 In this presentation, we will set up a bank account within our general ledger. Get ready because here we go with zero. Here we are in our not-for-profit company dashboard. Now there's a couple different ways we can go to set up our bank account because the bank account's a little bit special and that you could have bank feeds with the bank accounts. Now note, we're not going to be setting up bank feeds for this practice problem. We do have a course on bank feeds if you'd like to check that out. But what you really want to do is get an understanding of how the not-for-profit works so that then if you decide to have the bank feeds, you can then take that information that will flow in from the bank and allocate it properly to wherever it needs to be allocated to. If you don't have that understanding, then the bank feeds are going to end up as kind of a mess because what will happen is you'll get a lot of transactions from the bank but you won't know how to categorize them properly and therefore it's going to end up in kind of an overwhelming mess type of situation unless you know how to categorize those transactions. That's what we're focusing in on here. One way to get there is to go to the chart of accounts. It would be the standard type of way for any type of account that you were going to be adding by going to the accounting dropdown and then going to the chart of accounts. We're going to be going to the chart of accounts because of course we will be adding the accounts of the bank account. Now the chart of accounts here is going to be organized by code and then it's going to be organized in essence by type. So you want to think of the chart of accounts as being basically balance sheet and then the income statement or in other words, assets, liabilities, equity, income, then expense and then broken further down into things like subcategories such as the liquidity of the assets, the more liquid the assets such as cash being on top than the current assets and so on and so forth. So we're currently in the all accounts tab. Xero has a nice little feature here where they actually break out the chart of accounts by categories so you have the assets, liability, equity and so on and so forth which is kind of nice. Normally when you add a new account you'd be going to the add account here. However, the bank account because it's special has special needs including the bank fees if we choose to set those up has its own little item where you're going to set it up here as add the bank account. Now also note when you add the bank account this would be anything that would have like an institution, financial institution where you could have bank fees. Credit cards in other words would also be added with this add bank account item even though they're liabilities which is a little bit funny but it works because it's going to go through the same process. It'll flip that account to be a liability if you have bank fees because it'll be a negative amount so just something to keep in mind. It's a little confusing for me at first but it actually works quite well. Now the other way you can get into the bank feeds is to the accounting drop down and then go into the bank accounts. So you go into the accounting and then into the bank accounts and you'll get to the same kind of set up screen. Now it's going to ask you to set up the bank accounts to connect. You don't have to do the connection but you have to go through the kind of startup process of it just to set up a bank or cash type of account. So we're going to go ahead and add a bank account. I'm going to say this is going to be the bank account. I'm now going to choose a bank even though I'm not going to use the actual bank so you can choose the bank even if you're not going to make a connection to that bank and then you could choose to make the connection at a later point in time. So I'm just going to say chase here. Automatically import your Capital One transactions. I'm going to say no. I'm going to go ahead and actually I chose Capital One. So Capital One and I'm going to say skip that. I'm not going to be importing the transactions and then next item. Account name. I'm going to put the account name as just the checking account. Now you might want to put like the last four digits number or something like that if you want to be able to tie into it or the name of the institution. If that would be easier to go with the more checking if you have multiple different checking accounts you're working with. It could be nice of course to have some kind of distinguishing factor like the last four digits of the social security number but the bank account number or something like that. And then the accounts type. I'm going to say it's going to be the every day. I'm going to go with the every day account number. I'm just going to put numbers here. Obviously this isn't going to tie out. I'm going to put a number here. This is not the number of the chart of accounts. They're looking for the account number for the bank account. So you can put the actual bank account number but if you don't want to you need to put some number there and you should be able to push forward with it. So add another Capital One US. No, I'm going to go ahead and continue then. So we're going to go ahead and continue. And there we have it. It's now set up. Now of course the green button says get bank feeds. We're not going to be doing that. What I want to do is go back to the chart of accounts now. So if I go to the accounting drop down and we then go to the bottom item which is the and then the chart of accounts not the very bottom but pretty close to the bottom. It's like in the last item there. We're going to go into the chart of accounts. Then we'll see at the top of the chart of accounts the checking account. So here's going to be the checking account and that's going to be a bank type of account which is of course a type of an asset type of account. Now we didn't assign a number to it. We might want to go in and sign like a code number to it which is basically an account number. So to do that I can click on the checking account here and assign a code. Let's just make it 1 1 0 0. And then I'll go ahead and save that. So I'm going to save that. And the code number note you kind of want to keep in line with basic accounting number type of activities here which is basically the checking account and starts with the ones and then the accounts receivable with a 1 2 and then a 1 3 for the other asset type of accounts and then liabilities are going to start with 2,000 and so on and so forth. And you want to have space between those numbers or else it will get messy. You want to make sure you have a good grouping between the account numbers. So now we have our checking account set up. That's going to be our basic account. We're going to be needing to be entering our transactions in our not-for-profit organization which we will continue to do in following presentations. That's it for now. Let's get out of here.