 In this presentation, we will continue on with our bank reconciliation for the second month of operations. Last time we focused in on the beginning balance and the deposits. This time we're focusing in on the checks and other outflows. Time to engage with SAGE 50, Cloud Accounting. Here we are in our Get Great Guitars file. We're going to start off by opening up our reports once again by going to the reports dropdown. Let's take a look at that financial statement report. That being the balance sheet report, that's the one we want. We are in the month of February, which is period two. That's the one, so I'm going to say okay there. And then we have the checking account. We're focusing in on the checking account, which is at 105-3601. If we then take a look at our bank statement, it's at 105-573-84. They're not in balance. Therefore we need to do the bank reconciliation, which we are in the process of doing. This time we reconciled and took a look at the deposits. Time those out. This time we're going to be looking at the checks and other decreases. Let's go back on on to our reconciliation, which is in process. This is where we left off last time. We are in, of course, the checking account. We have the reconciling of the deposits. I'm going to go ahead and go to the dropdown up top. Now we want to take a look at the checks and other bank debits. Again, debits and credits, they're bank debits, so they're kind of reversed. So don't let the debit and credit thing mess you up. So we're going to go back on over here and we're going to say then, we're reconciling from the bank statement to our books, recalling that if it's on the bank statement and not on our books, we're probably going to have to add it to our books. If it's on the books but not on the bank statement, then it may be an outstanding item and that's okay. That's going to be one of the reconciling items in our bank reconciliation report. So if it's a check, also remember that it could take longer for it to clear. If it's a check, if it's an electronic transfer, it should be pretty close in terms of the date within like three days or something like that. And you might have different kind of reference numbers with regards to electronic transfers. They could help you out with the reconciliation process as well. So we're looking for that 11,000. Let's go back on over. We'll do some ticking and some ticking and some tying, some ticking and tying. So we're going to say there's the 11,000 found it. I'm going to go back on over here and make that green because green's good and it says it's good. So I'm going to do two at a time now. We're going to go a little faster here, the 500 and the 360. 500 and 360, there they are right in order. So those were easy. Two at a time. We're getting good at this. We're getting good at this. May expand it to three, maybe not yet though, not yet. I'm not feeling that confident yet. So we're at the 353933. That's a long one. Let's do that one by itself. 353933. I'm going to pick the one up top. Notice that's a repeating item here. So we have to be kind of careful. Actually, it's not exact here. But when you have the repeating items, you got to be careful that you're picking up the right one with regards to it. So I'm going to go back on over here and say we got the 353933. 353933 has been found. Now the 630. So let's find that 630. So here is the 630. There we have that done. And then we've got the 1359. The 1359. Let's find that. 1359. Done. Found it. So there is that. And then we've got the 168. So the 168, 168. Back on over, there's that one. So found it. 168. And we found that. Then we have the 1359. 1359. So the 135, that's at the bottom here. So there's that one. 1359. And then we have the, let's make that one green. I found that one. Make it green. And then the 12337. 12337. And that one, I don't see. So there's a problem with that one because it's on the bit. So I'm going to say, ah, man, I'm just, I'm not going to let it bother me right now. I'm going to just keep pushing forward and see if I can find the rest of them. So there's the 830. So 830. Let's see if we can find, there's that one. So that one's there. 830. And just realized that the dates here on the bank statement should be after some point after the bank, the amounts on the books. And again, they'll be pretty closed if it's an electronic transfer. If it's a check, it could be quite different. So if I messed up any of the dates and didn't make that the case, then you know, bear with me here. So I'm going to say the 648. So we're looking for the 648. So there's the 648 there. So that one has been found. And so I'll make it green because that's what we do when we like find them. So our process has been like the whole time. So here's the 351271. The 351271. And has that one been checked off yet? No, it's still unchecked. So that's good. So there we have it. So now we have, these items haven't been found yet. Let's see. Well, let's make this one green. I'm going to make that green because that one's been found. And so we have, we have the problem in that I couldn't find this 12337. And I don't think I'm going to find the withdrawal and again, the bank charges. Because if I don't have bank feeds, they're not going to, those probably aren't going to be on our system. So now we're off. You would think then by this and then these two, which add up to about 243. According to the sum function down here, if I go back on over to the bank rec, we're off by the 24337. So that looks about right, right? We're off by the 24337, 24337. So that means we're going to have to add these are on the bank statement, not on our books. We're going to have to add them. So I'm going to find that this one's a little bit more unusual. I'd have to go figure that one out and go to the bank. And if it was a check, I can look at the canceled check. If it was a check for whatever reason that clear that's not on our system, or if it's an electronic transfer, then the bank statement might provide me with some more information such as the vendor for it. And I can go in and then add it to our system, check and make sure that it should be there and then add it to the system. So I'm going to say we did that and I'm going to go, all right, now we need to add these to our banking. So I'm going to go to the banking section. I'm going to go up to the rec and to the account register. So put up the old account register over here. Because that's where that's the easy way to input this stuff, right? We're into the easy way of doing the thing. And then I'm going to say the drop down. That's going to be the checking account. So I'll enter it as of the end of February now. Actually, this one they want it should be in there as of the 28th. That's good. I'll put it the end of February. And then I'm going to say this is a payment. And I'm going to say reference. I'll say E 14. I'm going to say the payee. And I'm going to add this one. I'm going to say that I looked it up and this was a roof. Some kind of window repair shop. Because somebody broke our, we had a window problem. But it's okay. We fixed it now and we fixed it with easy window repairs. That's going to be the name of the vendor that helped us out. And even though it probably even made it so the heat doesn't get out as much. It might help with our electric bill even. So it was actually a good thing. And then the expense account is going to be repairs and maintenance over here. So we're going to be picking up the repairs and maintenance. See here's maintenance and repairs. Let's use that one. That's going to be our default account for the three five or the six three five zero. I'm going to go ahead and add that or save that and then close this back out. And so there we have that. And so the payee is going to be easy window repair. Now the account is populating automatically, which is going to be that maintenance account. And then I'm going to say if this is window, window repair. The payment is for that. How much was it again? The one two three three seven. This is going to be the one two three point three seven. And there it is. So let's go ahead and save that. And that should populate. Let's do the other ones now and the other ones a withdrawal. Now this time we're going to say that that withdrawal was taken out by an owner. Now if it's a if it's a corporation, it would be a dividend. But if it was like a, you know, a partnership, it would just be a draw of some kind. So we're going to put it to an equity account this time as opposed to an expense account. And that's if typically what you would like to see if you're doing the bookkeeping. I mean, if it's cash coming out of the company and it's not used for an expense, then if it's an expense, you want an audit trail. You'd want it to be having electronic transfer check, something like that. If it's just cash coming out, then we would assume then that it's going to be a draw. And that might be the way you'd kind of want to think about that. So then we're going to say that the, this is going to be a payment. I'm going to call it a draw. And the payee and we're going to say is the owner this time. And then again, if it was a corporation, it would be, it would be a dividend, you know, kind of a draw like that, but I'm just going to put it into an equity account. If it's a partnership or something, it would be an equity account. And so I'm going to, I'm going to call it a dividend here because we're set up as a corporation. So I'm going to say this was a dividend money going out to the owner similar to, again, to a draw if it was a sole proprietor. And then I'm going to say the memo draw or dividend. And then the payment is going to be for the amount of the $100, $100, $100. And then let's go ahead and save that. And then we're going to do one more. The reference number has been, okay. I think that's okay. I'm going to say, okay. And then the last one's going to be that bank charge. So the bank charge. So I'm going to say this is a payment. It's going to be, I'll just call it bank charge. It's going to be chase, let's say, and the account's going to 250. Is that right? Now I clicked off of it. So I'm going to click back on here. No, that's not the one we want because that's at the loan account. We want to see if there's some kind of service charge account that I saw last time. It's going to be bank service charge expense. Let's do that one. Service charge expense. And there we have it. It's going to be bank charge. And the payment is going to be $20 this time. I believe it was. Let's double check that so I don't mess it up. $20. I knew it. I didn't even have to check, really. I was just checking just for, all right, there it is. Save that. And then I'm going to close this back out. And then we're going to go back on over here and then go back in and see if we can check those off now. So now we're going to say, all right, now we should have these, the 123.37. So the 123.37 should totally be there now. So there it is, 123.37 for that window repair. They were nice people. Glad they're doing business with them. We're going to close that one out and make it green. And then we have the 100 and the 20, the 100 and the 20. So we're going to pick those up. So there's the 20, there's the 100. And that puts us in balance down below. So now we're in balance. Everything looks good. We're on the right date. Everything looks good. Now we haven't found a home for these on the bank statement. We found a home for everything on the bank statement at this point. Let's just review because I'll make these green. Let's say we found a home for those. We found a home for everything on the bank statement on our books. We haven't found a home for everything on our books on the bank statement. And that's fine because that means that these are going to be the outstanding items. So if we're worried about any one of these items and we may be, we might want to go through each one of them and check them. We could see if they cleared in March, right? And that's fine. If they did great, then there's still a reconciling item and they're going to be part of our reconciliation reports by the cash account balance as of the end of February. So let's go ahead and save this. So I'm going to say, let's say, okay, that has been done. Let's run the report now and just check it out. So we're going to go to the reports up top. I'm going to go back to the financial reports because I can't remember which section it's in. It's over here. It's in the account reconciliation, obviously. And then we're going to go up top to the account reconciliation. And then let's just make sure, let's go to that little options cog to make sure that we're on the right place. We want the current period, or I'm just going to say period two, February. We want to make sure that we're picking up the checking account. So that looks good. So then I'm going to say, okay, reconciliation report. Here's the general ledger amount, receipts, disbursements. There's the amount for the general ledger, the 104, 792. What does that mean? That means that's the amount on the balance sheet as of the end of February. So if we look at the balance sheet, we have the 104, 792, 64 after we made those adjustments. We had to enter those three adjustments, which changed that number from when we started at. So then I'm going to go back on over and say, the amount on the bank is 105, 573, 84. Where does that come from? That comes from the bank statement, 105, 573, 84 as of the same date. What's the difference between those two? Well, that's the reconciliation items. And that includes the outstanding checks here, the outstanding checks. And here's going to be a list of those outstanding checks, which are going to be the reconciliation items between the bank balance and the book balance. That's going to be our reconciliation report. So again, we can check these items and we can check them by seeing if they cleared in March. So we can get assurance on each one of these items. And then once we know exactly what the difference is, then of course, we have more assurance on the actual bank balance that's going to be in our system. So that's going to be it for now. Let's get out of here.