 Here we are in our QuickBooks online test company file. We started up in a prior presentation. Remembering we're in the accountant view as opposed to the business view. You can toggle between the two views by going to the cog up top, switching the view down below. Duplicating some tabs to put our reports in. Right click in the tab to do so, duplicate. Right click in the duplicated tab to duplicate. Back to the tab to the middle. Going to the reports on the left hand side. We're gonna open the balance sheet report and then tap to the right reports on the left hand side. This time the profit and loss report. Closing the hamburger, changing the range. 010125 to 06325. And let's see this on a month by month, side by side, running it. There we have it. Let's go back to the tab to the middle. Close up the hamburger, change the range. 010125 to 06325. And let's see this by classes. Give it a classy look to it. Run it, there we have it. Back to the tab on the left. We're gonna go down to the projects. We're currently working on project number two. Closing up the hamburger. Let's recap what we have done in our Excel worksheet which is a little bit more transparent. We have sent out a estimate. We did the estimate. And then we have been billing the client. We've been billing the client based on the billing schedule that we agreed upon. Even though we don't know exactly what's gonna happen on the work side of things. And then we've been doing the work over here and actually getting our cost of goods sold calculations as they happen. And then we've been using this calculation for a percentage of completion type of method to calculate the revenue so we can record the revenue based on the percentage of completion concept rather than based on our billing cycle that we're gonna have for the clients. Let's go ahead and ungreen that one. All right, so now we're moving on to month number four and we're gonna say that we're gonna do another, have our actual expenses, the material, labor overhead that we are expending this month. I'm just gonna do the same thing, making up basically some numbers here for our expenses. Let's say we have 10, let's say 11,000 this time. So it's a little bit different. 11,000, 3,000 for the labor, 201 for the overhead. I'm gonna sum that up, sum it up. That comes out to the 14201. And then we're gonna use that to figure basically what we should recognize based on our percent completion. But first, let's just record this. So I'm gonna say, all right, let's record that and record it over here. So I'm gonna say, all right, that means we're on, we're on number 415 now. Cost of goods sold is gonna be going up by the total of our material, labor and overhead, 14201 and the other side, we're just gonna say we're paying with it, paying for it, and that's gonna go to the checking account. Let's record this out. I'm gonna go to my cost of goods sold in V9 F2 plus F2. We'll pick up that 14201 and then going up to the checking account, checking account F2 plus F2 and we'll pick up that 14201 on the negative side, puts us back in balance here and now we've recorded our costs. We have not yet recorded the revenue. Therefore, on the net income, we have a loss at this point in time. Let's do that same thing over here in QuickBooks. So if I go to QuickBooks, when these actual expenses happen, I'm in project two, I'm gonna enter and expense. I'm just gonna record all of them in one lump sum. Obviously, they would probably be happening throughout the month and so on, but this is gonna happen on 415. That looks good. I'm gonna use the items to record these because that allows us to pull them over to the billable item side rather easily and I'm gonna say that we have materials. That's description over here, materials, which we said was, did I say 10,000 again? What did I say over here? What did I say? I said 11,000 to switch things up, I remember. I remember now. Now, we're also gonna make it billable. Now, the billable items we marked up 30%. And when I make it billable, I'm gonna pull it into an invoice, but not so that I can give that invoice to a client so that we can record the revenue based on our percentage method here. So in other words, my markup over here was 30%. So if this is my total cost, I can take for this month, I can take this cost divided by my total revenue and that would be the, and I'm gonna format paint this down, home tap format paint. That would be our percent that we would, of the revenue we should recognize using this concept. So I'm gonna say, all right, then I'm gonna take the 100,000 of revenue, hold on a second, that's not quite right. Let me do that again. This is gonna be this 14201 divided by not the revenue that we're gonna have, but the total cost that we then marked up to get to the 100,000. And that's the number we need. All right, now I can take the 100,000 revenue times that 18.461 so on, that gives us our revenue that we would like to expend. So I can, or need to record. Now we can do that over here on our invoice on a line by line item, marking them all up to the 30%. We should get to the same number. I'm gonna say this is job number two, then we're gonna have my labor, labor, and it was for, how much was it for? 3000 on the labor, 3000 billable, 30% on the markup, class number two. And then we had the overhead, overhead, overhead. That was at 201, 201. And there it is, class number two. And then if I pull out the trustee calculator here, trustee calculator, boom, always saves the day. So we're gonna say this is 1,400 plus 3900 plus 261.3. And that should tie out to then our revenue, 18.461. That we're gonna bill from, and we'll record that after this one. So let's do that. So I'm gonna record this. This is gonna decrease the checking account. The other side's gonna go to the cost of goods sold for the 14201 driven by these items. And these items then will be pulling into the invoice that we'll use to record the revenue side of things. Save it and close it and let's see it. Tab it to the right, just show us what's going on. Quit the blabbing, quit the, you talk too much. You talk too much. What do you just like here in your own voice? Okay, okay, here we go. So this decreased the checking account. Checking account goes down and then the other side's going to the cost of goods sold. Cost of goods sold. And there it is for April. So we haven't recorded the revenue yet. We've just recorded the cost of goods sold. If I go back on over here and I do that same thing with like a journal entry, we would say, okay, I'm gonna do it as a 430. On this end, I should have, and so I'm gonna think of revenue first because that's the first thing that comes to mind even though it's a credit to me. So I'm gonna say the negative of the revenue, which is gonna be that 18461. And then the other side is gonna go to the work in progress. Work in progress, boom. So that's what we're gonna do.