 on our books and it's not on the bank statement, then it's most likely the fact that there's an outstanding item, meaning an outstanding deposit or an outstanding check. So what we'll do is we'll just go through here and check everything off and see what happens first, going from the bank statement to the books. As we do it, just gonna highlight everything as we go. So here we have the deposit here of 50,000. I see that 50,000 here in the books. So I'm gonna highlight that. I'm gonna right click that. I'm gonna make it, let's make it green. We've found that. There's the 50,000 there. I'm gonna highlight this. There's the 50,000 there. Note it might not always be in order. We see the 65 before that 50 here. That's because it might have taken different times to deposit in the bank, meaning we may have deposited one electronically, while we deposited the other one by going to the bank and putting it into the ATM machine or something like that. And if that's the case, it might take the bank a different amount of time to process the checks. So the dates that the bank have will always be later than the book dates because we recorded it at the time that we made the deposit. The bank is gonna have to take a little bit of time in order to process the deposit. Then we have the 65,000 here. We see the 65,000 there. So we're just gonna check that off or highlight it and say, yep, we found that there. We found that here. Looks good. And then we have the 628 here. This is a deposit. So I'm just gonna highlight that. I see that here. I see that here. The 628 looks good. Then we see the 20,000 here and the 20,000 there. Looks good. Note we also see a thing that's a little bit tricky is we have a zero in the beginning balance here. And really the beginning balance is that 25,000 because this was our first month of operations. So that can be tricky in the first bank reconciliation to get that beginning balance right. We're gonna have to enter it in the data in some way. But here's the beginning balance on the books. And we're basically just gonna tie that out as well. So here's our beginning balance there. We have it there and we have it here. So when we go to record our reconciliation, we will be using the 25,000 as the beginning balance. Looking through the checks, we have this check. If we had more detail on the books, we would also have the check number and the date. On our books here, we don't have as much detail because we are limited on space and don't wanna make the thing look too intimidating. So we removed some of the detail. But just remember that these dates on the bank statement aren't something that we can tie out exactly to our books. Our books will always be the date prior to when they cleared the bank. But the check number will always be the same or should be and so should the amounts. So those are the two things we can use to tie these items out. So here's the 12,000 there, we got that. Here it is on our books. Here's the 16, check 102, here it is there. Here it is on our books. I'm just right clicking and highlighting these as we go. And I know this is tedious. This is actually the way this stuff is done here. And then here's the 7,000. We're gonna say there's the 7,000. Here it is on our books. We're just checking these off, just highlighting these. There's the 400, check. Here's the 400 on our books. Check that off. Here's the 598 on the bank statement. Here's the 598 on the books. And then we have the 620. Now, once again, it would skipped a little bit. So we're gonna say, okay, but I still see that 620 here. There's the 620 there. And here's the 15,000 here. And here's the 15,000 there. So I had to skip around a little bit, note, to get these. And we didn't see them all line up perfectly. There's some numbers in between haven't found. And then we're looking for this 80,000 withdrawal. And we don't see that here. So this and this 15, I don't see that on the books. So these two items are on the bank statement, not on the books. I'm gonna make those yellow. Say we're gonna have, those are the differing items. These are something we're gonna have to deal with. We're gonna have to reconcile. And then on our books, if we look on our books and go the other way, just to double check everything, I say, hmm, I didn't check off this green item. Do I see that over here? We're gonna say, no, it's not over there. It's not in the deposits. So I'm gonna highlight that and say, that's a reconciling item. I'm gonna have to do something with that. Same with this 11,000. I don't see it in any of the checks. So I'm gonna have to do something with that. This 500, I don't see it over here at all. So we'll have to do something with that as well. This 320, 360, we don't see over here. So we'll have to do something with that. And then same with these two here. They're not over here on the bank statement. So that's what we have here. Now, when we look at these, we might say, hmm, these must all be errors that happen here. But note that they're not gonna typically be errors on one, on this side, because we're saying that this deposit happened probably at the end of the month. And therefore it may not have cleared the bank yet. And the same with these checks. These checks could be outstanding for a pretty good amount of time, because the check has to go to the mail and then the other person has to get it and then they have to deposit it. And then the bank has to talk to the other bank in order to know that the deposit was cleared before we get it. So even if we wrote the check sometime in January, it's very clear, it's very likely that it doesn't clear the bank till sometime in February. So those are gonna be our reconciling items then. We're gonna say that we expect that there's gonna be some outstanding checks here. And we're just gonna, if we can reconcile exactly what those are, then we can double check that all other items that we have recorded here are correct and have been verified by an outside third party and a very dependable one, the bank. So what we're gonna do is we're gonna do a bank reconciliation. So here's the bank reconciliation. And typically in a textbook, we have two sides to it. We're gonna have the bank balance and the book balance. And we will adjust them. In the bank reconciliation on QuickBooks, we didn't really have two sides. And on most softwares you wouldn't, you really only have kind of the bank reconciliation, which is one side. And the reason is because everything that we're gonna adjust on the books, we're just gonna make an adjustment for it. We're actually gonna fix. So after we fixed it, we will only be left with the bank balance side of the bank reconciliation. So that'll make more sense in a second. Let's go through the bank reconciliation process. What we'll first do is we'll start off with the bank balance. And so as of the end of the month, not the beginning of the month, the end of the month, here's the bank balance, 109-415. So we're gonna put that here. This is the 109-415. And we're gonna compare that to our books. The ending balance on our books is way down here, the 94-437. So that's gonna be our beginning book balance. So we're gonna say that that's 94-437, our beginning book balance. And obviously these are both as of the same date and they don't match. And they're never gonna match because there's almost always gonna be some kind of outstanding item typically. So what we're gonna do is just go through these items and say is it the bank's problem fault or is it the book's fault? And put the reconciliation item in the correct area. So if we do that, we're gonna say if we look at the bank statement first and say this 80 and this 15, these are amounts on the bank statement, not on our books. So this probably happened, maybe we made a withdrawal from an ATM or something like that and we didn't record it. And the bank service charges, of course, we just don't see those until we get the bank statement and then we have the bank service charges. These are items that we're gonna say the bank is not wrong on this or at least those are things we're gonna...