 and the related cost of goods sold, the expense is going up. So the new thing then is the sales tax. Now the thing with the sales tax is you can imagine the sales tax, people get confused on how the sales tax is supposed to work because they start to pay sales tax and they say, well, why don't I have a sales tax expense account on my income statement? And the reason is that in theory, the sales tax is being imposed on the customer, not on you, the business. Therefore, you shouldn't include sales tax in revenue. In other words, you can imagine a situation where you say, hey, look, I'm just going to record cash of $1,204.50 and revenue of $1,204.50. And then when I pay the sales tax, I'll have an expense of $104.50, revenue minus expenses will meet in net income in the same situation of the $1,100. In the same case, it would be just like, it would be the same bottom line. Why wouldn't I do that, in other words? And the rationale is that that isn't revenue, the $104.50, although you're collecting it, you're just a tax collector. It's actually not revenue and therefore shouldn't be on the income statement. We're gonna put it on the balance sheet as a payable. And then when you pay it, you're not gonna have an expense, you're just gonna decrease the payable. That's how they want to have it set up. Now, of course, that gets a little bit more complicated when the sales tax stuff is being taken care of by the Shopify store. So this is another wrinkle in our system here. So let's save it and close it and see, I'll show you what I'm talking about. And let's go to the balance sheet, run it. And we can see that now in this payments to deposit account, we have multiple items in here for we're gonna just imagine their cash or whatever or a credit card, for example, that were charged on it, that we need to put into the checking account at some point. The other side's going to revenue. If I go into revenue, let's run this revenue. And so now we've got the second sales invoice that happened and the revenue accounts are here, but it's not including the sales tax in revenue. The difference between those two, if I go back on over, is back on the balance sheet. Let's run the balance sheet. Did I run the balance sheet before? It's back on the balance sheet and it's under the payable account, payable account. Here it is, I was looking for sales tax payable, but they put it under the name of the department that you need to pay, possibly that makes it easier when you have multiple sales tax. But there it is, it's on the books as a liability because when you pay the sales tax, you're not gonna have an expense, you're gonna decrease the liability. And then of course inventory, that's the new thing, inventory went down just like before with the transaction. So inventory is decreasing and the related cost of goods sold is on the P to the L, cost of goods sold went up. The impact on the income statement is the income not including sales tax minus the cost of goods sold. And if I go back to the balance sheet, our inventory 91120 matches our sub ledger over here, 91120 tracking the quantity and the total asset value that's over here on the balance sheet. Okay, so there's that added wrinkle with the sales tax. Now, obviously if you're in like a Shopify situation or an Amazon kind of situation, the question is, are you subject to sales tax and in which state are you subject to sales tax? If you have like an Amazon, for example, then the platform itself might be responsible for a lot of the sales tax. We might dive into that more later, but that could make things easy, but some states might not have that be the case. And then the question is, are you subject to sales tax in the place of your physical location, but now you have an online location. So does that mean you're subject to sales tax in different states because sales tax is different per state? So that gets messy, but just the logistics of collecting the sales tax right now is what we want to think about because obviously the sales tax needs to be collected at the point in time that the sale happens, which now isn't going through QuickBooks, but rather is happening on the Shopify or Amazon type of level. So when dealing with sales tax, we have to take that into consideration when we're drawing the information in from an Amazon or Shopify type of platform into our QuickBooks system and make sure that we're still managing properly the sales tax. Now one way you can do that is to try to say, well, I'm going to try to pull in every transaction and create a sales receipt for every transaction, turn on sales tax within QuickBooks and let QuickBooks calculate it and so on. But again, that becomes kind of redundant. It becomes kind of tedious and it could weigh down your system because all that stuff has already been done on the Shopify to some level. And so do we really need to pull it all in again? That might be too much, too overwhelming of a job to do. So in other words, we're probably not going to use the whole sales tax widget thing down here to process our sales tax possibly, but rather hopefully use the other platform to help us to manage the sales side of the sales tax and then summarize that information in some way into our QuickBooks system in a more simplified method than trying to just pull in every transaction. Now the other issue, the last piece that we're going to talk about right now is the fact that now I've got this amount in payments to deposit. So if I think about this from a flow chart, we made sales receipts, we didn't deposit them directly into the checking account. You can imagine like a situation where you have cash, but the same thing happens with credit cards and other payment processors. That being, if you have multiple sales that happen during the day and you're at a cash register, then you don't want to put them directly into the checking account each time you make a sale because if you made $10, $5 sales, then you would have a bunch of $5 amounts in your checking account. But when you deposit the money into the bank, you're going to walk to the bank with a full lump sum deposit and put that into the bank. Therefore it's going to show up on your bank statement as one number, not $10, $5 amounts. So what you want to do is make sure that you group the deposits into your checking account in the same fashion as they will be represented on your bank statement so you can reconcile. When we pull the information in from a Shopify, we have a similar situation. If I try to pull every transaction in one at a time, make a sales receipt of each one of them and I deposit it directly into the checking account, I'm going to still end up with the same problem as we would in an on-ground store, meaning.