 through notice we didn't have a deposit for a hundred dollars we had the deposit for a hundred fifty dollars because there was a grouping of some kind of multiple deposits so let's show that let's say we're gonna approve it and add another approve it and add another and let's say this is customer number four we'll say customer number four to make a new customer and let's say this also happened in october oct one oct one and it sounds like a like a username or something oct one act one oct one this is going to be sales of some kind one and this is for the fifty dollars let's say so now the two of these sales add up to the 150 this is going to increase the accounts receivable and the other side is going to go to revenue uh so let's go ahead and say approve it and let's check it out then let's check it out as soon as i get the green go ahead there it is the green has told me i can move forward so if i go into the accounts receivable into the a to the r the a accounts to the receivables the r as the pirate calls it r the r account there's the uh 50 and the 100 adding up to that 150 if i go back up and i go to my income statement now we recorded the revenue when we did the work so the revenue is already recorded even though we haven't yet got the money it went into the sales account here and if i check that out checking it out right now man checking it there it is and there it is so revenue went up movie b to the n now we're also tracking this ar because we have to collect on the accounts receivable that's the accrual component accounts receivable is an accrual account cash isn't involved with it if it was a cashed based system we wouldn't have ar but we have to have ar in certain industries because we have to track who owes us the money so if i go back to the first tab i can i can track internally in the ar with the business drop down invoices and we can then see we have these awaiting payment items these are the ones awaiting payment uh and so we can kind of track those out here we can also track it by going to our contacts and look at our customers and we could see the outstanding balances the outstanding balances these these balances are outstanding uh that's not a good thing that's not a good but what do you mean they're outstanding anyways uh so these are our outstanding deposits so then if i go back into my business drop down and then i go into my invoices the point is that when i get a payment let's imagine that the payment processor or whatever is grouping these two together so we saw on the bank feeds it hit the bank feeds as 150 so if i tried to just match these invoices to the bank feeds i waited till i got paid on the bank fees let's go back into the bank feeds and i and i look at that 150 it's going to be a little difficult to tie out uh these deposits to the bank feeds back to the reconcile and then let's find that 150 it's actually 150 but 150 is how you say it when you're cool that's how cool people say it so anyways here's the 150 and then so it's going to be difficult to match it over here so if i go over here i could do it right i could go to the matching and say yeah that's going to be this and this and and then boom you're good to go you could do that but normally that's not the most efficient system because that means you're going to have to do like a bunch of work over on on the reconcile and the reconcile should be the if you have a good accounting system reconciling should be easy and oftentimes these kind of problems are caused by intermediary uh systems in there like financial institutions like pay pals and stripes and there might be fees involved that kind of mess this up as well so this isn't so if you find yourself kind of having to take off multiple things to tie out to a deposit you probably don't have the most efficient you know system you could probably do it better uh because again the bank the reconciliation process should be as easy as possible so what would probably be better than is you could say as you get paid when you when you receive the payments you can go into your business drop down invoices and zero has this nice system if i go into the awaiting payment once we receive payment to click these two off now i can click these two off and make a deposit of both of them now and i can deposit both of them at the same time for the one hundred and fifty dollars and that's great because then i can deposit it directly into the checking account and i'm showing one hundred the fifty and the one hundred detail when i check this out on the customer side but when it hits the bank it'll be there at one hundred and fifty deposit which will match easily zero will probably find it it'll it'll it'll be able to match automatically now i want to just throw one more wrinkle into this that could happen and that is that maybe there's fees that are involved maybe you have a a paypal or stripe that's going to have fees that kind of messes up the invoice to to when you get the payment uh or uh you might have other kind of receipts that you're also receiving through the credit card company or something for for not invoiced items but sales receipt items or receive payment items if i hit the drop down receive money so in that case you're getting other deposits maybe that aren't simply from invoices that are also being grouped in or you have fees that you're dealing with then this system will still not allow you to just deposit directly into the checking account that's when you might need a clearing account so that you can put it into the clearing account and then take it out of the clearing account and make sure you deposit into the checking account in the same format as will be seen on the bank statement so let me see let me just show you what that looks like uh if you had to you do that system and it really depends on how complex and what industry you're in usually and what payment methods you're using how are you getting paid so let's go to our bank accounts and what i'm going to do is i'm going to add another bank account but it's just going to be a clearing account i'm not going to connect it to the bank or anything so i'm just going to say add another bank account and it's going to try to connect it to the bank feeds and i'm like no uh so let's say it was bank i'm just going to choose the bank of america and i'm going to say bank of america and then it's going to be like do you want to connect to the bank and i'm just going to say no i just really wanted to set up like an account that's a clearing account but but they don't care about that so you don't have to tell them that but that's what we're doing so then we're going to say the account name is going to be cash clearing account account type i'll just call it uh other we'll say account number i'm making up a number and us dollars minor and us dollars because i'm in the us and we typically transact using the dollar as the form of transaction although inflation is destroying it and uh at the moment which is a little frustrating to savers like myself that have worked hard and put them okay that you're getting off track so so now what i'll do is i'll go back into the business and then we'll go into the invoices and go into the awaiting payment and we'll select these two and i'm going to deposit them into the clearing account so i'm going to say uh deposit actually let's do it one at a time so you can kind of see why the clearing account might be well now i'll keep it here so i'll deposit into the clearing account make up your mind my mind doesn't like making up it wants to change stuff all the time