 Here we are in our QuickBooks online test company file. We started up in a prior presentation. Remembering we're in the accountant view as opposed to the business view you can toggle between the two views by going to the cog up top and switching the view down below. We're gonna duplicate some tabs to put reports in by right-clicking the tab up top to duplicate, right-clicking the tab up top again to duplicate again, back to the tab to the middle, reports on the left-hand side. We wanna open up the balance sheet as that's thinking tab to the right, reports on the left, this time the profit and loss. Closing the hand boogie, changing the range. We wanna go from 010125 to 06325. I wanna see it on a month by month, side by side for the month by month and run it. That's what we have thus far. Tapping to the left, we're gonna close the hand boogie, changing the range in 010125 to 06325 and let's see this by a classes breaking out. We want a classy report. A lot of class happening here. Okay, then we're gonna go to the first tab. We're gonna then go down to the projects on the left-hand side and let's go into the projects. So we're within the projects. So let's recap what we've done thus far in our Excel worksheet because it's a little bit easier to tell the story. So we started with an estimate. We gave out the estimate. Total of the estimate was a 100,000. When the job was accepted, we wanted a $10,000 down payment. So we didn't record revenue, but build the client for the 10,000. And then we recorded expenses for the month of operation that actually started on month two. And these were actual expenses that we recorded. We recorded expenses for month number three and we recorded the related revenue, not in alignment with our billing structure, but rather in alignment with the percentage completion concept that we did with this calculation here. And then on month number three, we did the same thing. We basically calculated our actual expenses and then we had this percentage of completion. And now we wanna be calculating or recording the revenue. So let's just recap. By the way, I did not record this last bit in our Excel worksheet, although we did do it in QuickBooks. So we'll record that here now when we did the work here. And we'll record that on, I'm gonna say 331. And it's gonna be cost of goods sold for all the stuff that we did, material, labor, overhead, I'm gonna put into cost of goods sold for the 19 total, 19, 527. The other side, let's add some more blue space. I'm gonna need some more blue spaces. And let's just add one more for now. And then we'll add some more after, after, after. Okay, and then the other side's going to cost of goods sold, we just paid cash. Cash went out the door for it to get it done. All right, and then if I record that over here, I'm just gonna say cost of goods sold is right here. I'm gonna say F2 plus F2, F2. And that's gonna be 19, 527. And then the checking F2 plus F2. And there we go. And so now we're back in balance. And notice here, when I do this in like a little worksheet format, we can only see this, we can't break it out by month. So that's why in QuickBooks, it's nice that we have this revenue that can be broken out over here on a month by month. So we kind of add a dimension in like the database program, the total still coming out to the 16, 15, 621 for that timeframe that we could see in our little worksheet, 15, but it gives us some more dimensions in QuickBooks, although it adds complexity to do so because we have to deal with these forms and whatnot in order to calculate these journal entries. All right, so now we're gonna recognize the revenue. So I recorded this on our side. If I go to this first tab and we look at these, the costs, for example, as we can go into the costs of goods sold and we had these expenses that we entered. And when I entered this expense item, I made it billable. Now, when I say billable and I did a 30% markup, we're not gonna actually give the bill to the client because we're billing the client based on our billing structure here that we came up with in accordance with our estimate. So, but we are gonna make it billable so that we can then record the revenue with an invoice because the invoice is typically the form used to record revenue. So, now we're gonna pull this into an invoice not so we can give it to the client but so we can record the revenue in our QuickBooks system. So let's go back to our projects, project number two, close the hand buggy, and then I'm gonna say we're just gonna make an invoice and the invoice is not gonna come from the estimate because that's what I'm using when I actually want to give the invoice to the client but rather I'm gonna pull in these billable items which is gonna help me to calculate the actual revenue on a percentage of completion kind of concept. So if I go through this thing here and say, okay, that's good and this is gonna happen on, we'll say 331, okay. And so now it pulled in the materials, labor and overhead and put it into, and then it did the markup over here and so that looks good. Now the invoice is typically going to be increasing the accounts receivable and the other side is gonna be assigned by these line items revenue. For our purposes, what do we want to have happen? We want the revenue to be going up but we want the other side to go to work and process. So if I see that on this side on our Excel sheet we're gonna, let's do this on our Excel sheet. So I had my 19.527, the percent completion is that divided by my total estimated cost, not including the markup that I'm gonna say here and then we're gonna say if I multiply that percent times the total revenue, then the revenue that I should be recognizing related to that cost should be 25385. So if I was to do a journal entry down here, let's add a little bit more blue so I can do it and then we'll make another area to enter because I'm getting too far down but one more transactions down here, just one more. 331, we're gonna say I'm gonna put the revenue on top even though it's a credit because that's the first thing I think about, right? So I'm gonna say the revenue is a credit of that 19, of not 19 of the 25385 and then the other side, I don't want it going to accounts receivable but rather work and process which is easy to do from a journal entry standpoint but we have to do a little bit more funagling, a little bit more funessing on the QuickBooks side if I wanna use an invoice instead of a journal entry which I do and so that's what we will do. So let's go back up top and record this. I'm gonna go into the revenue, say F2 plus F2 and go down 25385 and the other side was going to work and process the WIP account, F2 plus F2 and work and process, boom. So that puts us back in balance here. That's what we'd want to do.