 In this presentation, we will continue on with the bank reconciliation for the first month of operations this time looking at the actual bank reconciliation report. Let's get started with Sage 50, Cloud Accounting. Here we are in our Get Great Guitars file. Last time we entered the bank reconciliation. This time we're going to consider the reports for it. So let's go to the reports dropdown. We're going to go then to the financial statements. Let's first open up the balance sheet report. Once again, we're going to be taking a look at the month of January dropdown range, month of January first period. Then we're going to say, okay, there's going to be our balance sheet. We're focusing in here on the checking account, which is at 9528642. We're reconciling that to the bank statement, which has an ending balance as of the same date, January 31st of 109917. There is a difference there. We take and tide everything that's on the bank statement onto our books. If it was on the bank statement, it wasn't on our books. We added it to our books. If it was on our books and not on the bank statement, those are the reconciling items. Now we're actually going to look at the report to show how those reconciling items can be used to create the bank reconciliation. So let's go back to our reports. That's going to be in the reconciling reports. So we're going to go on down to the account reconciliation reports down here. We want to pick up the account reconciliation. So we're going to pick that one up. It opens up just to like a random report. So you might want to then go to the last one that was open. So you might want to go to the cog up top and make sure that you are in the checking account. We want to be in the checking account. We want to be in the month of January. So the period being the end of January. Then we're going to say, okay, and this is going to be our report. This is the actual bank reconciliation. And oftentimes, many times when people do bank reconciliation, they do the process of reconciling. And they don't even look at the report. We don't have an idea of what is actually the report that's going to be used or why it's important on it. And that's fine. I mean, that's still good that there's people are doing the reconciliation. But you kind of want to know the reconciliation report because this is really the purpose of the bank reconciliation here. So notice what we have. We've got the cash receipts, the disbursements. The other that's going to give us our ending general ledger balance. That's going to be the 95286. So the 95286, that's what's on the balance sheet here. So that's what's on our balance sheet, the 95286. Then we have the comparison of that to the bank balance, which is the 109917, which is of course the amount that's on the bank statement. What we're trying to do is reconcile those two items because if we can do so, then we have a good verification. I want to know exactly what the difference is. And this is the actual report that like an auditor would want to verify the cash accounts. And again, when we verify the cash account, it's not just the cash account. If we verify cash, we really have a key component in all the processes that are the accounted processes generally. So then what's going to be the reconciling item? Well, there's an outstanding deposit of the 139875. So that is an amount that's on our books. That's not on the bank statement. Why? Because it hasn't cleared yet. And again, I'm not really as concerned with that particular item. I mean, if I want to check that, I could see if it cleared in February. If it did, then fine, it cleared in February. But really what we're looking for is to check all the rest of the numbers, right? I want to check that the balance is correct. And that individual item is just a reconciling item to help me check the entire cash balance really. And then the outstanding checks are going to be these checks. So once again, these are items that we didn't check off. They're the ones that were on our books, not on the bank statement because they haven't cleared. If we have concerns about any one of these items, we can and probably should, then go to the February bank statement to make sure they cleared in February. If they did, then it's just a timing difference. But these are still important numbers because they're going to tell us what the difference is as of this point in time. And so those are going to be the outstanding checks. And that's going to be what the difference is. Those are the differences between the book balance and the bank balance. So this is going to be the reconciliation process. Now next time, what we're going to do is the bank reconciliation for February. And you would think that if these items were written on our books in January, but they didn't clear the bank in January, that they would clear in February. So when we do February's bank reconciliation, we'll see that timing difference kind of washing out as these items, which are outstanding in January, are going to clear in February. So we have that kind of timing difference there, of course. Then we're going to have items that are written in the end of February that aren't going to clear in February, but are going to clear in March. So you could see how this timing difference kind of moves forward, right? You've got these outstanding here that are going to clear in February. So on the bank statement, they'll be in February, but in our books, they'll be in January. And then we're going to have stuff at the end of February that are in our books at the end of February, because we wrote them at the end of February, but they don't clear the bank until March. And that's what we'll see. And so we'll continue on with this process next time. It's going to be great. That's going to be it for now. Let's get out of here.