 Look, here's the money that was electronically paid to whoever the vendor is, and it's a legitimate business expense, right? So that's why for any legitimate business expense, you would typically wanna write a check. You would typically want an electronic transfer so that you have a clear audit trail of who you have paid. If you're paying cash for something, you don't have an audit trail, you have to save receipts like the old days. You're gonna have to have a bunch of receipts that you can then make a copy of and put into the system, but that's not the ideal way to do it. Now, sometimes cash is still king, like if you're tipping people and whatnot, maybe the cash will go a little bit longer. Some people like doing transactions in cash, so if you still have to use cash, fine, but the general rule is I would like to not use cash and just use electronic transfers and checks for business stuff if possible, and therefore any draw of cash, I can assume will be a draw from the owner for personal use. In that case, it'll be part of the equity, decreasing the equity account over here as a draw instead of going to the income statement as an expense. So we'll show both methods here. I'm gonna imagine it's an expense. So we're gonna say it's an expense. I don't know what it was for. I'm gonna put it into miscellaneous expense. So other miscellaneous expense. And then next time we'll show it as a draw and we'll look at the difference between those two things. So let's go ahead and save it. So we have recorded new transactions that we knew about now because of the bank reconciliation. If I go to my balance sheet, my bank balance has now changed. If I go into the transactions, we should have then the bank charges and the expenses that we put in place. Let's go back. Let's go to the income statement. Where do they show up on the other side of the transaction? We should have bank fees that are now under business expenses. I'm not sure I need the subcategory of business expenses. So I might remove, probably if I have time we'd remove that, we might do that later. And then the other side, we put into miscellaneous expenses which they put down here into other expenses which it may or may not belong in other expenses. A lot of people dump stuff into the miscellaneous expense that are normal business expenses but they have no other place to put it. So again, I'm not sure that categorization down here would be appropriate, but if you properly used it that might be the way to do it because these would be expenses that we don't know where they go, can't categorize them, therefore they're down in the other area. But there they are. So that's that. And now if I go back to the first tab and we go back into our transactions and reconcile, we can continue with our reconciliation, we will resume the process. Closing this out, don't show me this again. I've told you once, if I told you once, I told you a thousand times. So this is gonna be then 15 and 150. We should be able to find those and check them off. Here they are, the 150 and the 15 done. We'll X those off. These have been found. Boom. All right, so now we have everything that has been found except for these two. So if I look at my balance now at this point in time, I'm gonna say, okay, what is happening here? We've got this 11829 that should be there minus the 1000 minus the 4000 is gonna give us the 106829. And that's what should be over here now, 106829 because I have that 5000 that's messing me up right now. So I have the 5000 messing me up there and I have this 30,000, which is messing me up for the beginning balance which is showing on our side as a deposit instead of the beginning balance and it's showing has 25,000. Notice that those two things net each other out. We'll talk more about it later. But if I was to say, hey, I'm off by 25,000 right here. I don't know, like if I didn't know what was going on, I might say, well, I don't know what's going on, but if I just click off that 25,000, boom, the difference is down to zero. I'm good to go. And you could kind of do that if you, in some cases that might work. However, you're not really entering everything in there and that will not always work, right? Why does that work in this case? Because the difference between the beginning balance of 30,000 and these two checks is the difference of the 5000, right? That's netting out to the 5000. But if these checks didn't clear, meaning these were checks that were written, we're assuming in December, but then they cleared in January, which we're reconciling now. But a lot of times you'll have checks that are on the books that shouldn't even be there because they were entered twice or something and they're never gonna clear. If they didn't clear in January, this will not happen. If this check right here, this 1000 doesn't clear in the following month, then that won't work because now you're gonna have 4000 here versus a difference of 5000. So I just want to note that that could happen and that could kind of work. Even if it does work that way, you still wanna be skeptical to do that because what you'd really like to have happen is to show that these checks were written in the prior period and they were cleared in the current period, which means we would like to actually physically put these checks in our system as of the prior period and then we'll adjust this beginning balance to be 30,000 so it'll match what we have. So we'll have the same beginning balance of 25,000 but it will be in there as a 30,000 here and two checks, the 4,000 and 1,000 representing the outstanding checks that were in our system simulating what we would have had in our prior bank reconciliation in the prior accounting system, having those outstanding items representing the beginning balance so we can properly reconcile. So we'll do that next time. So I'm gonna uncheck this right now and then we'll dive into that in more detail next time and once we do the first reconciliation, again, the next reconciliation will be easy because we'll have a beginning or cleared balance which will be proper, which is in the same accounting system which will then be the proper beginning balance for the following month. Let's take a quick look at our trial balance just to see where we stand because we did make a change. So here's our trial balance as of now. So these are our balances. If your number's tied to these numbers, great. If not, try changing the date. See if it's a date range issue. All we did was adjust the bank account and then we made adjustments to that miscellaneous account down below as well as the bank charges which are right here, I believe, the 15.