 We're doing the reconciliation as of the end of January. So here is the cash account. That's where our focus is. We've got our bank statement over here. And so we have a difference between the register balance and what is on our books. So we're gonna have to do some reconciliation. That's what we're doing at this point in time. Let's go to the tab to the left. We've started our reconciliation process and you can find that reconciliation process by going down to the left. Accounting on the left-hand side. Reconcile. If you're in the business view, by the way, where's it in the business view, you may say. And I'll check it out. It's over here under the bookkeeping. It's under the bookkeeping. And so if I hit that and then reconcile. Right there, that's it. So now we've started this. We're gonna reconcile the checking account as we've discussed before. We're gonna resume, continue on, proceed, pour favor. We're gonna go close up these little note things. Don't show me this again. That's what I wanna tell it. Do not pop up again. All right then. And then we go to the edit. If we go to the edit info, we entered our beginning balance was 25,000. You'll recall that that doesn't exactly tie out here. That's our beginning balance problem. We'll deal with that in a bit. We've got the ending balance 61, 241, 85, which is our statement balance as of 131, 23. That's our information. We've got the recap up top. This is the statement balance on our financial statement. And this is the cleared balance, which as after we're done, these two should match, meaning there'll be a difference of zero on the right. So how are we gonna do that? The summary is up top. Just like the summary is up top here in our statement, the beginning balance is not exactly right, but we're gonna fix that later. This 143, 70, 85 is right there. So we're good on that one. And so we just gotta enter the payment side of things. And then once we fix everything, there should be a balance of zero as the difference, which means we'll know that we're good to go. It does not mean that we'll have everything checked off down here because the things that are not checked off will then be the reconciling items in our bank reconciliation, the difference between the register balance and the statement balance. Okay, so let's go back on over. We're looking at the payment side. So we did deposits last time. We checked everything off except this one that was in our books, but not on the bank statement. We're saying that that's gonna be a reconciling item. Let's do the same thing on the payment side of things. We'll just select the payment side. I've got the cog dropdown so that I'm on the regular view so I could see a few more of them at one time. Remembering that on the payment side, this is usually gonna be the longest and most tedious kind of format of the bank reconciliation. So let's just recap what we might see on our bank statement. There's a couple types of ways you can make payments. You can make them with checks or you can make them with electronic transfers. So if you make a payment with a check, then that's going like out of fashion these days, I'm aware, but many people still use the good old check. If that's the case, it's more likely that you're gonna enter the check and you're gonna wanna do the full kind of system. You enter the check and then it's gonna clear the bank. You're not gonna wait till the check clears the bank and record it with the bank feeds. In other words, because you want to see these outstanding items. You want to be determining whether you wrote the check and whether the check was deposited. And this is kind of how you would do that. So that means if we wrote a check, the date is not as relevant a factor for us to help us determine the proper thing to be checking off because the date that we wrote it may be way earlier than when it was deposited. We will have a check number however, which does help us. That's an added kind of feel that's useful when we write the checks. And of course the amount will be relevant. That should tie out in our books to what's on the bank statement. If we have electronic transfers then, then the date will be much more relevant similar to a deposit because the transfer should go through pretty quickly. We also are more likely if we're using electronic transfers to wait till it clears the bank before we record it. In other words, use bank feeds to record the transactions. If we record the transaction with bank feeds, then everything should tie out exactly because we constructed our books from what's on, in essence, the bank statement because we got the same information from the bank feeds. So that's becoming more and more likely for small businesses to do on the payment side of things. So oftentimes it's gonna be an easier thing to check off. Even if you enter the data first and then you're checking it to the bank with like a bank feed, I mean with like an electronic transfer, the date will be relevant then and you might have then more information in the memo section which often gives you information that can indicate who the vendor is. Notice that when you enter transactions into the system with bank feeds, the memo might tell you who the vendor is but you still have to add them as a vendor in order to show that otherwise it's just a memo. So that's something that just kind of be aware of and then of course the date. So we're gonna do the same thing. Remember that we're gonna be always checking from the bank statement to the reconciliation to QuickBooks. We're not going the other way. We could start to go the other way after a while once we start thinking the process in our head but you get kind of confused if you're going both sides. If you always go from the bank statement over to our books, then whatever's on the bank statement has to be on our books. It's not true reversed. If it's on our books, it's not necessarily on the bank statement because those things that we don't check off will be the ones on our books that aren't on the bank statements because they haven't cleared. Those will be the outstanding items. Those will be the items in our bank reconciliation giving us the legitimate difference between the book balance and the bank balance.