 See where the bank recs are located. I'm gonna go to the tab to the left and go down to the accounting on the left-hand side and then you've got a reconcile tab. If you're under the business view, by the way, if you're in the business view, the bank reconciliations I think are in the bookkeeping and then the reconcile. So they're under bookkeeping and then reconcile. Okay, so we've got this. It says match the books to the bank records. Connect accounts are easier to reconcile, connect now. Now note, clearly any kind of online system these days has the capacity, they're trying to, they have the capacity to connect to the banks. From a marketing standpoint, they're gonna basically say, hey, look, if you connect to the banks, your whole accounting system's gonna be a breeze. It'll just be easy, automatic. That's not exactly true. It's dependent upon the type of accounting system you're in but you can understand why if you're trying to sell accounting software, they all basically say, it's just gonna, there is no thing as bank reconciliations anymore and that gives rise to this idea of the bank reconciliation isn't a thing anymore. It is a thing. It just might be done a little bit differently as we have electronic transfers and the bank feeds. So anyways, keep yourself on track, find holes in your accounting, get things tidy for taxes. Whoa, they got the little rhyme going there. So reconcile, like a pro, get your books and your bank statements to agree. I'm gonna go to most reconcile. Okay, so here's the reconciliation screen. Which account do you want to reconcile? The typical accounts that we're gonna reconcile will be the cash accounts and possibly the credit card accounts. Now note that the credit card accounts oftentimes don't get as much focus when people are talking about how the accounting systems work but they're gonna be similar to cash. You can imagine a system of course where you do all of your payments through a credit card instead of the checking account and then you just pay off the credit card monthly so you don't get a bunch of fees and then you could still be reconciling the credit card that's a financial institution that you can reconcile with. However, if you're using a credit card, it's quite likely that you're gonna be using electronic transfers and most small businesses that use the credit card are constructing their books directly from the feeds of the credit card as opposed to entering the transactions first and then reconciling to the credit card. So therefore the reconciliation of the credit cards will usually be very easy such as a system where you're construction your books from the banks, like that thing with a YouTube revenue or something that you can construct your books from the banks, that makes the bank reconciliation very easy. Okay, but we're gonna do the checking account here. Now the first issue we have, this is a beginning balance issue is that the beginning balance may not tie out to what is on our bank statement, beginning balance. So we've got 30,000 at the beginning balance here and over here I have 25,000. Why? Why does this happen? Well, you'll recall when I entered the beginning balances into the QuickBooks system, we had to enter them. I imagined whenever we start a new company file, we're gonna have to pull the numbers in from the prior company file. Even if we started a new company file from scratch, it's likely that we already have the bank set up or something and we had to put the beginning balance of the bank on the books. Now if you're pulling the numbers in from a prior accounting system, I've gotta use the cash number that is on the prior accounting system to put in the beginning balance in order to be in balance. But that number might not match what's on the bank statement for the beginning balance because of outstanding items as of the prior period in our case, December 31st, 2022. So there's this beginning balance issue that we're gonna have to deal with oftentimes and what that's gonna be made up of again is the outstanding items as of the last time period. So there's a couple of different ways that we can deal with that. I'm just gonna recognize that it's a problem and then move forward with it from there. Now note there's also another problem that could happen. You might have just a zero here for the beginning balance because maybe you entered the beginning balance in as a journal entry as opposed to using the beginning balance function in QuickBooks. That's kind of okay as long as it ties out because in the first bank reconciliation, you can just check off the beginning balance as something that's kind of cleared and just note that that's what you did for the first bank wreck and then you'll be okay with that. So it's not a big deal if that's the case either. I'll show you more of what I'm talking about in a second here. Let's go to the ending balance date. Ending balance, not date. This is just the ending balance is 61, 241, 85. So it's gonna be 661281.45. Is that right? Better when you have two screens, 61, 241, 85. Okay, and this is as of January 31st. We're gonna say there we have it. And then it has down here enter service charge or interest earned. Now these are items that oftentimes we don't know about until we actually get the bank statement, meaning I wouldn't know if they charged me interest or if I earned interest or if I had a fee until I got the bank statement cause they would just take the fee out of my bank and they would just give me the interest and I wouldn't know about it. If I had bank fees, I would know about it because it would flow through. I would see it in the bank feeds and I would record it. So more and more these two fields are becoming irrelevant. I never liked using them anyways. These will basically record the transaction as you go into the bank feeds. I never use them because one, most people have bank feeds so they've already recorded it meaning this would be redundant if you entered it twice. It could cause you an error there. It's really a legacy from before the bank feeds and stuff. And then two, even if I didn't have the bank feeds, it kind of confuses things. I would rather see everything tie out and then I'll record any differences that are on the banks that's not on the books. So let's go ahead and reconcile.