 Here we are in our QuickBooks online test company file. We started up in a prior presentation. Note that we're in the accounting view as opposed to the business view you can toggle between the two views by going to the cog up top, switch the view down below. Let's open up a few tabs, duplicating some tabs to put reports in. Right click the tab up top to duplicate it. Right click the duplicate a tab to duplicate again. Back to the tab to the middle. Reports on the left-hand side. We're looking for the bail and sheet, the bail and sheet report. And I'm gonna date range that from 0101 and let's say 25 to 063025. All we have in there thus far is going to be the amount that we put the deposit into the checking account, the other side in the billings. There's nothing on the profit and loss, but let's verify that by going to the reports, the profit and loss, closing up the boogie and changing the range 010125 to 063025 and run it. Nothing there thus far. All right, let's go back to the first tab. Now we're gonna be, I'm gonna put this in an Excel worksheet as well because I think sometimes to see the transparent format of Excel is useful. So I'm gonna build an Excel worksheet. And if you don't wanna build an Excel worksheet, you don't have to. We can put it into QuickBooks, but I just wanna show you what I'm doing from the ground up so that if you wanted to follow along with it, you can. So what I'm gonna do is I'm gonna create like a journal entry, which is more transparent way to see something than the database program in QuickBooks. And then I'll make a little trial balance, which will allow us to see what's going on one page. So what I'm gonna do is I'm gonna make a skinny column over here. I'm gonna make it the same skininess by selecting column C, home tab, format painter. Gonna make a skinny column over here. I'm gonna put our transactions in a journal entry format here, so I'm gonna say the date will be in this column, account that will be affected. And then I'm gonna say debit, debit. I'm gonna put debit and then credit on the second line, credit. And the credits I'm gonna put in as negative numbers. If you're not familiar with debits and credits, that's okay, because the concept will still be there and we can introduce some debits and credits. I'm gonna pull this down, I'm gonna cut it, I'm gonna cut and then put it right here. So it lines up to the bottom. I'm gonna make this a header format for me, and that usually means I'm gonna select the whole thing, go to the first tab, font. I'm gonna make it letters white and the background black. And then typically I'll center it. And this second one, I'm gonna make my credits be negative because negative numbers are gonna be red. I'm gonna make it red because negative numbers are gonna be red. So the credits will be red and bracketed. So I'm gonna put the credits and the debits and the credits in the same column and represent that they're gonna be credits. I'm gonna make this wider by the credits being negative numbers. So that might be new to some people, sometimes that bothers people, but it's actually the most efficient way to put it into an Excel sheet, which is quite useful. So then I'm gonna say, let's build our trial balance. Let's make another skinny. So I'm gonna take this skinny and make a skinny J. And I'm gonna put the accounts. Let's do the same format. I'm gonna say accounts. And then I'll say the entries. Entries. And then I'm gonna say, I'm sorry, this is gonna be the accounts. These are gonna be the beginning trial balance. And then these are gonna be the entries or let's say journal entries. And then the ending trial balance. I'm abbreviating balance, something like that. And then I'm gonna center these again and make them my headers black and white. Center them. And then this one I'm gonna make black and white and I won't center it. I'll keep that as it. Sometimes I don't center this one too. I'll make that un-centered. And so there we have that. And then the accounts. I'm just gonna put the normal accounts that are gonna be affected. So we have the checking account, checking that we're gonna deal with accounts. Receivable. We're gonna be dealing with a work in progress account. We're gonna have a billing's account. We're gonna have a retained earnings or equity account. Let's just call it equity account, retained earnings, something like that. And then depends if you're sole proprietorship, partnership, corporation, but revenue or income, cost of goods, let's say goods sold. And let's say equity account. Let's be kind of consistent here with my capitalization and cost of goods sold. And then I'm gonna have the total. Total debits and say credits bracketed, the credits making it red again to show that the credits are gonna be negative. And there we have it. So the beginning balances are just gonna be zeros because we're just gonna start from a blank slate. So there's nothing in our worksheet yet. So I'll just sum it up. Probably don't even need this column because of that. But I think it's still useful to have this format. And then the middle column, that's gonna be our journal entries. I'm gonna make that blue. That's what I usually do when we're doing the data inputs. I'm gonna right click here. I'm gonna go to the bucket and I'm gonna call that blue. And then I need to put some definition. So I like to go to the format and then add the borders with the all borders. And then the ending balance is gonna be the beginning balance plus the journal entries, which I can sum up equals the sum of these two. You'll see how this works once we post those first two journal entries we already did. So then I'm gonna copy that down. I'm gonna put my cursor on this fill handle right here, drag it on down. And that just does the same formula all the way down. And then I wanna sum it up at the bottom. So I'm gonna grab this formula, grab the fill handle, drag it to the right, which will sum up each column, summing up each column. And then I'm gonna underline here. So I'm gonna go to the home tab font group underline. There we have it. And then I'm gonna have a net income calculation at the bottom, net income. I like to differentiate the income statement from the balance sheet components, which is right there. There's the defining account in the middle of our trial balance. I'm gonna go to the home tab font group and make that dark blue and white. Just to show that's the middle point. This is the income statement. This is our balance sheet accounts. And then I'll sum up the income statement, which will be equals the sum of the revenue minus the expenses. The expenses, the revenue will be credits and the expenses will be uncredited. So it'll subtract them by formula.