 So now we've entered information a lot for the decrease side of things. Now we're gonna be looking at the increase side of things. So you can look at the increases by sorting by amount on this side. So I could sort by amount and that'll give us the increases or you could use some filtering options as well. But I think this work method works good if you have multiple months in place, you might wanna sort first by detail, right? So it's gonna sort by detail and then sort by the amount and that will give you basically the dollar amounts on top in terms of the deposits and then secondarily sorted by the detail. So you've got the same information kind of next to each other. So now we wanna think about how can we construct the deposit side of things which from an income statement perspective would be recording the increase to income and an increase possibly to cash generally using the bank feeds. That could be a little bit more complex and different depending on the type of industry we're in. So let's take a quick look at the flow chart and recap the different kind of flows that we might have from the customer or revenue or sales side of things where at the end of the flow we expect cash to be going up although there's a couple different ways to be getting there, right? At the end of the day we expect cash to be going up but we might be on a cash base method we might be on a cruel method we might be completely dependent on the bank feeds to record the transactions. The easiest thing to do if we're trying to construct our bank feeds our financial statements directly from the bank feeds is to just rely on the bank feeds and wait till something is recorded in the bank which means it's a deposit it's an increase to the account and just simply record it with the deposit form as income. So that would be great if we can do that but we can only do that for particular types of industries usually it's like gig work or something like that because if you're getting paid by YouTube for example or some other platform you can just wait till it clears and then you can just record the deposit through the bank feeds with a deposit form the other side go into an income account. Note that you do lose a little bit of like more information that you usually get from a full service accounting system because the deposit form is not the natural form to use when recording revenue. QuickBooks is designed to use the sales receipt on a cashed based system to record revenue and the invoice on an accrual based system to record revenue. So if you don't use those two forms you're not using the items in the same way or the customers in the same way therefore you have a little less detail for the subsidiary reports of breaking out sales by customer for example and sales by item the things that you sell but that might be well worth doing if it's the easiest thing to do in like a gig work situation. Now if you have a little bit more difficult of a situation let's say you have a cash register in a food truck or in a restaurant or something like that then you're usually gonna record the sales with the sales receipt which is kind of recording it at the cash register that's still a cash to based kind of system because you're getting paid at the same point in time you're doing the work but you're usually not recording the cash receipt directly into the checking account here and the actual money usually isn't going directly into the checking account at that point in time and what will happen is you're gonna get the money in whatever format you're gonna get it credit card or let's just assume cash for the moment that's the easiest thing to think about and then you're usually at the end of the day gonna wanna compare the money that you've received to which in the cash register and then you're physically gonna take that money and deposit it into the bank and you're gonna wanna make sure that when you deposit it into the bank in your bookkeeping system you do it in the same format as what is in the bank so that then you can use the bank feeds to double check to help you to reconcile. So in this kind of system you're kind of forced oftentimes in other words not to wait till the transaction clears the bank in order to record the transaction because you want the internal controls of recording the transaction at the cash register point in time of sale and kind of double checking the sales reports to the cash as well as same thing with the credit card statements and so on so oftentimes we'll put money in here put it into an undeposited funds account in our accounting system and then we'll take it out of undeposited or whatever you wanna call it a clearing account amounts to be deposited they call it something different online but same idea and then we'll take it out of there and put it into the checking account in such a way that we can match it to what's on the bank statement or in the bank feeds helping us with the bank reconciliation still a cash based system but it's more complex to do it because it's a full service cash based system instead of one in which we're completely reliant on the bank in order to construct the financial statements and that's because of the industry that we're in then we could be in an industry when we're in a cruel type of system meaning we're in the type of business where we have to do the work first and then send out a bill or invoice for the work done like a bookkeeping firm law firm like a landscaping or something and so that means that this transaction has nothing to do with cash so there's no way we can record it with the cash based system of just recording with the bank feeds so I have to hit the invoice which will increase accounts receivable the other side goes to sales at this point in time then we're gonna receive the payment and then we can record basically the deposit so the way QuickBooks is usually designed to work is we enter an invoice accounts receivable goes up, sales is recorded we receive the payment generally we decrease accounts receivable record the other side into this clearing account called undeposited funds or funds to be deposited or whatever you wanna call it because we wanna make sure that we group the money that we're receiving in the same format as it will be showing on the bank so then in our accounting system record the deposit which might be comprised of one received payment or multiple received payments or multiple received payments and credit sales for example if we got multiple cash flows in that were cash I'm gonna deposit them at one time I wanna make the deposit in my system the same format that will match on the bank's side so when they do come through with the bank feeds we're just gonna match out to the bank feeds instead of recording the transaction through the bank feeds and then of course inventory as we talked about before also complicates the system because if I'm tracking inventory on a perpetual inventory system I have to use an invoice and a sales receipt to record the items of the inventory so we'll start to look at this and we'll start at the easiest method meaning you're in the type of industry that you can just record transactions with a deposit form and then we'll get into more complex methods and branch out from that easiest method and try to explain step by step why you would need to record something a little bit different depending on the method