 account now we uploaded these last time just so we can see the process we're gonna see our deposits coming in and it's probably gonna have some kind of description that's gonna be able to tell us because it's an electronic payment that it came from the Shopify pay what it's not gonna tell us is is all the customers that that bought stuff right I don't have that detail I have that detail over here because I can look at each of these individual transactions and see what was purchased when I bring it over here under this journal entry method I'm not I'm not adding all that detail either on the journal entry or when we make the banking payments we're just trying to make our financial statements as detailed as we can we're not trying to get the detail on the customer level breaking up the customers because all of that kind of stuff is on the Shopify side and we probably don't need it other than adding them to our mailing list or something like that so if I was to look at this I could say there's the payment and I would probably want to open up my clearing account right here and just double-check to say okay does that match something that's in my clearing account I only have one number at this point so of course I can see that it does but if you look at the detail you can say okay that matches and we should see in our clearing account the clearing account going up and then going back down periodically being zero in the balance right so if I go over and I'm gonna say okay I'm gonna post this this is a deposit I see it in my clearing account and I'm just gonna put the other side to the Shopify Shopify payment clearing account which is that one so I'm just gonna that's gonna reduce this amount just one of the Shopify payment clearing yeah and that's gonna reduce that amount and I probably don't want to automate this this transaction I just want to probably double-check them all of my deposits from Shopify are gonna go to that clearing account in other words and you could make a rule like I could make a rule over here and say all of these Shopify payments according to the description should should be going to that clearing account and you could make a rule but but then I would say don't auto add it instead I'm just gonna double-check it because I would like to double-check that that number actually matches something that's in the Shopify account over here exactly now note that if we did not use the clearing account and we just entered this with the journal entry directly into the the checking account or if we use like a deposit form to enter the journal like you could use a deposit form to enter a journal entry then the matching mechanism would actually find the match possibly and so that actually might work quite well in this one because this should be exactly tied out so but in any case we'll save it here so I'm gonna say Shopify clearing and so let's add it and check it out and so if I go back on over to my balance sheet my balance sheet exit and we save run it now we've got the the clearing account for the payments clearing account went back down so if I see this clearing account if I go into it this should be the pattern that I should I should see it should see it going up and then going back down where's and I don't where did it go I think I went into inventory let's go into this one this is you got to right zero that one so then so it goes up with the journal entry and then it goes back down with the deposit form that we created from the bank feeds and then it's back down to zero that's what a clearing account means it's not a temporary account those are income statement accounts for the most part because they close out to to equity this is a clearing account alright I'm gonna exit this one and then let's do the same thing on the PayPal side PayPal side same thing but PayPal hit us with an added fee so note there's an added little wrinkle on this one now like sometimes PayPal will actually if you use the PayPal integration you can see it's a little bit different so PayPal integration will actually break out the fees so for example if I look at if I look at this one it's it's has some different options than a normal bank feed and it's saying hey look there were fees of 766 so it might actually take care of the fees and also looks a little bit different that you can make it go to a sales receipt or deposit form then the other bank feeds so when you use PayPal you could set it up as like a normal bank feed or you could set up the PayPal integration which might give you that added bit of detail of those fees now I'd I use the PayPal integration but we just uploaded from from an Excel or CSV file so we don't have that breakout here so that means that this amount is not gonna match out to to exactly the amount that we put in our our clearing account right it's not gonna match out exactly to if I go to my clearing account I'm at here and if I go here then I'm at that and that you would kind of expect that to happen due to the due to the fees unless again you have that integration that exactly broke out the fees so I can I can match this one out and I'm and I can account for the clearing it's not gonna clear out perfectly so I'm gonna say all right I can see that matches out and they charged me some fees on it and so let's say this is gonna go not to the Shopify clearing but to the Shopify PayPal clearing and it's not gonna exactly bring it down to zero because of the fees so I'm gonna say add it all right and then if I go back on over to the balance sheet we're gonna say run and now the the the pay the PayPal clearing still has $5.55 in it so if I go into that the clearing account went up with the journal entry went back down with the deposit just like the other one but it left $5.55 and I can double check that if I want to look at my PayPal stuff but I can assume that that's gonna be fees for PayPal so I can read I could further reduce my clearing account with a journal entry if I needed if I needed to if it wasn't taken care of by the PayPal integration app so and then the other side went into my PayPal bank account which is moved it up to the bank account so that's how those clearing accounts work so let's do that last journal entry I'm just gonna say all right let's just journal internalize journal journal journal world lies it out of the $5.55 that last bit so I'm gonna take the $5.55 out and I'm gonna say let's go plus new journal entry boom and I'm gonna say that it's gonna go into charge what do they call it something like Shopify Shopify fees Shopify fees just say fees PayPal fees I have a PayPal fees let's do that one so that should be an expense form and it's gonna be 5.55 and is that how much it should be yes and then the other side is gonna go to the PayPal clearing account 5.55 okay so let's go ahead and save that so we'll say save and close and then if I go back to my balance sheet and run it that clearing account should go back down to zero so the Shopify PayPal clearing back to zero and then I'm gonna go back on up and exit and my income statement now has the fees and charges it's probably nice to break out notice in this method you can break out your fees for the PayPal fees versus the Shopify fees and other kinds of fees and that might help you manage what best practices are for your business so the bottom line is our our bottom line is 1633 43 and that should match your 1633 43 but now we have more detail on the income and expenses let's compare that if I bring this up to November 11 30 to 5 and I run this side-by-side month-by-month comparison on on the income statement you could see you could see what we did on the other method which was just waiting till it hits the bank right when I waited till it hit the bank we just recorded you know everything in in Shopify sales I think we weren't breaking out this or this and we just waited till it hit the bank and then we made a journal entry adjusting for the fees like us like imagining we're matching it out to the to the 1099 so this you know gives us a little bit more details fairly basic example of it but it breaks out a bit more detail then simply waiting till something clears the bank in order to record it and also what we'll talk about in future presentations is the integrations which could include like an integration for the commerce integrations that are actually in QuickBooks now which does a similar thing as this journal