 In this presentation, we will start the bank reconciliation for the second month of operations, this time focusing in on the beginning balance, the objective and the deposit side of things. Time to engage with Sage 50 cloud accounting. Here we are in our get great guitars file. We're going to start off by opening up our financial statements. So we're going to go to the reports up top, we're going to be opening up those financial statement reports this time, taking a look at the balance sheet, opening up that balance sheet first report. We're going to be looking at the second month, which is going to be February now, month two. So that's what we're on. So I'm going to say, okay, that's what I'm on at least. And then so you, so we're going to go down here to the check it account now at the 105 30 601 as of the end of February, February 29, 2020, if we go to the bank statement then for February, we see the ending balance here at the 105 5 73 84. So once again, those two items are different as of the same point in time. Therefore we're going to need to reconcile the two with a bank reconciliation. Note that as we look at the bank statement, the beginning balance now, of course, matching what was on the ending balance as of the end of last bank statement. So there's last bank statement, ending balance. That's going to be the beginning balance for this bank statement. So when we do the bank reconciliation process within the bank reconciliation, it already knows what the beginning balance is. We know what the beginning balances with regards to the cleared balances in the bank reconciliation process. We know what the ending balances now on the bank statement. And then the difference between the two are going to be these items. In other words, these are going to be the items that are that are going to be the activity of course in the deposits and the checks and other withdrawals down below that we're going to have to find if they're on this bank statement, we need to find them in our books, check them off. If we check all of them off, then we have to have the reconciliation process must work. So in other words, if it's on the bank statement and it's not on our books, we're going to have to add them to our books. Unless under the rare circumstance, the bank made an error, unless there's a problem with the bank statement. And if it's on our books, however, it may not be on the bank statement and those will be the outstanding checks, the outstanding deposits, the things that we will use to reconcile the ending balance that's currently on the bank statement to the ending balance that's on our books. That will be the actual bank reconciliation report. We're going to be focusing here on the deposit side of things. So let's go on over to our our transactions or our books again. And we want to go into the banking section now. So we're in the banking section and then we want to reconcile. So we're going to go to the reconciliation process, which is going to be down below reconcile accounts. I'm going to make this large and I want to make sure that I'm on the checking account. So make sure that you're on the checking account. We want to reconcile for the end of February. So the date should be at the end of February at this point. Then we can start off by going down below and saying we need to put our statement ending balance. This is from the bank statement. And that's going to be the 105 here, the 105 573, the 105 573 84. So this is 105 573.84. So I think that's right. 105 573.84. Let me just check it one more time. 105 573.84. Yes, that is correct. That's an important number. And then at the end of this, we're going to have a zero balance over here. And that will indicate that we have indeed reconciled. Now this is going to be all the transactions in our books. So this is what is in our books that we're going to have to be matching out to what is on the bank statement. So I'm going to go ahead and look at the deposit side of things by selecting the drop down up top deposits and bank credits. And again, just notice that terminology of bank credits as being, you know, different than what's in our, our books, right? Depots and credits being different if you're talking about bank debts and credits, because they're the bank, you know, not our, our books. So a lot of things will be kind of reversed from their perspective. All right. So then we're going to be back in here. And again, always going from the bank statement to our books. I'm not going to be starting the bank statement, bring that back to our book. So here's the 139875 and then on our books, the 139875 note that this one right here, we wrote that in January. So it was one of our outstanding items in January. It's a timing difference. So it didn't clear the bank until February. We're checking it off now, even though it's in our books as of January. Note the cutoff and that flow over the cutoff. That's going to be part of the bank reconciliation process. And then we're going to go back on over here. And I'm going to make that green because that's what I do when I find it. Because that's that means it's good. Green is good that it's been found. So I'm going to say that's been found and that's good. And then we have the 17. So I'm going to go back on over to the 17 and there is the 17. So we found that one. And then I'll come back over here and say that that one's been found. I like the lighter green. That one's a little darker. It may not be able to see the number anymore. I'm going to change it to this green, the lighter green there. Let's try that one. All right, then we're going to the 140750, 140750. It's important to get the shade of the colors you're using correct, obviously. And then there we have that. So we're going to go back on over and then check that one off. So those are going to be all the deposits. Notice we found all the deposits that are on the bank statement on our books. And we have one deposit on the books that's not on the bank statement. So a couple of things just to realize here is second bank reconciliation. We had one of our deposits that cleared in February that was actually written in January. That's a cutoff issue, obviously. And that's fine because that's part of the bank reconciliation process. And we have this other one, which was written at the end of the month. That's didn't clear. That's not going to clear until March. So that's going to be one of our reconciliation items. This is going to be a reconciliation item here between the ending bank balance on the books and the balance on our statement as of the same point in time. So that's going to be one of those items. So then we're going to continue on with this next time. Also, just realize here that how easy it was if the grouping of the deposits in your books is the same as the grouping of the deposits on the bank statement. If you have some kind of system where the grouping of deposits on your books is not the same, such as depositing transactions as you collect them during the day and then not putting them into the bank and the same kind of grouping as they'll be seen on the bank statement. So you go into the bank and you deposit it all into the bank in one group, even though you put it in the books in multiple. You might think that might be easy to reconcile. And it's not too bad. But if you have a lot of deposits, that becomes overwhelming. And again, if you're dealing with something like credit cards that are batch depositing things into your in your account and it doesn't tie out to how the banks does things and those deposits aren't tying out. You really want to find a way to reconcile those things. Talk to the credit card company. Talk to the bank. How could you get these things to match up the way they're going to be reported? The batching needs to be the same or some way that we can basically reconcile it. If you're collecting deposits and you have to go through a clearing account, then do what you have to do to make the reconciliation process easy to deal with. That's going to be it for this time. We're going to then continue next time, of course, with the check side of things and the decreases within the checking account and reconciling those items. That's it for now. Let's get out of here.