 Here we are in our QuickBooks Online test company file using the Accountant 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 on down below. We're going to duplicate some tabs to put reports in, which is a custom we'll do basically every time. We're going to go to the tab up top, right-click on it to duplicate it. Right-clicking on the Duplicate tab because we want two main reports, Balance Sheet Income Statement, Duplicate it. As the tab to the right is thinking, I'm going to go to the tab to the middle, down to the reports on the left-hand side, and we want the Balance Sheet, one of the favorite reports here, of course. Back to the tab to the right, let's go down to the reports. Again, this time the Profit and Loss, which can also be called the Income Statement. The P&L, I'm going to close the hamburger up top, and I'm going to change the range to the end of 2025. Let's go to 120125 to 123125, and this is where we will place our data. Running it shouldn't be anything in there. We have a nice clean report to start out with. Let's go to the tab to the left, close the hamburger, do the same thing on the Balance Sheet. We're going to go from 120125 to 123125, and I'm going to run that report. Nothing is there so far. Obviously, the financial statements are basically our end result, what we are trying to build from an accounting standpoint for our business. Let's go to the tab to the left. Now we want to think about the purchasing cycle. We're going to think about it as though we're on an on-ground kind of store, and run the perpetual inventory system that QuickBooks has designed, and then think about where the deviations are going to have to happen when we try to integrate data that's coming from like a Shopify or an Amazon type of situation. If we had an on-ground kind of system, let's follow the inventory. If I was to purchase the inventory, we may or may not use a purchase order. We might just be paying for the inventory with an electronic transfer, a bill, but let's go through the whole electronic transfer, which would be a check or an expense form. But let's go through the whole process here. First, when we request the inventory, we want to be able to track not only the dollar amount, but also the items. The way QuickBooks does that is we use the items. These would be like the inventory items similar to what you would put in like a Shopify store when your products into a Shopify store. Again, note that I'm not saying that we're necessarily going to put these items in our final system into QuickBooks online because that might be redundant. We might not need to do that, but we want to see how QuickBooks would normally do a perpetual inventory system so that we can see kind of the deviations we might make for a Shopify integration type of thing or any other kind of platform. So here's where the items are located. It's under the sales tabs. We're going to go to the products and the services on the right. Now, some of these you might have like hours in labor in here. Don't worry about any of these other ones right now. We're just going to add generic product one, two, and three. So if I go up top and I say I want a new and we're going to make inventory items. If there were inventory items, that means we're going to actually track the physical units in QuickBooks online. If it's non inventory, we're not going to be tracking the units. Now, if we were doing a full service perpetual inventory system, we would want to be taking an inventory item allowing us to have inventory reports. I'm going to give it a generic name, product, product number one. And we could have the SKU number. If we have one, we can add that. We can add a picture of the inventory and so forth if we wanted to track it, which is actually kind of cool if you're doing on ground kind of stuff. We can add it to a category so we can have groups of inventory and so on. I won't get into that in detail. Class tracking if we need quantity on hand. Now I'm going to start with zero on hand because we're going to purchase them and I'm going to say this happens at the beginning of of let's just say the beginning of 2023. Just so I make sure it's at the beginning point reorder point. This will be the point that we want to remind us to order more inventory. So then we've got the inventory assets. This is going to be the account that it's going to go to when we purchase the inventory. The description is going to be product number one and then the sales price. So this is going to be the amount that goes on our sales form. The the invoice type of form. Let's say that we sell it for $100. The income account is going to be a sale of product. So when we make an invoice or sales receipt, that's the account it's going to go to. And when we purchase the inventory, let's say we purchase them for $75. It's going to go to inventory when we purchase it and then cost of goods sold when we sell it in a perpetual method kind of similar to what would happen if you're checking something out of the grocery store. So we'll take a look at that in future presentation. And then we might have a preferred vendor who we buy the inventory from. All right, let's go ahead and save that. Let's and let's make a couple other ones kind of to match our little thing over here. So we might have another one product number two inventory product number two product two. And I'm just going to say that this is going to be quantity on hand to zero beginning of the year that we've got this other product. Number two and description sales price. Let's say this is a $200 product and we we purchased it at a cost of 150. Let's say cost to goods sold the expense account. Same thing looks good. Let's say save and new this time. Save and new and this this is going to be product product number three product number three. And we're going to say quantity on hand is zero. We're going to purchase these January okay reorder point description. Let's say this is for $300 and we're going to purchase it for 210. So we try to sell those ones. You pull them into the store with $100 item and then you upsell them. Okay. No, we won't get into sales strategies here, but we'll say save and close that one boom. So now you've got your items here. Now when I purchase when I purchase the item, it will be tracking not only the dollar amount we spent on it, but also the units. That's what we would be trying to do within QuickBooks something that we might not be doing if using an e-commerce kind of stores. We're looking here to full service accounting system within QuickBooks that we will deviate from with Shopify. So let's say that I would then go up and I say that we're going to buy the inventory. We would buy it possibly starting out with a purchase order of requests for the inventory and or we might just buy it basically with an expense form and electronic transfer or something like that. But let's do the full thing. Let's say we're going to say it's a purchase order requesting the inventory. Let's say it's going to be requested from vendor number one, which I just made up event. Let's just make up a vendor vendor vendor for P one for product one. So we're buying it from vendor P one. Okay. Generic. Can't you come up with names? No, I'm not that creative. It's going to ship to you. It's going to come to our store. If we were doing it internally, that would be the idea here. So we're going to say the purchase order. Let's say this happens on 010 low. No, we're on 12 1231 to five.