 And of course you can see that transaction as well on the contacts if you wanted to check it out on the contact side of thing All right, so I'm not I'm not gonna go over there that we're just gonna go and say let's do the deposit now So if I go back into the to the Balance sheet we see that now we have this amount in the clearing account So now I'm gonna imagine that whatever payment process we're doing whether it be cash credit card Some other payment processor is gonna be grouping the deposits together and putting them into the checking account We imagine physically go into the bank if it were cash or physical cash going into our bank account if it was through a credit card for the total of the 3472 50 instead of the two Individual amounts that make up that item and there that's the reason for us doing this clearing account because now I can transfer it in in that one lump sum in a balance that should tie out to what's on the bank statement now again Because these were both two invoices you could have done that same thing By simply selecting both of those invoices right when we had them up and then depositing them as a group but you could imagine situations where you had invoices and Something else like sales receipts and whatnot that you need to group together Into your clearing account, so I still want to give the concept of the clearing account So it would might be redundant You might not need the clearing account if your process just had those invoices and you were able to Select multiple invoices batching them together in the proper format. So just be aware of That that might be a more simplified system in some cases. Okay, so 34 7252 let's make the transfer So now I'm just going to go to the plus button up top and I'm gonna not record the receive money or spend money forms But rather the transfer form since this is basically going between two types of kind of cash accounts So it's going to be coming from the cash clearing account and going into the checking account And we're going to say that this is going to be for Jan Jan 25 Jan 25 Yeah, and then this is going to be for the amount of 3407 2.5 and we're just and then again you you might put the two that Anderson and Eric and I didn't spell that right, but you might put like The invoice numbers for example if you wanted to kind of give more detail to tie this out And so you have the transfer and add or just transfer I'm going to transfer it and so there we have it if I go to the tab to the right Then I should be able to update and say okay now The checking account has been increased the clearing account is gone because it's back down to zero That's what clearing accounts do they go up and then they go back down It's not it's not a temporary account by the way, which are the income statement accounts which clear out automatically By the system at your end In the closing process, this is a clearing account that clears out periodically usually a much shorter time frame than monthly or yearly To zero when the job that they were set up to do is done. Okay, so if we go down here, we can see the Transfer so now it's in here as one lump sum instead of as two separate amounts Which is beneficial which is necessary if it's going to show up on the bank statement in that one lump sum So that you can easily tie it out the bank Reconciliation should be easy if your accounting system is set up right I shouldn't have to go into the bank reconciliation when I tie out what's on the bank statement on the bank side To what's in our books I shouldn't have to be adding stuff together in our books to tie out to what's on the bank statement If that's the case your accounting system is not optimized Right, we want the accounting system to be putting the stuff into the bank account ledger and the same grouping as We'll show up on the bank statements, and then if we have the bank feeds on it should be able to automate the whole thing The bank feed should be able to read that dollar amount and help us with the bank Reconciliations, which we'll talk about in future sections or course now note if I go back into this and I drill down Onto this transaction You could now add notes to it right so you could show the history of the transaction down here And you might want to add a note. So now you have the capacity to add a note to it You might want to put a reference of the of the account numbers that were added or something like that if you wanted more detail down there All right, so let's go let's go back and open up a trial balance and see where we stand on the trustee TB not tuberculosis trial balance, so we're going to go to the accounting drop-down and Reports Reports I would like to make a report trial balance If you type it in if you could spell correctly You just you don't need to need to spell the whole word just like the first three letters and you can get it done But that's often above my capacities But I got it this time we're gonna say this is 2023 and boom Update it. So this is where we stand. So if your numbers tie out great if they don't what did we change? Well, this time we just changed basically the checking account and the clearing account should be gone Because we have adjusted out of the clearing account So it's if you were in balance last time or tying out to our numbers last time Then you would think that this would be the account that would be off of this time And if it is maybe change your date range and including a larger date range and see if it changes because of a date issue And if it's a date issue drill down on the number get down to the source transaction and adjust the date