 Now note again that if you're pulling money out of the checking account, just pulling cash out, we would like to come up with a system that we're only doing that if we're pulling out for personal use. In other words, if you're going to pay for something for the business with cash, that's not typically what we would like to do because we want to have an audit trail for anything that we're paying because we want to be able to verify that we're paying it for the business. So if we have a legitimate business expense, especially in the United States where we have an income tax system, if the IRS comes back and says, what did you spend this money on? What we would like to be able to say is I have this audit trail that shows it clearly being spent on this particular thing, which is easier if we're not doing cash transactions, right? The cash transaction eliminates the ability to make that connection, which you might want on the personal side of things, right? I don't want the IRS tracking all my personal transactions and whatnot, but I want to be able to write off the business type of transactions. So that's what we would like to do. Every time if you're taking the money out, just cash, then try to do that with just draws. If it's a business expense, use some kind of electronic transfer so that we can make sure that we have an audit trail for it is the general rule. If you do pull money out for tips or something like that that are business related because cash is just the best method to use, then you want to have to keep the receipts and whatnot so that you can verify the transactions you're making. So let's imagine this one was taken out for personal use. So I'm going to add the details and I'm going to say that this is going to be a transfer, okay? We might just put like owner, owner, owner. And then I'm going to say it's not an item reoccurring transfer and the account that it's going to go to is draws. Draws. Now if we're just taking money out kind of like a salary out of the business that's somewhat standardized, then we'll be able to see that clearly. But any money that's just cash coming out of the checking account that the owner's pulling out, we would like to be able to assume that as draws. Now if you can't assume that, then you're going to have to say and your bookkeeper working with someone else or even if you're doing your own books, you're going to have to then say, okay, what did I spend this cash on? Again, that's not what you really want to do. That's kind of a pain to have to do that. So you'd like to be able to assume it was draws. Okay, I've said that. You're beladdling the point here for crying out loud. We hear you. We hear you. Okay, just making sure because it messes me up, man. It messes up my bookkeeping. So I want to make sure you know what I'm talking about. In any case, we're going to go down in the checking account. So if I go into the checking account, we see it coming out of the checking account with a money out form $75 and back to the balance sheet. Nothing happened on the income statement. The other side, of course, on the balance sheet, you can call it like a Contra equity account down here with the draws because it's pulling down the equity. So we took this money out, but it didn't flow through the income statement like on retained earnings. It's just went directly to the draws account. Well, the current earnings would flow into retained earnings. The current earnings flow, this is the draws. Now the other thing I just want to point out here is that if you've taken accounting courses, then you'll note that the temporary accounts are the income statement accounts which will close out to retained earnings. And typically we close out draws to retained earnings as well annually or possibly monthly, usually annually, most likely for small businesses. But zero will not automatically close out the draws to the retained earnings. It will close out automatically the current earnings from the income statement to retained earnings. So it's not a big deal. If you don't want to close your draws out, then this draws account is just going to keep on going up. This will just be the lifetime draws instead of the current year draws. If you want to track your draws just for the current year, you can go into the draws account, look at the detail and see what happened in the current year, what was the increase for the current year, or you can do a year end adjusting entry, closing the draws out to retained earnings so that you can just see the draws accumulating upwards for the current year. Nothing happened to the income statement, which is good. If we did record it to the income statement as miscellaneous expense or something, it would be an increase to the expense, which would be lowering net income. All right, let's do another one and imagine that we paid for something that I'm seeing in the bank feeds, but it was for something personal as opposed to business related. So let's pick up another one of these items here on the Primarica. Let's just let's do another one of these and pretend that this one was for personal use. Let's pretend it was like Disneyland or something. I look through here and I say, that's not a business thing, but it came out of the business checking account. Well, what do I do now? Because what should have happened is you should have taken the cash out of the checking account, which I would easily see as a draw because it was a cash draw, which I would have recorded the draws, and then you could have spent the money out of your personal account for Disneyland or whatever. And then we can track that on the personal zero side of things, but you didn't do that. We didn't do that, let's imagine. And we put it, we just spent money for personal stuff out of the business checking account. Now, obviously one of the problems with that is it's difficult, especially if you have a separate person doing the bookkeeping, then the owner for them to be able to say, is this business or is this personal? What account should it go to? But if we can differentiate that, we could say, well, I know this is personal, then we can put it to the draws account directly, right? So now it's not a big deal. We could still deal with it. We could just put it to the draws account instead of to the income account. Now, the other thing you could do if you want to track personal and business on the same, in the same zero software is you might try to use categories breaking out the income statement between business and personal so that you can put it to like a personal expense account, entertainment that's personal and possibly break out a different column on the income statement. That adds a little bit more complication, but it allows you to track business and personal in one account. You can't really do that with larger businesses, because the balance sheet is going to be more difficult to break out. And sometimes even for taxes, you need to report the balance sheet on, but possibly small businesses might be able to get away with that. So you might want to look into that option. All right, so I'm just going to add the detail here. That's the wrong one. Hold on a sec. Hold on a sec. I want to add the detail for this one. Okay, so and I'm just going to say Primarica. Okay. And then I'm going to say this was for personal use. So we'll say $25 and I'm just going to put it to the draws account. Draws, draw. All right. So now, so now we'll just put that directly to the draws account. So I'll just save it and boom and reconcile. Okay. So then if I go back on over here, I could say update. It was a decrease to the checking account, which is a liability because it's overdrawn. And now the draws account has the 150 in it. So there we have it. And so there we have it. Now, the added complication with this is that, you know, we're not showing any detail for the personal side. You know, if you want to track your personal financial statements, you would like to record that as a personal expense on your personal financials, which you might do in another zero accounting system. Or again, you might use that class tracking kind of system. But a lot of times people are really kind of just concerned with getting their corporate or their business side correct so they can comply with whatever needs need to be complied with such as in the United States, for example, taxes. But in any case, nothing's recorded on the income statement for that transaction. Let's notice if I go to this first tab, by the way, we've been still building our financial statements from this information. So you could see that the we've been reconciled everything here, our account transactions, we've been making our account transactions and reconciling them, meaning they obviously tie out to what's on the bank statement because we built them directly from the bank statement. So we're creating these transactions from the bank feeds as we go in our contacts. We can also see that we are creating our contacts as we go and we've been creating our chart of accounts. All right, let's open up another tab, right click in the tab and look at our trial balance just to see how these trial balances is formulating because I think that gives us a good look of what is happening reports and trial balance, trial balance. And this is just a trial of our balances. So if I scroll down notice, this is just the balance sheet on top of the income statement now. And now we've added another account to the equity section. So equity stops that retained earnings and then the income statement happens income minus expenses debits equal the credits because I have all the accounts balance sheet and income statement accounts in debit and credit format, which is the same thing as saying in double entry accounting terminology that the assets equal the liabilities plus the equity, right. But where does the income statement fall into assets equal liabilities plus equity? The equity actually includes all of the income statement, which is summarized here at the 83849, which is what's on the income statement, 83849, the income statement given us that performance statement, the temporary accounts showing our performance over a certain timeframe a month or a year, for example.