a payment. We could just basically write a check. So, we could just write a check or have an expense form, write a check, or we could put things through accounts payable. In other words, we take the bill that's given to us, we put that into the system, and that increases the accounts payable. So, we have a bill form. So, a bill form to us is going to be something that we owe to somebody else. It's a bill that someone gave to us. Whereas, an invoice to us, in terms of accounting software terminology, means that we billed somebody else. So, notice they're the same or the opposite. Like, if I received an invoice from somebody else, even though it says invoice on it, it means bill to me. To me, it's my bill and on my system. So, just keep that in mind. This would increase the accounts payable, and then, the other side would go to an expense, and then, we could pay it with, basically, a check. That would be another data input form that we would be using in the system. The check, then, obviously, having the the journal entry of decreasing the cash account, and in this case, affecting the accounts payable. So, those are the forms we would be looking for, for the that side of things. Now, also note that we have the added problem, however, with the expenses, and to some degree with the revenue, of breaking this information out, not only by the expense in nature, normal expenses, but by category of program, and then, whether general, and the fundraising. So, that's going to be an added challenge. So, we're going to have to enter this data input form in such a way, the bills form and the check forms, using classes. So, we'll talk about how can we use classes to input that form, make the data input process as easy as possible, but then, zero to be able to break that out, magically, into these other formats, to be able to make these reports. So, again, our objective here, if I hit the plus button up top, we'll be using things like a bill form. There's the bill form, and then, a spend money form. So, spend money form. Let's say, we open up the spend money form. From the checking account, I'm going to say, and then, say, next, once again, we want to make it as easy as possible to enter the data input into a spend money type of form, so that the data input process is easy. And then, we also want to make it so that we can use just this form to help us to generate the financial statements, and alter those financial statements to what we need in a not-for-profit organization, to break out the expenses, for example, by nature and by class. So, that's that. If I go, then, we got the employee cycle. Now, this isn't a lot different than, it has the same kind of issues. It's difficult, you know, payroll is payroll, from a for-profit, but, you know, you got the same kind of process with the payroll items. You want to break that out in your mind. What, you know, what is the payroll? What's going to be the payroll processing? Obviously, we're going to process the payroll. We're going to withhold the money for the payroll, and then, we're going to have to pay the payroll taxes. We won't be focusing a lot on the payroll here. We do have a course on payroll. It's much the same in a for-profit and a not-for-profit. If you want to learn more about payroll, that's kind of a course in and of itself. We'll touch on it here, but we won't spend a lot of time on the details for payroll. But again, we have a course on that, and it's very similar to a for-profit organization. So, we're going to go back to the dashboard here. Now, within the dashboard, note that we do have some nice navigation on the right, including the invoices, or people that owe you money. So, you could track that information here, and the bills are people you need to pay. So, if we go into, for example, the invoices, or people that owe us money, then we have our navigation down below, where we have the draft, awaiting approval, and then a waiting payment. So, let's go into the awaiting payment item, and this is basically tracking, you know, the receivable item down here. So, people that owe us money. So, there's the pledge, which is, in essence, an invoice. So, you can see it over here is indicated by an INV, or invoice type of number. So, that's one area that we can track. It's nice to be able to go directly in from the dashboard. You'll have a similar type of activity down here for the bills. You need to pay, and that'll be tracking, like, the accounts payable in a similar fashion. But, just note that when we do the data input, our normal practice is going to be data input forms over here. Standard forms is going to be the invoice, the bill, that will have spend money, receive money. We'll be using those a lot, and then we'll be jumping over to the accounting, and we'll just be taking a look at standard balance sheet, and income statements, and then, when necessary, we will then break out and start to customize our reports so that we can see that custom information in a format necessary for the not-for-profit organization. That's going to be it for now. Let's get out of here.