 and they're gonna be adjusted by the credit card company grouped in some way, shape, or form and deposited into the bank. Therefore, usually you're gonna have to enter this transaction in and then it's gonna go into an undeposited funds or a clearing account of some kind instead of going directly into the bank account so that then you can take them out of the clearing account and deposit them internally on our side rather than wait until they clear the bank. We deposit them on our side in the same grouping as we expect them to clear the bank. That's what often messes people up. When you have a credit card company, for example, the credit card company usually takes your deposits, groups them together and then puts them into your bank account, not one by one sale. If I sold widgets that cost $5, the credit card company is not gonna take each $5 sale and deposit it into your bank account $5 at a time. They're gonna group it together and then give you one lump sum deposit. And that's why we need the clearing account so that we can group it on our side in the same format as being grouped by the bank and that's gonna add a level of complexity. We'll talk about that when we get into the forms here. And then if you're on an accrual-based method, you're gonna enter an invoice and you possibly could have a step before that as well. If you have a job cost system, for example, you might have an estimate. So someone might call in, they give you an estimate and you say, this is how much it's gonna cost based on what we think is in our billing. And the estimate doesn't actually record anything. It's just an internal transaction. But if you make an estimate and then they accept the next estimate, then you can create the invoice from the estimate. The invoice is then the form that's gonna record the revenue. So revenue will been recorded at the invoice, but no cash will be received at that time. Instead, it's gonna go into accounts receivable. Therefore, accounts receivable is an accrual account. If you're using accounts receivable, if you bill someone and they're gonna pay you later, then you have to track the accounts receivable. There's no getting around it and that's gonna be a major part of the accounting process because you wanna make sure that you're getting paid for the work that's being done. So you're gonna be increasing the accounts receivable with the invoice. That would be for businesses, again, like bookkeeping, law firm, landscaping, many businesses, that's just the way it works. You're gonna have to do the work and then bill the client often for the work. Then they're going to pay you and we're gonna receive the payment. They might pay you by check. They might pay you by electronic transfer. They might pay you by credit card. If you have those set up, when you receive the payment, then oftentimes, we might put it once again into a clearing account instead of to the checking account of undeposited funds. And the reason is, similar to what we talked about before, if it was a credit card, for example, I might get multiple payments that then the credit card company groups together, batches, and then puts them into my bank account as one deposit. And therefore, I'm gonna have to do that on my end as well. I'll put it into a clearing account, undeposited funds or funds to be deposited. And then I'll use my deposit form on my side to deposit it in the proper grouping so it shows up on the income statement as one deposit instead of three separate deposits, the format that hopefully will be shown on the bank feeds or bank reconciliation, making the bank reconciliation easy. Now, it might be the case that you get paid by check or you get paid one at a time, one invoice by a time. Usually that would be the case if you have higher dollar amount items. If they're just sending you a check or they're sending you an electronic transfer for the amount, you charge them $200, they pay you $200. Then you can just deposit it directly into the bank account possibly with the received payment forms and you don't have to deal with that whole clearing account issue. And so that's gonna be the general process. So you can see here, there's actually a lot of variation with the different kind of accounting cycles you might go through. And if you have inventory, that's gonna complicate things a bit more because the inventory is something that you're gonna have to use an invoice or a sales receipt for if using a perpetual inventory system because you might not be able to track the inventory by just using the deposit form. So you wanna make sure that you have your, see how complex your system is and make sure that you have your flow down correctly. You can't just pick the easiest thing. It's gonna be dependent on the industry that you're in. So if I select this dropdown here, in future presentations, we'll go over each of these forms looking at the data input and the impact of them on the financial statements, at least most of these forms, if not all of them. So the invoice is gonna be the accrual form. That's the one that increases accounts receivable. An accounts receivable is an accrual account. The receive payment is the form after we enter an invoice and then the customer pays us lower in the accounts receivable and then recording the deposit either into a clearing account, undeposited funds are directly into the checking account. An estimate form will only be there in certain types of industries. So if you have to do an estimate first and then you make the invoice as a job cost system or someone calls in and they wanna know how much something will cost, you might run an estimate instead of an invoice and then you can use the estimate to create the invoice. The credit memo is a form that could reverse, say an invoice. And so that can be a little bit complex to think about the transaction for it. So we'll talk about that in future presentations. The sales receipt is the form that you would use generally if you're at a cash register, cash-based system, but one which you can't wait till the deposits clear the bank instead having to enter the deposits as they happen at the point of sale, like a cash register and then most likely put those into a clearing account undeposited funds or funds to be deposited so that you can then group them properly as they go into the checking account. If you're doing your bank feeds or you're doing your bank reconciliations and you find that you have to add multiple deposits together in your bookkeeping system to tie out to what the bank says, then you probably could make a accounting system that's more efficient so that you can match. The bank reconciliation and the bank feed matching should be really easy automatic if your system's set up properly. So, and then we'll get into the refund receipt, delayed credit, delayed charge, other forms that could come up and the uses where those might be necessary. We'll talk about them in future presentations.