 Here we are in our QuickBooks online test company file. We started up in a prior presentation, noting 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 and switch the view down below. We're gonna duplicate some tabs to put reports in like we do every time, right-clicking the tab up top to duplicate it. As it's thinking, I right-click on the duplicate a tab to duplicate it again, back to the tab to the middle, reports on the left-hand side. We're gonna be opening up the balance sheet as that's thinking, tab to the right, reports on the left, even though it was done thinking that the computer thought really fast like computers do. But we're gonna go to the profit and loss, gonna close up the hand buggy, change the range and we're gonna say this is gonna go from 010125, let's go to 06325. And let's see this on a month-by-month breakout even though there's not much in it, thus far for the first half of 2025. We're gonna go to the tab to the middle, close up the hand buggy, let's do this one from 010125 to 06325 and hit the drop down. We wanna see this on a classes breakout, class by class and run it and there we have it. Okay, so now I'm gonna go to the first tab, we wanna go down to the projects and I'm gonna look at project number two, that's where our focus is remembering that in the past we started the project and we made an estimate and then we got a down payment. I'd first like to see this in Excel, so now we're gonna have actual kind of the job taking place costs for the job and I'd like to do that first in Excel where it's more transparent and then we'll put it into the QuickBooks system. So here's in essence what we did to calculate the estimate. This is basically our billing structure based on the estimate and now we're gonna have actual time passing and actual expenses taking place. So I'm gonna make it a little bit wider, I wanna put some columns between F and G so I'm gonna put my cursor on column G, I'm gonna select on over, I don't know like K, that's about right and then right click and we want to insert. So now we've got all these skinny columns. I wanna widen out those columns so I'm gonna select from column E to column J not including that K because I want that to be a skinny and then I'm gonna make these like the same width by just adjusting like this one. So now they're all the same width, let's make them a little smaller right about there. That's about right, okay, okay. And then I'm gonna say this is gonna be the actual, actual job progress. I think we can fit it down at the bottom here without a big issue. And so I'm gonna say this is gonna be black and white on the header, home tab, font group, black, white. And let's say we're gonna say that we actually start work on month number two. I'm just gonna say equals month number two and then we're actually gonna finish it out on month five. So two to five, we're gonna finish this thing out. And then let's think about the actual costs. So the actual costs, let's bring this out a bit. We could say break it out between materials and labor and overhead, head and then the total. So I'll try to break it out like that. And so let's go ahead and black and white this and center it as our headers and make this a little bit wider so you can see a space between these two headers. And so I'm just gonna kind of make up some numbers now for the actual expenses that are gonna take place for month number two and then we'll continue filling out this table as time passes. So we're gonna say, all right, we had month number two materials. Let's say the materials were 7,000 and let's say the labor is 7,000, 3,000 and let's say the overhead is going to be then 3018. And I'm gonna sum this up equals the sum of, there's the 13, 18 is the total. Okay, so now I have my actual costs and we can use those actual costs to try to figure how complete the job is. And that's typically what we might do in like a revenue recognition concept. We have a longer term type of job to recognize the revenue based on how complete the job is. So for example, I could compare this number to the actual revenue, I'm sorry, to the actual costs that we project, which is the 76, 923 to see how complete the job is at this point in time. So I could say this is gonna be this divided by the total cost. I'm gonna make that a percent, home tab number group percent to find it and I can add a couple of decimals and I'm gonna call this the percent complete. Percent complete, home tab font group black and white. Let's make this a little bit wider for the percent complete. I can add some more decimals then why not do that if it's wider like that. So percent complete. And then so the revenue, revenue, let's say revenue recognize or the revenue that we should recognize. I'm gonna pull all of this down so I can have a header right there. I'm gonna say just grab this and pull it down and I'm gonna grab this and pull it down. Revenue to recognize or something like that is what I'm trying to say if I spelled it wrong. That's not unusual for me because I spell stuff wrong sometimes. You may have noticed that's just because the spelling's wrong. My spelling's right. The way that people say it should be spelled is wrong. So in any case, then we could say then the revenue that we should recognize if the total revenue is gonna be at 100,000 times the 16, 9, 2 so on percent would be the 16, 9, 2, 3 and so on. So we'll get into this component of it later but if you think about this in the next presentation to actually record this but if you think about this and you're saying okay, well if I'm trying to recognize revenue as we go well then I can say this is what we actually spent. So there's where we stand at this point in time. I have a percent completion based on the total expenses to compare to what I think the total expenses will be at the end of the job. That's my percent complete and I can multiply that times the revenue that I'm gonna be receiving to think about where we should stand with regards to total revenue at this point in time is the general idea. So we're just gonna record this right now and we'll think about recording the revenue recognition component in a following presentation. All right, so home tab font group let's put some borders around this. Now if I record this with just a journal entry in our little worksheet over here I can just say this happened on 228 and we're gonna say that we had I'm just gonna put it all into cost of goods sold because all of this is gonna be part of the thing that we're making, right? The job that we're doing cost of goods sold the other side is gonna go I'm gonna say to cash check and account assuming we paid for the labor overhead and materials. In practice of course we would have multiple things that we paid for materials or we'd have payroll or contractors that were paying for the work and then we'd have overhead things that we're gonna assign to it but I don't wanna get into too much detail I wanna focus on the progress invoicing and the time recognition thing. So we're gonna say this equals the actual total here and there's the debit and credit. If I post this we're gonna say this equals the debit.