 Okay, so we've been focusing in on the credit card. We've got our two bank feeds set up the credit card and the checking account We entered the information for the credit card So we might as well kind of finish it out round it out where we left off is this beginning balance issue So when we entered the data from the credit card, it looks much the same as the checking account Except that when we pay for things with a credit card instead of decreasing the checking account We have an increase to the credit card account and then we're going to pay off the credit card account with Money that's transferred from the checking account now when we first put the credit card in place We have that same kind of issue if I go to the balance sheet as we do with the checking account Meaning if I didn't just start the credit card from this point in time Then I might have a beginning balance that's rolling forward from a prior period and I just want to enter like that Beginning balance. I have to enter the beginning balance to be back In balance and then I can move forward from there I would call that like the first kind of a bank reconciliation kind of situation We'll have a similar situation with the checking account with the first bank reconciliation It's usually more complex or could be with the checking account if you're using the bank feeds Not if you're not constructing your books with the bank feeds, especially if you're writing checks For example, it's likely that you're gonna have outstanding checks and deposits that you might have to deal with on the checking account side whereas with the credit card people often don't even do the bank reconciliation in part because You're basically constructing your books from the bank or the financial institution with regards to the credit card So for example, if I go back on over to my flu chart Remember that when we talked about the checking account We talked about the vendor side where at the end of the day cash usually goes down or a credit card goes up however We're paying for it for goods and services that we're purchasing and many small businesses whether they're using a credit card or whether They're using the bank can set this side of the system up Not only on a cash-based system, but on one where they're reliant on the bank feeds They pay for everything with an electronic transfer or with the credit card and that means utility bills phone bills, you know whatever monthly supplies and Then they wait till that clears the bank and record it with the use of the bank with the information from the bank instead of Recording it as the transaction happens and that works quite well with those kind of electronic transfers Obviously if you're using a credit card, then it works quite well the same way You're gonna pay everything electronically So you might just wait till it clears the financial institution and record the transactions from the financial institution credit card feeds bank feeds I But on the checking account on the customer side of things we saw that the deposits are not so easy Sometimes depending on the industry because you might have to have a cash register situation Where you can't just wait till something clears the bank or you might have to invoice which has an accrual component on the vendor side As the business gets larger then you might have to enter accounts payable Which kind of messes things up with regards to the bank feeds, but with the credit cards We don't have any deposit side really because all we're using the credit card for are the vendor cycle types of things for the payments And then we're gonna pay off the credit card Therefore many small businesses most will will just use the bank feeds to record everything and that means the bank Reconciliation is very easy like you could still do the bank reconciliation but There's not gonna be a difference between What's on your books and the credit card and what's on the financial institution statement at any given time Because it's not like you're entering the data and then verifying it to the financial institution You're entering the data from the financial institution So that means that you can kind of not even do the Reconciliations in that case because if this balance ties out you should be good But I still recommend doing them because if this balance ever doesn't tie out then you're gonna be like well What do I do now? I will the answer to that is you reconcile. That's how you figure out what the difference is So you could run into situations where you were somehow you got two transactions that were imported from the credit card So you doubled up or you missed some transactions for whatever reasons possibly there was a shut down on the bank feed data For whatever reason you're gonna have to figure that out. How do you figure that out? Well, that's the bank reconciliation or credit card reconciliation. So if you're if you're Reconciling everything is tying out. You might as well do the reconciliation because it'll be really easy to do and it'll give you that double Verification and help you verify and with this beginning balance issue It'll kind of demonstrate that beginning balance problem So I'm gonna imagine like this is our credit card statement, which is I set up just like a bank statement, right? So it's gonna have a beginning balance. Here's where the problem is. We had a beginning balance That that we didn't put that on the book So that's gonna be a difference and then all we had for the first month I think was this one payment that was in place and no other charges So this is gonna be the activity. This is the ending balance. The point is the ending balance Doesn't match what we have on our books as of this point in time So I'm gonna go back on over and say, okay, we've got to fix that I'm gonna go to the reconciled just so we can kind of see that reconciliations are Down on the accounting on the left-hand side. You might have to