 but if they don't bear with me it's a practice problem. I tried to line everything up here, but we'll go to the payments. So let's see. This one was $12,000. So this $12,000 I entered with an expense form instead of a check form so we don't have the check number, but I could still tie out the $12,000 and I can see the date is pretty close. So I have fairly good confidence that that's the one. Again, if I wanted to look at the actual vendor, I can look at the vendor here and the canceled check, possibly go into my bank account if I needed to double check it there. So I'm going to then go back on over here and say, okay, that one is checked off. Maybe I'll do the whole thing here and make it green. Okay, then I have the $1,000 and the $4,000. Now these two I'm going to go over and say, hmm, those are not here. If I look through here, I don't see those and that's going to cause me some worry. That's the beginning balance problem. One of those issues, those are checks that we wrote last month in December in the prior accounting system, which were outstanding as of last time and now they're clearing. So what do I do with those? Okay, I'm going to deal with those later. Right now I'm just going to keep on pushing forward. So I'm going to say, all right, I recognize that those are a problem. Let's go to the $16,000 on $1002 is the check number. And so we'll say, okay, $16,000 right there. I don't have the check because I entered it as an expense form. Okay, but I'm pretty confident that's the one. So I'm going to say that one is checked off to $7,114. So $7,000 is here. So that so again, I entered it as an expense form. Okay, so that one good. I'll say and then the $6,892 on $118,1005. So there's this one. And the check number actually ties out this time that is good. Again, a lot of people are I'm going to minimize this by the way, a lot of people probably are using electronic transfers these days. So you're not going to have the check numbers, but your dates will be will be more relevant in that case. Okay, so then we're going to say that one is is gone or done or checked off, let's say 72 1006. So we've got the 72 on what that's check numbers 1006. Okay, so that's good. And then I have the 3780 1007. So there's the 3780 1007 1004. Okay, that's the check number 1004. Notice over here, they're not exactly in the same order. And that's something to recognize. Why would that be the case? Because on this side of things, they have to put it by they're going to put it by date most often, right, they're going to sort their their transactions by date. But the date that the transactions cleared the bank might not be in the same order that we entered the transactions on our side, especially if you have check forms, because because it'll depend on the people that receive the check and how long they took to deposit the check. Now if they're all electronic transfers, again, it'll be probably pretty easy, because then you're probably just entering your information on your side from the bank, and everything will tie out like exactly right. So this this one's 1004 3780. Did I already do that one? I think I did that one. That one's done. And then this one's let's try to do two at a time. Let's get crazy 12,000 and 620. So 12,000 here and 620. Boom, leveling it up right there, leveling it up. Alright, okay, and then we're going to go back. I've done those two to do. And so and then the last one is going to be 15,000 15,000. Here we go. So that one has been found. And I'm going to say that one's good. Okay, now these two, I'm going to say I don't find those I don't see the withdrawal and I don't see the bank service charges. And if you were using bank feeds, you probably would see those because they would come in through the bank feeds, and then you would have to enter them from the bank feeds. If you're not using bank feeds, then you would reconcile either way, you could have a similar issue, you know, with those transactions, you're going to have to record them, you know, as they come through on the bank feeds. So as of now, we have these two, these two that we're going to deal with later. And we have these two that we're going to have to enter. And then we have all of these ones that are in our books, but not on the bank statement. What about those? Those might not be a problem. How can we check if they're a problem or not? Well, we could look at the bank state or the bank account online after January in February to see if these cleared. And if they all cleared in the following month, then they're not really a problem because they're just the outstanding items. They are the timing differences. They are the reconciling items between the bank balance and the book balance that will be on the report that will be generated once we finish our bank reconciliation process. So you can see what we're doing. We're finding everything on the bank statement on our books, but the stuff on our books might not be on the bank statement. That's okay. That will be the exact difference once this number gets down to zero. Okay, so now let's deal with let's deal with with these these two down here. So we have a withdrawal and we've got the bank charges. So what I'm going to do is I'm going to say let's leave this for now. I'm going to save it for later and enter those transactions in. And then I'll come back and be able to tag those off. So I'm going to I think the easiest way to do that is in the register. So I'll go directly into the check register and say where's that it's in the it's in the transactions check register close on the hamburger. We're in the checking account. I'm just going to go into the register and enter these directly into the register. Let's select the drop down and I'm going to use an expense type form because these are decreases. So I'll use an expense type form as of the end of January. That's what we want. So the first one we had was the bank charge. I could say it's what do we say chase or who's our bank. I don't know chase. Let's say and we're going to say chase is the vendor this time. And this is going to be bank charge. I'll put in the memo. It's going to be a payment of $15 I believe it was. And then I'm going to see if QuickBooks has a bank charge fee which it typically will. So because bank see if we have bank service charge. Hold on a second. Bank service. I know it has one. There it is bank fees and service charges. So it's a sub account of something on the general ledger. But there it is. Let's use that one. It's a sub account of general business expenses. Okay. So I'm going to say that one's okay. And then that should allow me to add the bank charges. So I'm going to say all right. Let's save that. And let's do another one for the withdrawals. So this one the owner took the money out. So I want to put owner as a vendor this time. And that's because it's not really a vendor but we can only have a vendor or a customer. So I'm going to say vendor because the money is going out. And then this was a draw. Now here's where the issue is. It's a payment. I know what the amount is. The amount is $150. $150. If they took that out of an ATM or of the bank then the question is what was it for? And hopefully what you'd like to do is say and if you're a bookkeeper you'd like to try to manage with your clients and say hey look don't take money out unless you're taking it out as a draw. It's for personal use. You're going to take it out and then you're going to use it to go to Disneyland or buy your personal dinner or go to the movies. Whatever you're going to do. What you don't want to do is take the money out and then pay for business stuff with cash. Why not? Because there's no audit trail then because we as the bookkeeper don't know where to put it on the expense side of things because we see the money coming out but we don't know where it should go. Now note that this idea of an audit trail for taxes if we're thinking about taxes in the United States on the expenses if we look at the income statement you have income minus expenses. Expenses are deductions for taxes. Everything's flipped on its head. The deductions are good. We want net income to be low on the tax return so we pay less taxes. So that means that the expenses are good if you have something that's a legitimate expense. You want the audit trail because if the government came back and audited you we would like to say