 Here we are in our QuickBooks test company file. We started up in a prior presentation. Remember that we are in the accounting view as opposed to the business view. You can toggle between the two views by going to the cog up top, switch the view down below. We're gonna duplicate some tabs to put reports in like we do every time. Right click the tab up top to duplicate it. As that's thinking, right click again, duplicate the tab again. Back to the tab to the middle. Reports on the left hand side, opening up the balance sheet, which is in the favorites, changing the name or the range 010125 to 123125. I would like to see this one by class, even though we only have one class that we worked on in a prior presentation, we turned on class tracking in a prior presentation and that gives us this breakout, not too much detail from the balance sheet side, although it might give us more detail in this practice problem on the balance sheet side. Next tab, I'm gonna open up the reports. This time the profit and loss report. And this time I'm just gonna open it for the last few months from 070125 to 123125 and run that by month. So we can see what the last practice problem did. And then I'll run that and there's our income statement by month of transactions. And we have this issue with the timing not exactly lining up on like a percentage of completion type of system. And that's what we wanna be thinking about this time. So what we're gonna do this time is we'll create basically a system where we'll try to line that up. Let's first enter the estimate again. So I'm gonna go into Excel and kind of think about how we might put this together from an estimate if we're putting a project together and then we'll go through a similar kind of process to tie all this together. So in an Excel worksheet, I'm gonna format the Excel sheet by clicking here. Now by the way, if you have this sheet, then it'll have an example tab, a practice tab and a blank tab to help you work through it and we'll just build it on the blank tab. If you don't have it, that's okay because we'll just build it from the blank tab anyways. So I'm gonna right click on this tab and we will format the cells. I'm gonna make it currency bracketed and then I'm gonna say no decimals. That's usually my starting point on the formatting. And then let's say we're gonna make our estimate. So a job, let's say this is job two estimate that we might actually do in Excel. We might do this estimate in Excel so that we can then populate it into say QuickBooks, right? So I'm gonna say, all right, let's then say that we went through our estimate if it was a complex type of estimate but we'll simplify it here and just say that our three buckets of expenses are usually gonna be materials and then the labor and then the overhead. So let's say that of those items, we think it's gonna be 40,000 for the materials, labor, let's say 30,000 that we think is gonna be a labor and then the overhead, let's say we think is gonna be 923 or something like that when we put our estimate together. If I sum this up, we're gonna get to 76, let's say this one's actually gonna be 6,923, 6,923, which sums up to 76,923. So that'll be our total cost and then we're gonna have the markup that I'm gonna say is a 30% markup. So whatever the cost is, we're gonna mark it up 30%. This is a general convention. You can, again, it would depend on what your billing structure is but this is the concept that I'm gonna be using here. So we'll mark it up 30% and so we're gonna say, this will be the markup percent and then this will be the markup amount which will be equal to the 76,923 times 30%. So now I'm gonna say the total charge estimate is gonna be equal to the cost plus the markup which would be 100,000 which we're trying to get to that nice even 100,000. So that's gonna be our kind of baseline starting numbers. I'm gonna make this bracketed and this is gonna be the bottom line. Now, once we have that estimate, we might tell the client, hey, look, we're gonna bill you based on this estimate. So we might then say, okay, our billing structure, I'm gonna make this a skinny column. We'll look something like this. The billing schedule for this job is gonna be, I'll make this black and white is gonna be, I'll say month one and then month two, month three, month two, month three, month four and month five. And I'm just gonna, I'm just making up the billing structure and like how would we make up the billing structure? We'd probably tie it to the materials we need if it was a construction type of contract. But, and we might have our first amount that I'm gonna charge is just gonna, I'm just gonna say 10,000 because I'm gonna assume we need 10,000 down to buy the stuff we need to start with this more longer term project. And month two, I'm gonna say, we're not gonna bill in month two because that's when we'll start the project possibly, but we actually got the deposit in month one. So we got kind of like a prepayment of it. And then in month three, I'm just gonna make up a billing structure of 25,000, 30,000 in month four, 35,000 in month five for a total of 100,000.