 Hello! In this presentation, we will prepare a bank reconciliation for the month of February into our bookkeeping problem in Excel, keeping in mind how that same information might be input into accounting software such as QuickBooks. We will first take a quick look at QuickBooks and then move to Excel and enter the bank reconciliation there. When considering QuickBooks, we would be going through the process of first looking at the bank statement. This will be the bank statement that we're going to be looking at both in terms of the short QuickBooks presentation and then going over to Excel. That's going to have the beginning balance, our detail, and our ending balance. We then have the detail of the additions and the subtractions in terms of deposits and checks. We're going to use that to compare to our information in the books. In order to do that within QuickBooks, we're just going to say we want to know what account we're talking about, the checking account. It's going to have the beginning balance, this from the prior year's ending balance, and then on the prior month, and then we're going to have the ending balance here from the bank statement. Given that, we'll then see a screen like this and our goal here is just to check off everything that's in our books. This is our books side of the system to what is on the bank, the bank statement. This is the bank statement side of the system and all we're doing is ticking and tying and everything out and the things that do not tick and tie out then are going to be the reconciling items. When going through this process, we have some other tick and tie outs of the deposits. These are going to be the reconciling items, the ones that don't match up. And then we have a few items if they're on the bank reconciliation and not on our books. Those are things we're going to have to fix on the book. So we'll actually enter an adjustment in this case for the withdrawals and the bank service charges, and that'll look something like this. We're in the register here and we're just going to make an entry within the cash register, decreasing cash for the 100 and put in the other side for the draws. We'll see this as we work this in Excel. And then we can go back to the bank reconciliation and check that off. We'll do the same thing for the service charges. We're just entering this into the bank reconciliation or into the register so that we can then enter it in the bank reconciliation. Again, this will make more sense as we work through this in Excel. Then we can check that off and then create the bank reconciliation. The Quickbook system has two reconciliation types, a summary and a detail. We recommend both of them, but the summary looks something like this. And we'll get into the format of this as we move into this, but basically we have the cleared items. And then this is really the reconciling items here. And then we have the get into the register balance. So we're really looking at the difference between the bank balance and the register balance, which at the end of the day should basically be outstanding checks and deposits after we make any adjustments needing to be made. Let's see that in Excel. Within Excel, we are clearly going to be working on this account here. So this is the checking account. And we're going to verify that that checking account is correct by verifying it. It's correct. We will also be checking many of the other processes because as we can see the checking account is one of the most used accounts in terms of detail and also is a major component in every cycle. So if we check all the checking account information, huge check to be checking everything else as well. We're checking it against a third party, which is a great way to be able to check in a very reliable third party that is the bank. Let's do that. We're going to go to the right to where we have our bank reconciliation process. So we're going to go all the way to the right until we see our bank reconciliation, we're taking the scroll to the right. And here is the bank reconciliation we had for January. So this is the prior month bank reconciliation that we have made the ending balance here is going to be used as our beginning information for of course February. So now we're going to go to the right a bit more. And we see our bank reconciliation for the second month, the month of February. So we're in columns EM through FE. And what we have here is we're going to have our bank statement. So we're saying that this is coming from the bank. So this is not our document. This is the bank document about our checking accounts. And it of course has the beginning balance February 1, which is the ending balance as of last month as of January 31. And then we have the additions, the subtractions and the total, then the detail of those additions and subtractions that of the checks on the left hand side. I mean deposits on the left hand side and the checks and other types of deductions on the right hand side. What we will do now is take this information and compare it to our books. What you see here is going to be our general ledger. So this is our GL from January and our GL from February. So you'll remember that we had January here and then we closed it out and then we started in February. So we have the beginning balance that comes from our GL in February being picked up from our ending balance in January. The reason we need both of these in here and not just the February information is because we need to know where we left off in January, not just in terms of the date of when we entered information, but the information that has not yet cleared the bank. Some of the information that we entered into January had not yet gotten to the bank and we need to know those because those are the items that were reconciling items in the first month. In other words, if we scroll back, I'm going to go back to the left to the January bank reconciliation. We went through this bank reconciliation, tick and tied everything out and these items, these light green items are the ones that were the reconciling items in our bank reconciliation here and here in the month of February. We hope that those have now cleared and are no longer reconciling items scrolling back to February. In other words, these items that had not cleared, which are now in yellow in January had not cleared the bank. We expect to see them over here in the bank and we need to check them off at this point to clear them out there. Then we have the current month of activity. This is all stuff that we put in the checking account as of February and we're going to check and see which of that information will tick and tie out here as well. Just a word of note here. This information at the bottom because they were checks and we combined the checks when recording them into the general ledger is in a bit different breakout because we broke out the individual checks both in terms of writing the checks to the government for payments and the payroll checks. That could be a bit confusing. I apologize for that but the ending number is the same. We just broke