 Here we are in our QuickBooks Online Test Company file using the Accountant view as opposed to the Business view. You can toggle between the two views by going to the Cog up top and switch the view down below. Duplicating some tabs to put the reports in like we do every time. Right click on the tab to duplicate it and then we're going to right click the tab to duplicate it. Let's go back to that middle tab, down to the reports on the left hand side and we want to open up the balance sheet to start off with as it's thinking. We'll tab to the right reports on the left hand side. This time let's open up the P and the L, the profit and the loss. Let's close the hamburger and change the range from 11.01 to 5 to let's say 11.30 to 5 and run it and then tab into the middle closing the hamburger. I'm going to go from 11.01 to 5 to 11.30 to 5 and run that one as well. Now in prior presentations we've been thinking about our e-commerce situation where we're selling inventory but not on ground in the store rather online using some kind of application such as a Shopify for example. And last time we thought about the easiest method to basically track the Shopify income as it pulls in to our system. That being just waiting until the thing hits the bank account and using the bank feeds to enter it into the system and we saw that although that is quite easy it does have some limitations in that we don't get as much detail in terms of the actual items that are broken out where we have a net amount that's actually coming into our bank account. So we might want more detail for tax preparation to deal with sales tax issues and also to just have more information for our decision making purposes. So I'm going to do this in Excel first because Excel is kind of the most transparent way to see this and then we'll do a similar process in QuickBooks. Now note when we look at this process you can think of it where you're going to think of it as a manual process first but this is what a lot of the applications are doing as well. So when we get into the apps including the integration, the QuickBooks app integration what is it doing? It's not pulling most of these apps and the ones most people recommend is not pulling every transaction in as though it was a sales receipt mirroring a perpetual inventory system like we would have in an on-ground shop instead it's summarizing the data in some way. So whether you're going to use an app or not it's useful to first think what would be the manual method to do if I was just going to try to pull the information in so we can understand what the apps are doing. So you could use this manual method so you don't have the integrations and the other apps and or you can use this as a stepping stone to understand what the apps are doing so that when you pull in the information with the app you have some ideas of why it's and how it's doing what it's doing. Okay so if we go to our Shopify the general idea is if we have an online platform we're concentrated on Shopify now we might do an Amazon comparison in a future presentation but the idea would be that you get the information from the Shopify and we're not trying to pull in every single transactions. So for example if I go to my analysis in the Shopify and I go into the reports and I'm going to take a look at the total sales reports here these are all the transactions that have happened obviously this is not much happening in this particular Shopify but that's all the stuff that's happening I don't want to pull in each of these individual items as a separate sale in QuickBooks for many of the reasons we talked about before it overwhelms the system and all that and I already have the information here what I want to do instead is to group this information together in some way shape or form so that I can have a lump sum pulling to my system. Now what is pulling into our system as we saw last time are the bank feeds so so that means that there's already a grouping going on by in essence Shopify that's going to tie out to the payouts that they're going to be giving us so that means that we want to tie out we can try to summarize all the data that happens per payout that we're going to get that we already said and saw that hits our bank account right so if we look at the payouts then if I go to like my finances up top and we go to the payouts I can go in here and say all right there's my payout so I want to basically look at all the data the ties to the payouts now I believe Shopify pays out like every day whereas something like an Amazon pays out every every two weeks or something like that but the general idea is we'd like to enter this so it ties into the payout so if I go into here for example I can see my my data the gross and the fees related to the payout that's happening here and then I could see the transactions that took place and the transactions numbers and the date that it took place here so when I go on over to my bank feeds for this particular example I integrated this example so this isn't a manual one but if but this one I used the commerce which will talk about later in order to connect the Shopify and if I look at the commerce tab that same data kind of pulls in to the to the orders and then the payout so here's the actual payout it also pulls in to the payout tab up here which will talk about in future presentations and then in the banking side of things I should see a deposit that's going to come through on the bank for this 715 right that we're going to tie into okay so that's the general idea so then I want to run a report on this side that's going to tie into the total this 870 before the fees because the fees are being charged here on the Shopify payout thing and in the analysis side if I go to the reports and if you have a higher level of of plan you might have better reports but if I go into the total sales tab and I run this thing for just that day and I look at the invoices to make sure I have the same batching of invoices I have one more invoice I believe this last one was not in there so this totals up to to the 480 on the gross and then we had we had shipping what brought it up we charge for shipping to 989 70 minus that $1 to bring it because this one wasn't included before and that gets us to that 870 number so so this we have a little bit different example in Excel from these numbers to make it a little bit more complex but we're mirroring that kind of concept over here right so we have the sales side of things we have the sales and we had discounts in this example no returns here's the sales and there's the shipping and we imagine that we had sales tax collected in this particular example to get us to the sales the amount that we we pulled in 1669 91 we then imagined that we didn't just have the Shopify pay which is which is what we're using in our example but also connected I'm sorry that we didn't just have yeah just a shop of hot but we also connected the PayPal right so then we have the PayPal in there and some of the payments were paid out with PayPal PayPal charges their own fees and then the rest was paid out from Shopify so that's the general concept and then in this screen this screen is basically mirroring the payout screen that we looked at we see that the we're charging that added 1548 in this case for the payouts that were for the Shopify sales now last time we did our little Excel worksheet imagining we just wait till the payouts hit the bank account in this case we would have two payouts one from PayPal one from Shopify and we just said that the checking accounts going to go up that the PayPal accounts going to go up and then sales is going to go up for the other side of the transaction and then we made an adjustment to kind of tie into the 1099 imagining we got a 1099 at the end of the year however that's some estimates that are happening there and we're losing some more detail of the data if we want to add more detail of the data we could take this information where imagining basically came from the reports we looked at from Shopify