 classifications for your fixed assets, because if I go back to the first tab, let's just check this out and go to their accounting down below so I can look at my register, the chart of accounts. And if I go over to the other view, by the way, the business view, just to check out where it's located, it's under the bookkeeping. And then the chart of accounts is right here. Let's check out the chart of accounts just so it is there. And then if I close this out, I can go down and say, okay, what did QuickBooks give me with regards to fixed assets? They gave me a lot. They got, we had to add this one ourselves, building, furniture and equipment. We changed the name, I think, and then land, and then they gave me all this stuff down here under a subcategory of long-term office equipment. Now, you might not want to format it this way. This is where I would kind of have an exception to the general rule. The general rule I would have would be that if QuickBooks has an account that looks relevant, I'm gonna use QuickBooks account. If I don't like the name on QuickBooks account, I'm gonna change the name instead of adding another account so that I have two accounts that will be similar. I don't want two accounts similar because I wanna make sure that I record to one account consistently. And then if they don't have an account at all, I'll add a new account. That's usually a good rule. But I think for the fixed assets that you might wanna deviate from that a bit and think, okay, how am I gonna track the tracking of my accumulated depreciation, the depreciation of the assets? And you might do that externally with tax software that might have a report that could look something like this. So I'll take a look at this in a second. Now, first, your thought might be I don't wanna do that at all. I just wanna record my books on a cash-based system and not have to deal with this whole depreciation thing. But most businesses can't do that because if I go back to the balance sheet, even on just a tax-based system, if you have assets that are significant, the tax code's gonna force you to record them as an asset and then depreciate them in some way, shape, or form, even if that's expensing them like as a 179 deduction in the year that you purchase them. So you're gonna have to deal with it. So instead of when I put this amount on the books that I purchased equipment, I can't just expense it even if I paid cash for it because at the very least, the tax code's gonna force me to put it on the books as an asset. It also makes sense to do that because if you're trying to compare like January, the month of January to February on an income statement, then if you bought $100,000 piece of equipment in January that's gonna last you 30 years, then it doesn't make sense from an accrual standpoint to just expense the whole thing in one period because it makes that period look like you did really bad performance-wise when compared to another period. So that's why we have the accrual thing in the first place but even if you wanna be on a cash-based system, the tax code is gonna force you to do it. The tax-based system works well oftentimes but this is such a huge deviation from when you spent the money to when you're gonna get the benefit that that's why you kinda have to forced into an accrual thing at this point in time. Okay, so then we gotta put the books here. Now, if the tax code is gonna force us to have a depreciation schedule, then we might as well use the cash, the tax software as our sub ledger to track the depreciation. And normally the tax software can calculate both a book basis as well as a cash basis for depreciation. So that's generally what a lot of businesses will do, especially small businesses, you're gonna rely on your accountant to depreciate. So you're gonna record the increases in the furniture and equipment and then you'll do periodic adjustments possibly yearly or monthly of the accumulated depreciation based on the numbers generated from the tax software which is acting as your sub ledger in a similar way as the sub ledger for accounts receivable breaks out who owes us money by customer. So that might look something like this and we'll dive more into this in a future presentation when we do adjusting entries. But the idea would be when we purchase the property, plants and equipment, we're gonna have to list out the things that we purchased as specifically as possible so that we can provide them to our accountant or a tax preparer who's gonna put it into the tax software so that they can then record the depreciation on it and then they're gonna tell us what the depreciation is periodically so that we can do an adjusting entry and put it into our system. That's gonna be the general idea. That means that I want the categories of my fixed assets to tie out to what's gonna be on the sub ledger, what's in the software. So this software has furniture and fixture. So I might wanna change mine to say furniture and fixture. It's got machinery and equipment. So I might want mine to say machinery and equipment. I don't wanna have something different. Otherwise it's gonna be difficult for me to coincide to what the tax software's gonna do. So that's what I would recommend. You go into your accounts over here when you buy furniture and equipment and you ask your accountant what are the categories that you would like me to classify my equipment in and adjust your accounts to basically match those categories. Okay, so I've gone on my rant there.