 So here we're imagining we're in balance here. Let's now do the the same kind of report for the following month And we should basically be in balance there as well. So I'm going to right-click and duplicate And then let's do another bank reconciliation report And so I'm already set up, but I'm just going to change the date going to September 1st to September 30th and then I'll change the the balance to the September balance, which is 52 308 80 52 308 point eight zero update and Notice again, we have the beginning balance. This is the balance that's on the books So there's the 50 308 80 and there's no outstanding checks or payments there's our adjusted balance and That matches of course what we just typed in there for the statement balance. So once again, we are in balance We don't have any outstanding items, which should be the case going forward. It should be quite easy Now again, if you find a place where you're out of balance say this wasn't the case This was out of balance Then you could run the report for the prior bank reconciliation and say, okay Was I in balance as of the prior bank reconciliation? If you were in balance for the prior bank reconciliation, then you could basically check off and say, all right That means my beginning balance was correct as of that point in time And now I can check my additions and my subtractions here And if it's on the bank statement and tie that out over to what is on the book side of things to see if I'm If everything matches, right? So to do that, let's go to the first tab Accounting drop-down and then you can go into the bank accounts and we're working in here in the checking account so we'll go into the checking account and You'll recall that this side of the transactions are the transactions that we have entered into the system These are the bank transactions that pulled in from the bank and the reconciled tab is the one where everything on the bank Side was on the left and everything on the right was on our side now in our case All the stuff on the right on our side was pretty much not there. It was not existent because we hadn't been Putting anything on our side. We've been constructing our side. We've been constructing the books from the bank feeds However, if you're doing a full-surface accounting system You would enter the accounting stuff first on our side and then be matching it to what pulls on to the to the bank Side of things and in that event if you're doing a full-surface accounting system It's likely that you would end up with outstanding checks and outstanding deposits which would be our reconciling items on our bank reconciliation they'd be showing up in This area so So that's the that's the the general idea now if anything was off then you could go into the account Transactions and you can look at anything in here that says that it's not reconciled if it was read and said it was Unreconciled at this point in time then that would be something that we would expect is not on the bank statement We'd say okay. It's it's not over here. That doesn't necessarily make it wrong That just means that's gonna be one of our reconciling items if we had reconciling items like that like a check That we wrote but has not yet cleared the bank Then we can check we can double see we can double check to see that that check does clear the bank By seeing if it clears the bank in the following month if it does Then that check is valid. It's a valid check And it would still just be a valid timing difference that would be reported in this, you know reconciling item So if you have any if you have any problems, then you can go through The actual transactions. These are the detail that should be adding up to the increases and decreases So if your beginning balance is right, you can go through, you know the additions and subtractions Within here. So this is for For September so we can go down in September and just check all this off we can take and tie everything off if we needed to 4518 and We can go back over here and say 4518 and If anything was not correct, we can take and tie everything out right 3,000 here is Over here, we should see a 3,000 here right and I can so everything should be taken tied off And that's how you would have to basically reconcile if there was anything that was that was basically out of balance That's the general idea, but what I just want to point out here is Once you do that first bank reconciliation Then the second bank reconciliation should be very easy. It should be somewhat automatic And if you're constructing your books directly from the bank feeds, then your balance will be right You know tying to the bank in real time for the most part But you still want to have the concept of doing the bank reconciliation so that you can find any errors if any errors happen Through this concept of saying I want to see was I correct last time and then what is off this time by ticking and tying each of these Accounts out the beginning balance is right and then check your additions and subtractions, right? And then you can then you could figure out What the issue is and even if you are doing a full-service accounting system It still should be fairly easy to do the bank reconciliation But in that event you're gonna want to make sure that you at least check your bank reconciliation and run the report So that you're tying out as of a point in time because in that event your bank balance the balance on the balance sheet Will not match at any given time What's on your actual bank side of things because of outstanding items outstanding checks Outstanding deposits so you will need to do a bank reconciliation just to make sure That that Difference is correct, right because that'll give you confidence that your balance in the bank is correct And if you're balancing the bank is correct Even if it's not the same balances on the on the bank statement as any given time if you can reconcile exactly what the difference is You are verifying not only the bank balance But all the transactions that are going through the bank account and because we're using the double entry accounting system and because the Bank and cash is the lifeblood of the company then all the other side is basically constructing like the entire income statement So that's why it's that huge internal control we want to make sure that we're doing it and It should be fairly easy to do once you get past that first bank reconciliation