 QuickBooks Online, 2024, entering beginning balances, customers, vendors, and items overview. Get ready and some coffee because QuickBooks is even quicker to the trigger than QuickDraw McGraw. First, a word from our sponsor. Actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us, but that's okay whatever. Because our merchandise is better than their stupid stuff anyways. Like our crunchy numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunchy numbers with us will make you thin, fit, and healthy or anything. However, it does seem like it worked for her. Just saying. So, you know, subscribe, hit the bell thing, and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our Get Great Guitars 2024 QuickBooks Online sample company file we set up in a prior presentation. Remembering some of the primary goals of the accountant or bookkeeper include number one, creation of financial statements, balance sheet income statement, and related reports. Number two, facilitation, creation, and communication of major financial transactions. We typically enter the financial transactions with the new button up top and using the forms typically broken out by cycle, customer cycle, vendor cycle, employee cycle. We communicate with the customers, vendors, and employees with the centers on the left, the sales center or customer center, expensive center or vendor center, payroll center, or employee center. Before we can get that whole system set up to run smoothly from month to month. However, we have to set up the beginning foundational items, which include the items in the cog that we have been taking a look at. Now we've looked at thus far under the company area, the account and settings. We looked at the users that will be set up to be using and some possible restrictions of users that are accessing the QuickBooks file. And we talked about the desktop app. Now what we want to think about are the beginning balances, which touch on the chart of accounts that we'll have to be dealing with. So let's just go over a quick review of some more of the items in this cog. And that will also touch on some different areas that people might be in when they start a new company file. In other words, are you starting a new company file for a business that's never used accounting systems or softwares before? If that's the case, then we might just start from scratch and go from there. However, usually there's at least some information that has already been started, meaning you already have a checking account before you start the business and you might have done some transactions. And so you at least have to put those transactions into your accounting system, which you might be able to do in that simple case by just connecting the bank feeds. But in other situations, you might have some other accounting system you've been doing by hand or you've been working on some other software, such as QuickBooks desktop possibly or possibly other software. And then the question is, how can I pull in the relevant information into our current system? So we'll answer some of those questions here. So we went through the account settings, we went through the managed users, the custom form styles. So these are things that we have another course or section on if you want to get in that in more detail. They're not really totally necessary usually for the tracking of the data. But those forms you give externally like invoices and sales receipts would be nice if they had a logo on it and that kind of stuff. The chart of accounts is one of the lists. This is one of the major other things we have to think about. We saw that when we started the company file, QuickBooks gave us a chart of accounts, but it's pretty long. It's pretty tedious. It's pretty unspecific in terms of the industry that we are in and the type of business that we have. So that's one of the things we'll talk about this time and going forward. And then we have the payroll settings. We'll talk a little bit more about payroll settings later. Remembering that payroll is a foundational thing. You really have to get right when you start the new company file up. If you had payroll in a prior company file and you're moving it over to this new company file, you want to make sure that you're doing that properly so that the payroll reports are reported properly for an entire year you would like to if possible when changing payroll that you do that at the beginning of the year. So you have an entire year in one system because you have to report things like year to date information as well as the current payroll information to both employees and on the payroll forms the quarterly 941s yearly 940 and the W2s and W3s at the end of the year. So we'll touch on that later. Get the desktop app. We talked about that. It's pretty neat deal. I think their idea with the desktop app is they're trying to pressure people to move when they're small and midsize businesses away from desktop and only have the enterprise with larger companies on the desktop and then the smaller and usually that have a special need like inventory and then other companies moving online. So I think the idea of the desktop is to try to make people feel more comfortable with the transition to an online version because they still have that that desktop key and icon and they can open it from their desktop even though you need internet access to do that. So we looked at that. It's I kind of like it though. Additional information. This gives you your information about your file. So if you were to contact QuickBooks or something like that then you can go in here for that information. It also gives you some keyboard shortcuts if you want to go into there to find your keyboard shortcuts. You've got your lists. So we talked about a little bit about the lists. The chart of accounts is the big one. We'll go into that shortly. You can also find that under the transactions tab and then the products and services is the other big one. You have to have those foundational items set up before you can really do anything from the normal cyclical data input. We've got the payment methods display cash check and other ways you categorize payments you receive from customers. So the default payment methods are pretty good. You might want to take a look at that one but it's not one of the most complex lists that you have to deal with for setting up the startup process. The terms display the list of terms that determine the due dates for payments from customers or payments to suppliers. For example an invoice being net 30. So typically the terms are the default terms are usually pretty good but if you want specific terms then you can go into that list not usually too difficult to set up attachments. So if you want attachments then you have your attachments here. It's basically just going to be placed to house it. So it's already basically set up. If you're using tags then you'd have to set up the tags in a similar way as your class tracking and your location tracking. We have a whole nother course or section on that. If you want to go into there it's kind of a special area same with the custom fields. So those are the lists and if I go in so we'll talk more about the chart of accounts and the products those are the big ones. And then if we go into the tools checks a lot of people are doing online transactions now might not be using checks as much but if you do want to have the checks and print them through QuickBooks you have to order the checks because you still need checks with check numbers on them. You can't just print a check on a blank piece of paper. And then we can import data. So if you wanted to import data possibly from another accounting system. So say you had another accounting system like QuickBooks desktop or possibly some other accounting system and you wanted to get that information into QuickBooks. Now if it was the desktop version then QuickBooks is trying to have an integration system to do that in part because they're trying to move everybody that's a small to mid-sized business from desktop to online. So they have this system here which we might have another course or section on in and of itself to dig into that. But if you have some other accounting system then you might have to do it somewhat manually. How could you do that? Well the common way to do that would be to export all of your lists that you want to include and then import them in here. So that would mean your customer lists your vendor lists your chart of accounts and then your beginning balances. Try to export them, format them in the system that QuickBooks online wants them and then you might be able to import them here. So we'll talk about that in a little bit more detail as we do the setup process. Import desktop data. So if you are on the desktop and you want to transfer your data from the desktop to online, the online version, both the QuickBooks software here's the instructions they currently have. Bring your company file online in three steps. Do it yourself or let us help you with step-by-step guide. Number one, head to QuickBooks desktop. So you're imagining that desktop is what you have had as your prior accounting system which is a completely different software than the online version. Under the company menus select the option to export your company file to QuickBooks online. So company, export, choose what to bring over at this step. You can decide what data to bring over and even choose the QuickBooks online company you want to go to. So in other words, if you want to bring in all of your data, then you can select all of your data and try to import that into the current QuickBooks file that you have set up online or possibly create the QuickBooks file as you do this setup process. However, this is where this is where it gets into the weeds in terms of do you really want to be importing all of your data from the desktop into QuickBooks online. You might not want to do that. Why? Well one, you might have way too much data so you don't need like 20 years of data in the current system. A lot of that old data is obsolete. You might have vendor lists and customer lists that are way too long because you no longer do business with many of them on the lists. And so what you would really like is maybe the last year's worth of data would be great if you can do that and nothing before that. That's a little bit difficult to do however. So if you were to upload all of the data, the plus side of that would be that you can now run comparative reports in QuickBooks online because you have the prior year's data. But the downside is you have all the problems that you imported into your current system and it's going to be more difficult to kind of draw the line going forward and then make things better going forward. You might have errors and stuff like that that you think that you would like to kind of fix going forwards because the setup process for whatever reason might not be perfect the way it was. You might have some issues with your accounts receivable, has some items on them that are still outstanding, that you're trying, that you need to remove or something like that. And so there could be items that you would like to fix. So the other thing you might do is say look I'm just going to start at the current point in time in the new system pulling in similar to the system method up here. I'll pull in all the lists. I'll pull in the customers, the vendors possibly, and I'll clean those lists up. And then I just want to pull in the beginning balances. So by doing that, I will not have the comparative reports capacity and QuickBooks online for prior years prior to the conversion. However, I still have the desktop version of the software to look at prior reports. And in the current system going forward, I don't have all the junk that was in there from the prior years. And I'm not going to bog down my system with all that all that prior stuff and I can try to draw the line and go forward from there. So that's the system that we will work. We're going to imagine that's what we are doing here. We're going to pull in the beginning balances and go forward. Now when you do that, you would like to start at the beginning of the year. You don't want to really pull in your balances by the middle of the year. What if it is the middle of the year, what would you do? Well then you might still pull in your balances as of January 1st or the end of December of the prior year if you're in a calendar year and then try to try to mimic or mirror the data possibly with the use of the bank feeds entering it twice so that you have you're running it in in unison to accounting softwares up until the current date. And then from that point forward, then you're going all online and abandoning the other one. Okay, review what came over. So once your company file exports all you'll get an email. All you have to do is come back to QuickBooks online and review it. So that's the process if you have a desktop. Now, alternatively, you can use the online migration tool. Why might you use the online migration tool? This looks like a pretty easy process. Well, maybe you don't have the latest version of QuickBooks desktop and you're using a prior version and you don't want to have to buy the latest version of QuickBooks desktop just so you can then convert it to QuickBooks online, right? So in that case, you might have to to upload your file into the manager tool over here, because you would think from QuickBooks standpoint, they would say, Hey, we're trying to get everybody on our software, of course, and number one and number two, we in order to do that, it would seem unreasonable to make people pay like $600 to upgrade their software, just so they can then pay another monthly fee to transfer to the online system. So it would seem reasonable for them to have a system where they can take the prior company files, upload it to them, and maybe they can help you manage the transfer to the online, which is what they're trying to get everyone to do. All right, let's hit the drop down again. So that's the the import data export data. So if you wanted to export your data, this is one way that you might want to like a hard copy backup file, you can export all your data, although QuickBooks has all of your data on a server that should be pretty secure. But some people like doing that reconciliation, these are bank reconciliation. I don't really think they should be here because we would usually go to the bank wrecks on the left hand side as a monthly process, not as a setup tool budgeting. Again, we'll see that over on the left hand side. So I don't think it would really, it should be something in the tools really here audit log gives us a log of what we have done. The smart look gives you kind of a help review, which might allow you to get online access to a QuickBooks helper. And it allows you to share your screen with them so that you might be able to communicate with someone if you have a problem with a shared screen, which is not so you might use that that might be a tool that's not always used just as a setup process. But if you need help and same with the resolution center and then in the profile, you've got the subscriptions and billings, that's your billing information, which used to be under accounting and settings feedback privacy, switch companies. Now if you wanted the desktop version that we looked at before had a nice toggle tool, if you have multiple company files, this one to switch company, it's got to log you out basically and then log you back in. It's a little bit more long and tedious of a process. Alright, so what we're going to do is we're going to imagine we have a prior accounting system, and we want to pull it into our current system. So to do that, we might first look at our chart of accounts over here. So if I went into my chart of accounts, and that's going to be in the transactions, and then the chart of accounts on the right hand side, I think that's the most common way to get into it. So we mentioned before that when we set up the new company file, even though we didn't pull any data into it, QuickBooks gives us a chart of accounts, which is nice. But the chart of accounts is not at all very customized based on what we gave it the information for, including what industry we are in, and the type of entity we are. So proprietorship versus corporation partnership. So it's a pretty generic chart of accounts, which is fine. But you're probably going to need to trim it down one way or the other. Now if you were starting a new company file from scratch, then there's two ways you might do that. You might think, okay, I'm just going to keep their, this would be the easiest way, the safest way. I'm going to keep their chart of accounts possibly. And then I'm going to do data input for at least a few months and try to try my best to conform to the chart of accounts that has been given to me. Now for many small businesses, you're not going to have a whole lot of stuff on the balance sheet, right? The balance sheet accounts, you might not have a whole lot of stuff up here other than the cash and maybe accounts receivable, and so on. You might have some of these, but they have more accounts up here than you might use because most of the things that you're going to do are your business transactions, and you'll have your income accounts down below, which you only have a couple of usually, and then your expense accounts. The longest list of accounts will typically be expense type of accounts. So what you do is as you enter the transactions, possibly with the use of the bank feeds, you're going to assign the transactions to an account. To do that, you'll have to go over here or look at the dropdown as you enter transactions such as check form, bill forms, and expense forms, and find, see if there's an account that conforms to what you think is best, such as the telephone bill going to the telephone list. And remember, there's more of a list over here and so on over here. Now, if you do not find something that you think is appropriate for you, such as they put it under the telephone, and maybe you want to put it under utilities or something like that, then like for here, for example, they put utilities and put disposal waste, electricity, heating, internet, and so on, all of this stuff under there. So maybe maybe you want the telephone under here as a subcategory or possibly you don't need all of this other stuff. Maybe maybe here's the phone right here. Maybe you want to call it telephone instead of phone. So in that case, you can edit this and then change the name of it. What you don't typically want to do is add another account called telephone when you already have one called phone, because that'll lead you possibly to post to two accounts. And now you're going to be posting the two accounts that won't be consistent. So that's what you want to be careful of. So you're going to look for the account, if the account's appropriate, use it. If the account isn't appropriate, or you think it could be a better, like naming it telephone instead of phone, because you like that better, then change the name. And then only if you don't have an account, do you add another account. And then after a month of data input, you can go into this chart of accounts, look at all the accounts that you have not used by comparing it to an income statement, which has all the accounts that you have used on it, and then possibly make the ones you don't want to use inactive. And that way you don't end up with this long chart of accounts, which makes your data input a lot more difficult, because every time you're trying to assign something to an account, you've got all these accounts there when you're only using a fraction of those accounts. That's one method. Another method is you could go in here and say, hey, look, I want to build it from scratch with my own accounts, which is something that we'll do when we get into the bank feed section more. And you might go into all of these accounts and try to make all of them inactive from the start. And then you actually create your accounts as you enter transactions, such as with the bank feeds, and that'll make your accounts more custom, and it'll have less accounts from the start. Another variance of that is you might keep all of the balance sheet accounts, because maybe you're skeptical that you might need some of the balance sheet accounts in the future, and just make all of the expense accounts inactive and start your expense accounts because you feel comfortable with your expenses, because you know your vendors and how to record expenses as they come through the bank feeds. So if you do that, then that's probably the quickest way to kind of customize your system if you have a pretty simple kind of system. Now, if you're pulling information in from another company file, then if I was to import it from the desktop, it would overwrite my chart of accounts with whatever is being pulled in from the desktop if I did that with an automated system. Or if I want to import my information, then I could basically try to import a whole new general ledger. So if I went up top, we saw there was import under the cog or here, we've got the import function so we can import the items this way as well. So you can import 249 accounts. First time importing your chart of accounts, all your chart of account information must be in one file. The top row of your file must contain a header and title so you can save it and you can look at basically the import function. Now with our case, we don't have that many actual accounts over here. So I'm just going to basically add the accounts from our prior year balances. So let's just give a quick overview of how this might work. Whatever your prior accounting system is, you'll have your financial statements that have been created from it. The idea is that I'm going to have the cut off from the prior system be the end of 2023. That's where my prior accounting system ends. And that's where I'm going to move into my current accounting system. So the way to do that is I want to pull in then the ending balances as of my prior accounting system period end, which is really just the balance sheet, because the income statement will start over in January of 2023. So this is basically a trial balance, which you might call a closing trial balance or a closed trial balance, which doesn't have anything after the balance sheet accounts because the income statement rolled into equity. And therefore we don't have anything in income yet, because we're going to record the income for the current period, like we would if we reset the odometer on a car. That's how the accounting system works. The income statement statement resets. We're going to reset the income statement for the current year 2024 at zeros and move from there. That means all you really have to do is enter the balance sheet information into your accounting system to at least get the beginning balances in place. And then as we enter more expenses going forward, we might actually again want to start a new chart of accounts, we might be able to clean up our chart of accounts and make it a little a little bit better. That might be one of our goals as we move to a new accounting system, which could make it a little bit difficult for comparison purposes to the prior accounting system. But if we can make a better chart of accounts, that might be a good way to go. But in any case, that's going to be the idea. So we're going to take this chart of accounts from our prior accounting system as of the end of the final year. It's in balance. You can see here by the double entry accounting system because it's a it's a trial balance. But you can also see it with the accounting equation assets equal liabilities plus equity. In other words, the assets are the checking account 25,000 plus the accounts receivable 25 plus the two eight nine six minus the contra asset of 7500 plus the 7500 and that's 115896. And then the liabilities and equities are 1500 plus 1000 plus 2200 plus 77896 115896. So the assets from the checking account down to furniture and equipment. This is a contra asset account. So it's a negative equals the liabilities from here and the equity down to the owner's equity. So it's in balance, right? So so then all we have to do is enter this into our current accounting system. There's our beginning balances and we can move from there going forward into the current period. Easy. How could we do that? Well, if you took accounting textbook classes at a school or something, you might say, hey, look, this just is this is just a journal entry. This is just a big journal entry depots and credits. I can just go into QuickBooks over here. And I can just go boom, enter a form, enter a journal entry. And I can just enter the whole balance sheet as a journal entry one big journal entry call it my beginning balances as of the end of the last year 1231 23. And that's it. Well, you can do that. But it's not going to be perfect. You can't really do that perfectly. That's the what's the problem? Why can't I do that? Well, the problem is that each of these accounts might have their own specific needs. And QuickBooks might have some restrictions to do that. So that's not usually the way that you want to do it. Okay, let's talk about that a little bit more in detail. And then we'll go into the method that we will use, which will basically be the same thing. But it'll help us to get the sub ledgers in there. So number one checking account. Well, with the checking account, you might be connecting it to the bank. So you have that issue. And you also have an issue with outstanding checks that could possibly be in there that will have to deal with when we do the bank reconciliations. So that's where you have an issue with that one, although you could do just a journal entry. And that would be fine. And then deal with that the issues. But we probably want to put it in place with like a deposit, which is what's going to happen because the deposit form is the form the increase of checking account accounts receivable, though surely has a problem. Because if I just enter it in with a journal entry, QuickBooks won't even let me do that without assigning it to a customer. And if I assign a journal entry to a customer, then the problem is that I won't be able to record the receipt of the payment from the customer because it's in form of a journal entry. And even if it was just one customer that had that I can't really tie out the payment to a journal entry, I have to tie up the payment to an invoice. So number one, I have to put this in there basically as invoices. So I can collect on the invoices and properly apply the payments to the invoices. And number two, this 25,000, 20,500 might be from multiple different customers. So I not only need the 20,500, I need the sub ledger broken out by customer. So I can collect on that from the people that owe us the money. So that's why we have so we'll do that. We'll get into that. And then the inventory, if we're tracking inventory on a perpetual inventory system within QuickBooks, then I can't just enter 2008 96 as a journal entry, because I won't have the sub ledger, which has given us the information by item, I have to actually list out all the items in QuickBooks and give the information. Now this is also a point of problem with regards to moving from the desktop to the online version sometimes because the desktop version, I believe uses a first in first out, I know it uses a weighted average flow assumption. And I believe QuickBooks online uses a first in first out flow assumption. So that even if you use the desktop integration inventory might be one of the areas where QuickBooks has a glitch, has a problem due to the fact that it uses two different flow assumptions. I think the first both the flow assumptions are fine. I like the first and first out better personally. I don't know why it just seems better to me, but but in any case, they're different. So that's an issue. And then we've got the furniture and equipment. These are the fixed assets. It typically has a sub ledger as well. But oftentimes, the sub ledger might be kept not within QuickBooks, but rather in external software because in the United States, we have to have a sub ledger on the tax return for this kind of information. And if you're doing the sub ledger in external software, you might as well do it on a tax basis as well as a book basis. So you might be able to enter that with a journal entry and be okay. Same with the accumulated depreciation. There's a sub ledger related to it, but it's something that might be managed outside in like tax software. And then the accounts payable. You can't just enter that with a journal entry for a similar reason as with the accounts receivable because number one, if you enter it as a journal entry, then it's going to be difficult to pay off the transaction. You owe 15,000. When I pay it with a pay bill form, I can't tie the pay bill form to the bill because it should be a bill that I tied out to a number two. If that 15,000 was made up of multiple vendors we owe money to, I need a sub ledger of who we owe the money to so I can pay the people that we owe the money to. The visa is pretty straightforward. We can add it, but like the checking account, you might be using bank feeds with the visa account, which has its own special kind of issues. The loan payable, usually something you could most likely enter with just a journal entry on the loan payable. We would want to tie that to amortization tables and whatnot, but that would be pretty straightforward. And then the owner's equity, typically something that you could possibly just enter with a journal entry for that one and you would be fine. But that's the problem. I can't just enter one journal entry because each of these accounts has its own kind of specific needs. We try to add all of the accounts or most of the accounts that have their own special needs in this little problem here so that we can look at each of them. So what's the strategy that we can use? Instead of just doing one big journal entry, we will enter one account at a time. Now, when I do that, each time I enter an account, two things are affected because that's the way the double entry accounting system works. If I enter the checking account of $25,000, then I have to enter a credit somewhere else. Where's the credit going to go if I just do it one at a time? Well, it's going to go into equity one way or the other, right? If I enter a deposit into the checking account, I can credit either an equity account, they're going to put it into opening balance equity oftentimes, or I can credit income if I want to. Now, notice that income isn't exactly appropriate, but if I credit the income as of the prior year, December 31, 2023, it's still just going to roll into equity. So not a problem. One way or the other, the other side is going to go into equity. Accounts receivable. What's going to happen if I enter $20,500 as a debit? The credit's going to have to go somewhere. Well, I'm going to enter it by customer $20,500 and the credit entered most likely with an invoice is probably going to be going to income, but the income is as of 2023 the way we are doing it. Therefore, it'll roll into the equity as our beginning point. So once again, the other side will be an equity inventory. Same thing. We'll enter the debit to inventory. The credit will be an adjustment which might go to the income statement, but we'll ultimately roll into equity. The accumulated depreciation, furniture and equipment, the other side will most likely go into equity. It'll go into equity somehow, maybe the beginning balance, opening balance. Accounts payable. Usually we enter accounts payable possibly with a bill form. The other side you would think would be an expense on the income statement in the prior period, but it will roll into equity as of January 1st, 2024 our starting point. The Visa account, same ideas, same with the loan account. So in the equity section after we're done, we might have three things in equity, right? We might have opening balance equity. We might have the owner's equity, which they're currently calling retained earnings, which we might want to change the name if it was a sole proprietor to like opening balance if it was a partnership to a capital account. And we might have the net income from the prior year, 2023. However, when I then go into the current year, 2024, whatever was in net income will simply just roll into the retained earnings or owner's equity. So that problem is solved. Whether it goes into the income statement, or whether it goes into the retained earnings or owner's equity, as long as it happened in the prior year, it will end up where we want it, owner's equity and retained earnings. And the opening balance, whatever is in that, that is an account you do not want to keep. It looks ugly. It looks unprofessional. It's a plug account by definition. So you don't really want anything in that account, but it's nice that QuickBooks uses it to tell you, hey, we set up some stuff and we just put the other side into equity. That's what we did. We just want to notify you of that. Great. So now we'll just do a journal entry taking whatever's in equity and putting it into opening balance equity and we'll put it into owner's equity or retained earnings. And that way we will end up with our 77896. In other words, if I put the 25,000 debit here and the other side goes to equity, the 25,000 here, the 25,500 here, the 2896 goes into a debit here, the other side goes into equity, we credit the 7,500, the debit goes into equity, we debit the 75,000, the credit goes into equity, right? The other side is in equity, even though we did it one journal entry at a time and we will end up with an ending balance of 77896, which is what we want. Even though we didn't do it with one big journal entry, we did it one account at a time. It has to work and that's what I want you to kind of convince yourself of. It can be kind of scary to do this. So you just convince yourself it has to work. Once all these balances are correct, the difference has to be in equity and then we'll just fix equity. Now one last note on the equity, fixing equity. Like if you're sole proprietorship, you're only going to have one account called equity and then QuickBooks will dump net income in there, which isn't really account. It rolls into retained earnings. If you're a partnership, equity is more complicated because then you're going to have to track your equity accounts per partner. There might be like five partners, however many partners there are. And that means that once you get your equity into one account, this equity represents the book value, assets minus liabilities that is owned by the owner in essence. Now you can think of the owner as though they were just one person, even though you might have a partnership or a corporation. That is the amount that the owner has claimed to over the assets of the company as opposed to third party liabilities. And then if it's a partnership, you have to break that ownership out in accordance to their capital accounts, which will be managed in accordance to the partnership agreement, which is actually more complicated oftentimes than doing the bookkeeping for a corporation. Because if it was a corporation, you would have simply retained earnings. And then you might have the common stock, the point of the corporation being that you can have multiple people that own the corporation, but instead of managing each individual's account, you're just going to break the retained earnings or the equity section in essence into equal shares. That's what the shares are. They're all the same. It's like having dollar bills. And then you manage who owns what by who has more of the dollar bill proportions to the other people, more shares versus the other people. Therefore, the bookkeeping is pretty straightforward. Then we would take it out of opening balance equity and we would split it between whatever accounts are there that are for the corporation, which would include at minimum retained earnings, the accumulation of revenue that has not yet been distributed in the form of dividends, and the capital account, which is in essence the investment of the owners in the business that happened through the issuance, the original issuance of the stock. Okay, that's the general idea. So we'll get into these one account at a time in future presentations and address the special needs and sub ledgers related to them.