 Here we are in our QuickBooks Online test company file. We started up in a prior presentation. We also have open in and incognito window, the free sample company file. If you want the two open at the same time, we suggest using incognito window, which you can open if using Google Chrome by selecting three dots in the browser, new incognito window, typing into the search engine, QuickBooks Online test drive, looking for the result that has Intuit.com in the URL, Intuit being the owner of QuickBooks. The sample company being useful, allowing you to enter data into the sample company to test without having to put that into our test company file on the left hand side. And it allows us to look at the differences between the accounting view, the one that our test company file is in and the accounting view, the one that the sample company is in. If you want to be toggling back and forth between those two views, you could go to the cog up top and then switch the view down below. Now I'm also going to be opening up a few tabs to put our financial statement reports in now that we have data in them. I generally do this every time I right click up top, duplicate the tab so that we can open one of the favorites and then I'm going to right click on it again, duplicate it again. I would like to open up the balance sheet and the income statement. Back to the tab to the left reports on the left hand side. And then I'm going to go to the balance sheet. And then I'm going to put this from let's say 070125 to 123125 running it. And then on the right hand side, I'm going to go to the reports again. This time the income statement or profit and loss report, close the hand boogie change the range 070125 to 123125. I would like to see this by month. So I'm going to break it out by month and then run it. By the way, if you're in the business view, the reports are located in the business overview on the left hand side and then the reports on the left hand side balance sheet and the profit and loss reports located there. So last time we said that we have our project that we set up. We made an estimate for the $100,000 project. And then we basically sent out the prepayment that we used the process billing for at the 10% or $10,000, even though we hadn't done any work at that point in time. So now we're going to continue with this process and we're just going to be billing as we scheduled as we told the client that we're going to be billing. And we're going to be recognizing the costs on the job as the costs to the job come up. And we're not going to worry about the revenue recognition kind of a disconnect type of thing between the two, although we'll point it out and then we'll in a second presentation we'll get into some more detail on what we might do to remedy that situation. All right, so let's go back on over. We're going to say, okay, I'm going to go back to the first tab and we've been working within our projects over here. So we set up our project number one. Let's go into project number one. And then let's pretend that our first or our second month has happened. So we're going to say in month two, that's when the job actually starts. And we're going to say that let's not highlight this side. We're going to say that we have 13 18 in actual costs. So let's put those into the system. So we're going to say or it normally that would be like an expense type of form that we would be paying for stuff. Usually we would have multiple expense forms that we would be paying to multiple vendors that would basically be grouped or categorized under our main buckets when we have a project or job of overhead materials and labor. But I'm just going to kind of group it into one. I'm going to make a generic vendor that's who we're paying. And I'm going to say that the payment account. I don't have my cash account set up. So I'm going to set up a cash account. So if you don't have a cash account here, I'm going to say add account. And this is going to be a bank account. And I'm going to make it my checking account. So I'm just going to call it checking. And then I might just put like the last four digits of the checking account number or something like that. If I had multiple accounts for internal accounting purposes, but I'll keep it at that. So I'm going to then save it. So there's our payment account. I'm going to put say that this happened on the second month. So I'm going to say 081525 because we're working in 2025. I'm not going to put a tag. I'll put project one on all of them to track the tags. And then I'm going to say that we could do it by category now. And this would assign the expense to a category, which if it was for a project, you would expect it to be going to like a cost of goods sold category or a work in process kind of category. But oftentimes we assign them by items because the items can help us to assign things out, help us to purchase things like the material and possibly allow us to pull the items over to an invoice if we're using that billable component. So we've already set up the items. I'm going to put in the generic items of materials. Now remember, normally you would have multiple kinds of materials you might be purchasing that would then be going to the account of materials as a general bucket of expenses, which would be a cost of goods sold type of account or something like that. But I'm going to group it into the generic bucket of materials. I'm just going to make three items that add up to that 13 amount. So let's say that this was $6,000. I'm not going to make it billable. So I'm not going to make it billable. This customer job would be there if we made it billable. But I'm not going to. This time we'll see that later. I will assign a class to it, allowing me to break out the income statement by class, which is nice. And then I'm going to say that we want labor. This is another item that we set up, which will be basically going to the cost of goods sold account for the labor. I'll make this at $4,000. I'm not going to make it billable. Therefore, we don't need a customer or project. We'll talk about that later. This also going to job number one. And then I'm going to say overhead, which is the item we set up before, the three main buckets. And I'm going to say that this is going to be for the difference, which is $3,018. So $3,018. Not going to make it billable. Also going to job or class number one. So the total adds up to the $13,18. This is an expense form, decreasing the checking account. The other side being assigned by these items, which are going to basically going to go to cost of goods sold. So I'm going to say, all right, let's save it and close it and check it out. So now we have the costs assigned to our project in our project summary over here, net profit. So basically a little income statement within our project, which is great for that individual project. But I would also often like to see the projects kind of together or an income statement broken out kind of by project. So I could then go up here and say, let's look at my balance sheet. I'm going to run it again. Notice if I could hit the total here and run this by classes. And it gives me a breakout of the class over here, but not all the balance sheet accounts will be broken out by class. Right now we just have basically the net income that's being broke out by class. So then if I go over here and then I say, run this again. So now we didn't recognize revenue, but we have the expense, which is now being happened, the expense happened in August. And we just assigned it to cost of goods sold because these are going to be expenses for the job. Now notice if you're doing a percentage of completion type of thing, or you might put the traditionally, you would put the costs into like work in process on the balance sheet and then expense them. But if we're doing a percentage of completion, we might basically expense them as they happen and then recognize kind of a percentage of the revenue. Also you might break out the cost of goods sold through multiple categories of cost of goods sold, cost of goods sold for labor, cost of goods sold for overhead, cost of goods sold for materials. But we're just going to group everything into cost of goods sold here. So there's going to be our revenue that has been recognized.