 these out. Now, if I go back on over here, we have our filtering options. So we have some filters in place. Notice that we have the information that nothing in our system after January, it's not showing us the February transactions. That makes sense because we don't want to. So if I select the filter, we can see our filters goes up through January. That makes sense because if we entered something in February, there's no possible way that the bank would would have a transaction before we entered it, they would have to read our minds and enter the transaction first. So there's never going to be a transaction in theory in February, unless there was a date problem in the data input that should have that's going to clear in January, right? There's that that can't happen because so so that means that we can pretty much always have this end date in place as of the date of the reconciliation and not take into consideration transactions happening after the cutoff date. We also have these filters here that allow us to basically focus in on the deposits or the payments. In our case, we're going to be looking at the deposits. You might be able to hide the screen up top, which gives you a squished up look, which is nice so we can kind of zoom in a bit. And then we're just going to tick and tie each of these out. It's always useful to go from the bank statement to the books, because remember, this seems simple, but it actually gets a little confusing. We know that the things on the bank statement have to be on the books. The things on the books don't have to be on the bank statement. Therefore, go from the bank statement to the books, right? So here's 65,000 here. And then here's 65,000 here. Boom. Check those two off. You can see that it increases the deposit amount impacts this difference category. And so then I'm going to go back on over here and I'll highlight this and make it green. I'm going to take this one and say I'm over here. I'm going to make that green. How do I make it green? Boom. I know there's a way. There it is. Okay. So there's that one. And then I'm going to go back on over and say, okay, the next one, I should be going from the bank to the books. The next one is 50,000 on five one. So then I'm going to go over here and say, okay, there's the 50,000. It cleared here on, I'm sorry, five one, one five, I think I got it backwards. Sorry about that. I do that quite often. So here's the 50,000. So we're going to say, all right, there's the 50. Boom. That's done. And then on 757085 on 123. So 757085. That's why I like accounting, by the way. Because if you get things, there's a there's a double injury accounting system that gets solves your backwards problem when you see things backwards 127124 is 20,500. So then we're just going to go 20,500 120 when our books before it cleared the bank. So there it is. So we're going to say, boom. And that's it. All right. So now we can just take that one off. And and so notice what what happened here is we've got everything on our on our bank statement we have found somewhere in our books. However, we have one that of deposit in our books that was in January that is not on the bank statement. So so then the question is that a problem? Well, it's something that we would want to look into clearly. But it possibly isn't a problem because maybe I entered that transaction on our side. And it hasn't cleared the bank yet. How can we solve for that? Well, we can go to our online banking system and basically and just see if it cleared in February. If it cleared in February, then it doesn't mean I'm going to check it off in January. It means that that's an outstanding item as of the code off date of January 31. It's one of the reconciling items. It's just going to be a timing difference. So in that case, we're going to say, Well, that's good. No problem. That's just going to be one of our reconciling differences. Now, if I add these up now, it comes up to our deposits. We have four deposits for 143 7085. That should tie out to what we have here 143 7085. Perfect. Okay, so now also note that the beginning balance isn't working right now. So if I if I was to go back on over here on the first bank reconciliation, this is a deposit. So what we're going to end up doing at the end is just adding that 25,000, which means that our balance here is going to show deposits of 168 7085 instead of a beginning balance plus the deposits, right? And so we could still do that. And that'll be fine. That'll mean that these two will be combined together. But I'll do that in the last bit when we in the last part of this practice problem on the first month, we'll have to adjust for this beginning balance 30,000. So right now I'm going to say, Okay, I got this good. This one is good. The deposit side is good. Then I'm going to do all the decreases, which is usually the most more difficult side. If your deposits are properly being grouped together, the deposits should be easy to reconcile the the outflows usually you're going to have more of them and possibly different formats of them credit cards coming through to the bank from customers versus checks coming through from customers and electronic transfers. So there's a lot more variants oftentimes with the outflows, you're also going to have fees from the bank, you might be withdrawing money outside as well. So that's usually going to have different formats that you'll have to deal with. And so we'll do that and we'll tie out to this number. Once we get those two tied out, then we'll deal with this 30,000 and the 25,000 on our side, recording it as a deposit, but also dealing with these outstanding items, which will include these two checks that have cleared here that we discussed in the prior presentation. So we're going to say so we're going to say that that this looks good for now. I'm going to I'm going to expand this and we did this bit of it next time we're going to move to the payment side of things. If we look at all the transactions, this is what we have thus far. Notice that QuickBooks is great because you can also just say I'm going to save it for later. And so we'll say save for later and we'll continue. We haven't done anything to the balance sheet or the income statement. We haven't recorded any new transactions yet. Sometimes in the bank reconciliation process, you will have to if there's something on the bank side that isn't on your side for the deposits that might be something like interest, for example, they might have interest that you haven't recorded, although you might if you have bank feeds on you probably pick that one up too because the bank feeds will help you to pick up those those items that you're not normally picking up in your accounting system such as interest. But we didn't have to do that this time. Next time we will have that on the on the outflows will have a couple of these items and these two and these two will not show up on our side even though they're on the bank statement and we'll have to deal with that problem possibly making adjusting entries for them.