How To Do Your Own Bookkeeping | Incite Tax

Hello, my name is Kyle Nay. I work with Insight Tax in the bookkeeping department, and today we are going to go over some basics for business owners that are interested in doing their own bookkeeping. So if you're watching this and you are a business owner and you are wanting to do this yourself and not have to pay someone like us, we're great at it, but you, you want to save the money and, and you want to do your own bookkeeping, then this video is for you. So a few things that we're going to cover in this video. The first thing, we're going to go over what bookkeeping is and a high-level overview of the financial statements and kind of what the accounts are that fall into those financial statements and why those are important. And then the second thing, there's a lot of different tools available for you as business owners to do your own bookkeeping, and we're going to go over some of those tools. But one tool that we're going to focus on in this video is Excel and how to do your own bookkeeping within Excel, just because most business owners already have access to Excel and it's pretty easy, um, to, to do it if you don't have a lot of stuff going on in your own books. Okay, the last thing we're going to look at after kind of going over the basics of how to do bookkeeping in Excel, we're going to look at a template that Insight has created for business owners to do their own bookkeeping within Excel. Okay. So let's hop into what is bookkeeping and why it's important. So I really like this quote from Dee Hock. He's the founder of Visa. Making good judgments when one has complete data, facts, and knowledge is not leadership, it's bookkeeping. So lots of people, especially business owners, then you're busy. You have lots of things on your priority list and bookkeeping and taking care of the transactions and categories and stuff like that. That's not your priority. But one of the things that we tell all of our clients is that it's— bookkeeping, if you stay on top of it, it's so much more than just a historical record. It is something that you can use to make good decisions for your business. So if you know how much you're spending on different categories and how many loans you have versus how much cash you have, all All of those types of things fall into the world of bookkeeping. And having that information at your fingertips in an accurate, easy-to-read fashion will make it so that you can run your business better. And so that's something that, as hard as it is to swallow, you really want to think of bookkeeping as a way to make better decisions and have better information for your business rather than this low-priority thing that you'd never want to touch. Okay. So now hopping into the financial statements. So bookkeeping is a lot about categorizing transactions into different accounts. And these, the accounts are right here. You can see here. And the reason for this is at the end of the day, in order to file tax returns, in order to get loans, in order to see how the business is doing, then we have a couple different financial statements that are very common that come up in all different— in all sorts of scenarios. So the first one is the balance sheet. So the balance sheet comes down to what is known as the accounting equation, which is this: total assets equals liabilities plus equity. So it's called the balance sheet because the total amount of assets that you have on the books balances against the liabilities and equity that you have. So now you might be asking, okay, well, what do all of these different things mean? Maybe you're familiar with the words in general, but Let's dive into the details and some examples here. So an asset is something that you own that provides value for the— for your business. So some easy examples here: cash, inventory, equipment, land, vehicles, buildings. All of those things are assets that you own and have in, in your business. Okay, so that's one side of the balance sheet. And then you have your liabilities. So liability, anything that you owe to someone else. So The 2 most common ones, you have credit cards, loans, or notes. So you can think of mortgages, auto loans, those types of things. Okay. And then we get to this equity section. The equity section is really interesting and kind of hard to understand. But what it really boils down to is a few different main categories. So we have owner's contributions and owner's distributions. So any money that business owners are putting in or taking out of the business, that's part of equity. And then if you have other— if you're a bigger business, if there's a public entity, then stock and the money that is used to purchase stock, those types of things, that's also part of equity. And then we have something called retained earnings. I didn't put retained earnings here on the list because it's just mostly confusing to people. But retained earnings really boils down to net income, how much the company has made in the past and is currently making. And the net income is income minus expenses. So all of that flows into this equity section. And all of these things show up on the balance sheet. So a balance sheet is a snapshot of, okay, what things do I own and what things do I owe? And then how much have owners contributed to the business and how much money have we made? Okay? So that's the balance sheet. The more common and easy to understand financial statement that business owners will use probably more regularly with regards to tax returns and such, and wanting to see how much money they're making is this income statement. And the income statement is easier to explain because it's basically your income or revenue minus all of your expenses, and that gets you to your net income. Okay? So those are the 2 main financial statements. Okay, so something that we want to draw your attention to is, as a business owner, you're going to— this matters to you a great deal because you pay taxes on your income as a business, whether it flows through to you or whether the business is set up as its own entity that gets taxed directly. The way that that works though is that you get taxed on the business's net income. So all the income minus the expenses, that net income, this is the amount that matters on the tax return to determine how much taxes you are going to owe. And so again, all of it comes down to getting this number accurate so that you're paying the right amount of taxes. We don't want you paying too much. We don't want you paying too little. it's important to make sure that you're paying the right amount. And again, that all comes down to having your books in order so that you can have the right, all of your income and all of your expenses accounted for to have the right net income. So something that helps with this just as you're getting into how to keep things organized and get all of this information set up is for your business, it is really helpful And we strongly recommend that you set up a separate bank account for each business that you have. So have a different bank account and also have a different credit card account so that whenever you're spending money or receiving money for that business, it's so easy to keep it if it's all with its own business account. So lots of times business owners love to commingle their personal expenses with their business expenses all on their personal credit card. Man, that gets really hard for you to identify all the transactions that you should be including in your business. But again, if you have your own bank account at the end of the year, if you're doing all of your— if you're categorizing all of your transactions in order to file your tax return, then if all you had to do is pull, hey, this is the bank account and this is the credit card account for the business, these are all the transactions, and then you just know very easily these are all business transactions. So we highly recommend that, makes it easier for everyone. So if you don't have your own business checking account or credit card account, pause this video and go do that now. Okay? So now let's talk about some of the different tools that are at your disposal to do books. Now there are so many different softwares out there available for you to do your own bookkeeping. These are just 3 of the bigger options that are available to you, so I'll just go over them briefly. So we have QuickBooks Online, QBO, Wave, and then we have Excel. So this top row kind of shows the pricing for each of these. QuickBooks Online has a bunch of different packages. Most of the time, if you're going to do QuickBooks Online, you can, you can get away with using this $30 package. You're going to be able to categorize things, you're going to get reporting, you're going to be able to have you as a user, and then you can have an accountant user. Basically all of the stuff that most business owners need, you can get with that $30 a month package. Now, the nice thing about both QuickBooks Online and Wave is that they both have an automatic transaction download, meaning you can log into your bank account within those softwares So let's say I have a Chase account, then I could use my Chase credentials, log in, and then from there on, all of my Chase transactions will automatically import directly into QuickBooks Online or Wave. So it saves you a lot of time rather than having to go track down transaction reports from Chase. They're just going to be in there ready for you to categorize. So that is something that's really nice about both of these. With QBO, you get a little more advanced reporting, and there's more integrations with external software. So there's like 400+ programs that you can integrate into QBO and feed into it. So if you're a business that is scaling fast or using a bunch of different softwares that you want to feed in, maybe you have a software that you use to track sales or something like that, or products, then there's a high chance that there's some sort of integration that can automatically go from that software into QuickBooks Online. But the reality is many business owners, if you're doing your own books, you're going to fall into an area where if you want an actual accounting software, Wave, you can have a free account. You get the automatic transaction download. You get reporting that is sufficient for almost all of your needs. And there's only integration with Google and PayPal. But, you know, most people don't need the integration unless you're an accounting firm like us. It's not going to matter. So if you're looking at between these 2, Lots of times Wave is going to be a good choice for you to just do your own thing because it's free. There are options to add services with Wave that cost more, like payroll and such. But similar with QBO, then there are a bunch of different add-on services that are not included in this startup fee. If you're going to be scaling or having an external bookkeeper or stuff like that, QBO can be— it's more well-known. But Wave is a great option that's free if you want to do an actual accounting software. Now we put Excel in here because again, we have a lot of business owners that already have access to Excel. They're familiar with it. You don't have to worry about different, like learning how to use a software necessarily. So the good thing about Excel is, is the familiarity and lots of people do their personal budgets in Excel and stuff like that. So we wanted, we wanted to have this video in here to talk about Excel just because again, lots of people have voiced interest in how do I do it in Excel? Can I just do this really fast? Not worry about having to connect a bank account to Wave or anything like that? And the answer is yes. It's a lot more manual, but this video is going to be for you if you want to continue to learn how to do it in Excel. Okay? So moving on. If you have chosen that you're going to do your own books and you're going to do it in Excel, okay, this is where we're going to hop in and go through some steps that you should be aware of how to do it. Okay, so step 1, you need to create some sort of template in Excel. Um, a template should include, uh, 2 different tabs. Um, the first one, a tab for summing income and expenses by category. So you want some sort of— it's basically going to be like a financial statement, or like, this is, this is all of the expenses that I've had that are categorized to this. Okay, so you need some sort of tab that's going to sum things up. Otherwise, you're going to have to have all the transactions, and then when, when your tax accountant asks, well, how much did you spend on office expenses for the year, then you would have to individually add up all the things. So you're going to want to have some sort of tab that automatically does that for you. It will save you time. And then, um, you want a tab for categorizing all your transactions. Okay, so on the tab for transactions, we recommend having a formula that ensures that your category that you've listed next to the transaction matches one of the categories listed on your summary tab, just so that you're making sure that you're not adding a bunch of different random miscellaneous categories, but that you're sticking within the categories that are available to business owners to use. Okay? It will just keep things cleaner. So one thing that we do have is we do— if you are watching this video and you want to do bookkeeping in Excel, We have made a template for you that we're going to dig into a little later. So you can click— there should be a link in the description of this video for this template that we'll go through later that's actually made for you. All you have to do is add the transactions in and do the categorization, but everything else is done. Okay. But the first thing is track down a template. There are a bunch of templates made out there, so you can Google one if you don't want to use ours, but find some sort of template or make it yourself. So that you can say, okay, this is what I'm going to use for bookkeeping. Okay. The second thing, when you have a template, when you have a workbook that you're going to use in Excel, you are going to be in charge of downloading the transactions from your bank. So you need to do this for all of your business accounts. This includes the bank accounts and also the credit cards. You need all of the transactions for the year to make sure that you're capturing everything. So we recommend, because you're going to be doing your bookkeeping in Excel, Most financial institutions are going to have an option to download your transactions straight into an Excel or CSV file. There are too many to show how to do that, but most of the time you can either do a statement in Excel or you can do a transaction history. And if you hit download, then it will give you an option of what type of file format you want and just choose the Excel option or CSV option, and that will be great. Google is your best friend for almost everything. Uh, I guess ChatGPT is, is going to be the real best friend coming up, but Google or ChatGPT, um, to see if you can't figure out in your financial institution portal. Um, and then if, if that doesn't work, then go ahead and you can contact the bank and see how you can download the transactions in Excel. So that's step 2. So step 1, create the template. Number 2, download all the transactions into Excel. So step 3 is just going to be categorizing those transactions within the template. So you're going to copy the downloaded transactions into your bookkeeping workbook, and then you need to have some sort of column that's for the category. So you're going to go one by one through each transaction and you're going to assign a category. And we're going to go through an example of how to do this, but like if you have a transaction $55 to Walmart because you were buying supplies for the office, like plastic cups or something like that, then you could have Walmart, the amount, and then have a column for the category, and you would say office expense. So as easy as that. And you would just go down the list. Again, you want to make sure that you're using the same categories for different things. You don't want to have 150 different categories with slightly different names. You want to make sure that you're using similar name— the, well, the same names for the different categories so that things stay clean and well organized. Um, one thing is that you want to make sure when you're getting the data that, um, when you have withdrawals from the bank account, it's going to show as a negative number. And when you spend money on the credit card and you download it, lots of times those are going to show up as negative numbers as well. It just keeps things cleaner and easier to to sum up safely if you switch the signs of the transactions to be positive so that you can categorize and then have things listed out nice and clean. Okay? So before we go into the actual template, we have a lot of questions from business owners that are doing their own books with regards to like very specific categorization questions. And so we're going to go over just just a few of those questions that we see quite a bit and some issues that we see when customers do their own bookkeeping. Okay, so the first one, loan payments. If you have an auto loan for your business and you're making payments out of that, let's say the, the payment is $200 a month just to keep things simple. Many business owners want to call that whole $200 some sort of expense, but the reality is That only a small portion of that $200 is an expense. The rest gets ignored on the income statement because let's say $180 is, is reducing the principal of the auto loan and $20 is the interest expense. So that $20 is the only part that, that you mark as an expense. The rest is just reducing the loan. And so you want to be very careful with regards to that, that When you're making loan payments, you only get to categorize on your income statement the $20 or whatever portion of the interest expense that is applicable for that payment. Okay. These next 2, these get really confusing and it causes a lot of frustration with clients as we get into it. But it's owner's contributions and owner's distributions. So owner's contributions. This basically is money that you are putting as the business owner into the business. This includes any transactions that you are paying for using your personal funds. So let's say that you forgot your business card at home because you're really good and you have a business card, but you accidentally forgot it and you are buying, let's say, some tools from Office Depot for a job. You use your personal credit card to buy those tools. That is okay. You can still deduct that as a business expense. That's going to be 2 different things. You're going to have an owner's contribution. Let's say the tools cost $50. You're going to have that owner's contribution of $50, and you're also going to have some sort of expense, like let's say tools or small equipment for the actual cost of the tools. So you want to make sure that you're, you're tracking down all of those types of things that you're using on your personal card or personal bank account, because all of those transactions are owner's contributions. Now, the flip side is the owner's distributions. So this is any transaction that— anytime that you are pulling money out of the business, then that's a distribution. So this includes any personal transaction that you are paying for using business funds. Lots of customers have a hard time with this. We'll see them like, let's say that— A gym owner is buying their dog's food on their business card, then there's an assumption that, well, I paid for it using my business credit card, that makes it a business expense. Like, we should categorize that. But the reality is, just because you're using business funds to, to pay for a transaction like dog food, that doesn't actually make it a business expense that's deductible on your tax return. That is an owner's distribution because you're paying for a personal expense using business funds. So those things just get categorized as a distribution, and they don't show up on your income statement because it's not actually a deduction on your tax return. And so just be aware that, again, just using business funds does not make something a business expense. If you're paying for anything personal, that is going to be a distribution. Now, that being said, we— there's some confusion around payroll versus owners' distributions versus the payment of contractors or 1099s, 1099 contractors. So owners can be receiving a wage depending upon the different entity type that their business is. So if you receive a W-2 from your business, and you should be receiving a W-2. Talk to your tax accountant if you have questions about whether or not you should be receiving a W-2 as an owner from your business. Then you're going to have times that you're getting paid as a payroll expense from the company, and that is separate from an owner's distribution. So if you are on the payroll and you, and you have to receive a salary from your business, again, that depends upon your entity type, then there are going to be times that you're taking money out of the business, but it's for a payroll Not for owner's distributions. In those situations, you want to have an account on your, um, on your category list that's owner's wages so that you're, um, making clear this amount I got for owner's wages, and then these, these amounts were for distributions that were, uh, outside of the wage. Okay. And then if you have other employees that you're paying, then those types of expenses and costs would be under normal payroll. And then you have contractors. Contractors are not official employees of the business. They don't receive W-2s, they receive 1099s. You want to make sure that you keep those things separate. You want to have payroll for actual employees, including yourself. If— and then you want to have an account for contractors that receive a 1099. Okay. So I know that can get confusing. Again, this is why if you ever have questions or concerns or this is getting complex, Google, use ChatGPT. If it's causing way too much frustration, then reach out to a tax pro or anyone that you know that has a connection to bookkeeping because there are bookkeepers out there that are trained to help you do this. Okay? So the last 2 common categorizing issues that we want to cover are meals and travel. This just gets a little messy and we have lots of business owners that think, well, Again, if I'm buying a meal on my business card, then that should be— that's a business expense, that's a meal. But we do want everyone to know and be aware that meals are meant to have a business purpose if you're trying to deduct them on your tax return. So some common situations where the meals are included as a deduction, you have meals for meetings, meals while traveling for work, Or snacks, or drinks, or things like that that you purchase for employees. Like let's say you buy Pringles for the office, or something like that, or donuts for the office. So all of those types of things are meals that you can deduct on your tax return. Most of the time you get 50%. There were a couple years in the last several years that you got the full deduction, but most of the time you're gonna get 50% of the meals on your tax return as a deduction. But you wanna put the full amount, and then your tax pro will take care of the rest. The next thing is travel. We want you to, to be able to have fun and take advantage of traveling and be able to write off as much as you can. So just be aware, in order to write off travel as a business expense, the trip has to be mostly for business, and that is measured in days. And so if you're going somewhere for a conference, let's say you're going to Hawaii. My father-in-law just went to a conference in Hawaii for his work. And he, he was there at the conference for 3 days, and then him and his wife stayed an extra 2 days because they were in Hawaii. Why wouldn't they? Because they spent 3 days actually going to the conference, attending the courses and stuff like that, then that trip is a business trip and they can write off those— a lot of those expenses because they were traveling for business. You just have to make sure that most of the of the time, again, measured in days, not, we don't have to get as minute as minutes or hours or anything like that, but most of the days have to be for a business purpose. And then that's gonna be something that you can write off, okay? This is a lot of information, but those are some of the most common categorizing issues that we see. So now that being said, let's hop into the template that Insight has created that you can use if you so desire. So if you are gonna use Insight's template, The way that you have to do it is you have to make a copy. So you come up here, make a copy, and then you can you can save it to your drive. This is a Google Sheet, which is very similar to Excel. It has a little less functionality, but it's a free service, which is great. And then from there, when you make a copy, you can actually download your copy and do it within Excel. So you can go to download and Excel, and then you will have. This file that you can use in Excel, or you can just use it in Google Sheets. But again, you have to make a copy because if you just try to use Insight's direct template, it's going to say you don't have access to edit it because it's the template. We don't— we can't have everyone accessing how to edit it. Okay, so there are 3 different tabs here that we're going to go over. This first one is the Financial Statements tab. This tab is built to list all of the different categories that you can use to categorize your transactions, but then it's also built to sum up all the revenue that you have, sum up all the expenses that you have, and then show you your net income or loss up to date according to the transactions that you have. All of these are formulas that you don't want to edit because they are pulling from this transaction list. They're pulling from this column right here, and they're matching to the category based off of right here. Okay, so again, these are, these are formulas. We put a little note in here, don't edit. And it's going to just automatically take in all the information that you put in the transaction list. So there's the income statement accounts, the revenue and the expenses, and it's going to show you the net income and loss. And then we have our balance sheet accounts. The owner's draws, those are actually— again, if you remember, the balance sheet is assets equals liabilities plus equity. These owner's accounts are equity accounts, so they show up on the balance sheet. And we want to have The total, we want to have the net amount of either did you contribute, and if so, how much, or did you have a net distribution, and if so, how much? Okay. The other things is at the end of the year when you're getting ready to file your tax return and giving your information, or maybe it's not at the end of the year, if you're getting a loan or something like that and you're having to provide financial statements, then whatever you need, then You'll have your income statement up to date. You just need to make sure you have all the transactions for the period that they're asking for. And this will be your income statement from here to here. But then for the balance sheet, you just need to have the— this distribution contribution amount. And then you want to put the balances of the bank accounts, credit cards, and any other loans and stuff like that. Now, you might have inventory or equipment or some bigger assets like an office building and things like that. If you're getting into that territory, I recommend either taking some basic bookkeeping or accounting classes or hiring a bookkeeper at that point to make sure that things are correct. This is only going to be good for you to do on your own if things are pretty simple and you don't have as much of that stuff to take care of. So that's what this tab is. These ones have to be manually entered and then the rest of them are all formulas. So now let's hop into the transaction list. So we have some important notes on here. Just to make sure that if you're using the template that it's used correctly and to your best advantage. So the first one, when copying transaction data, you want to only insert the data into these columns: the date, description, and amount columns. The columns in red are formulas, and we put a little note here as well. You don't want to edit these because they're, they're changing things so that the template works correctly. Okay, so you want to avoid changing those. But you do— if you have your transaction list, then you want to just copy the dates, paste into this column, copy the descriptions, paste into this column, and copy the amounts, paste into this column. Okay, if you ever accidentally paste over one of the other columns that you shouldn't have, Ctrl+Z or this button undo. It's the best thing in the world to be able to just be like, oh, I messed up, let's undo that. Okay, so another thing to be really important to be very aware of is you are not going to categorize if you're using this template or your own template in Excel. You do not need to categorize transfers between different accounts like credit card payments or transfers between bank accounts. The reason being, the purpose of this categorization is to take transactions and assign it something on the income statement or an owner's contribution or distribution. Things like transfers between accounts or credit card payments, unless they are interest payments on a credit card, the actual transfer is not hitting the income statement. It's just taking cash from one spot and moving it to another. That's not going to show up on your income statement. That's just moving cash around. So you don't categorize those. You can just delete those transactions or you can leave the category blank in this template. For this template specifically, expenses and all transactions should be listed as a positive sign. And so again, this column is taking all these numbers and just doing the absolute value just to make the financial statement make more sense. Instead of having all of the expenses show up as negative numbers, it's showing as positive numbers so that you can see total expenses you had $1,900 in expenses. So again, that's specific to this template. It doesn't matter if in other templates if you're using negatives or such. If you need to add a different category than what is listed on here, that is completely fine. All you have to do is add a row. It's easier if you do it in the middle of different— of the different categories, and you can right-click. There's different ways to add this, but you can insert row above and The great thing about this is if you do it in the middle, then the new thing that, the new row that you've added will automatically be included in the summary. And you could add new account categorization to add different things. Now we do want to caution business owners to be careful not to add way too many different accounts. Now this is already quite a few accounts. So there are a lot of different things that can fall into these 40 different expenses. It gets overwhelming if you get too detailed with your bookkeeping, and then you and then business owners stop doing it because it's overwhelming. So it's cleaner if you just use the the ones listed here. But again, if you ever need to add more, that's okay. Just add it to the financial statement tab, and then it will work in here. Okay, this one is a weird one. But if you have business expenses that you paid using personal funds, then you want to add the transaction twice. The reason for this is that we kind of went over this earlier in the video, but— and we'll have a specific example here that we'll go over in the future in just a couple minutes. But you need to have one of the lines that's marked as an owner's contribution, like it says here. And then in the second row, you'll apply the correct expense. So like in the example we talked about earlier, if you bought tools using your personal card, but it was a business expense. You'd have $50 that was marked as an owner's contribution because you paid for those tools using personal funds. You contributed those funds to the business. But then you'd also want $50 to small equipment or tools as an expense. So you'd have to have both of those lines. So if you're going through and adding transactions from your personal card or your personal bank account that were business expenses, then you need to add those twice. And the first time in each of those instances, you have the category as owner's contribution to make sure that you're capturing the contribution part, which is going to be beneficial to you, and also the expense, which is also going to be beneficial to you. Okay? So now let's hop into some examples. So these were transactions pulled from a bank feed. You can see that we copied in the date, we copied in the description, we copied in the amount. And then over here, honestly, as you're doing it for the first time, if it was Walmart Supercenter, then you could come over to here, copy this, and just paste it over. Now we created this formula over here that says, let's say that you're typing in and you just put supply. What this formula is going to do is it's going to say no if you put some sort of category in here that does not match an account on the financial statement tab. Okay. And the reason why that's important is you can see right here, this supplies is marked as zero. But when I change this to match, then it pulls in the amount. And that's what makes your financial statement work so that you don't have to manually add up things. It will just do it for you. So if you've added a category and this says no, then there's an issue and you need to make sure that this matches one of the accounts on here. Okay. So Del Taco, this is meals. R&R, automotive repairs. We have an auto expense repairs category. Gas, auto expense fuel. Now we get to this. This is a payment for a credit card. Now I have 2 options at this point. I can leave this and just leave the category as blank because that will not pull into the financial statements, which is just fine. The other option is just to take the transaction and delete the whole row. So if you're like me and you don't like the blanks because it looks, it doesn't look as clean and as tidy and it makes it seem like you have something that you left undone, you can delete it. But again, you can just leave it blank if that makes you happier, whatever tickles your fancy. So then we have a deposit from Stripe, that's income or sales. Now we have this one on here. This is Corner Canyon Academy. This is a, A preschool that has gone through the business account. It is set up as an ACH through the business account. Now, daycare, as important as it is, is not a business expense 99% of the time. And so what we're going to do is we are going to have this marked— sorry, I didn't need to add that row— as an owner's expense. Distribution/draw, I think, is the account. Okay? So this is an example of an account that— of a transaction that was personal in nature, but we paid for it using business expenses. So that is something that will show up as an owner's distribution. And instead of showing up as an expense here, it's going to show up here in the owner's distribution area on the balance sheet. Okay? The rest of these are pretty self-explanatory. Now, let's say that I was adding a transaction that I paid for using the business funds— using personal funds, I'm sorry, that was business. So let's say that this one was one that I added myself from my personal credit card statement. Then I would want— I'm just going to delete that so it looks good. I need to add this twice. Because this was paying for the internet for the business, but I did it on my own card. Then this first line, I'm going to mark it as an owner's contribution. And then the next line, I'd come in here and I believe we have on our template, it's office expense/internet. And so I'm just going to pull that over. And that is an example of having a transaction that you're adding manually from your personal ones. In order to get credit for both the contribution and the expense, you need to have it on there twice. So you can see that now we have the $85 as an expense, but then we also have the $85 contribution. That is so important because that's going to give you the best tax result. Okay. So those are some examples of transactions. Now, again, Everything can be a little overwhelming as you're doing this. We have created this category guide tab that is simply to list all the accounts that are listed on the financial statement tab. And it goes through, gives a description of the accounts, and some— on some of the more common ones, then it's going to give an example of vendors that you can see when you're doing transactions. Because lots of business owners will be like, okay, well, this makes sense, but How do I categorize this transaction? How do I categorize this one? Well, this will help you to kind of know where to categorize what. The good news is, at the end of the day, many of the transactions that you're categorizing, it's not going to matter whether it's coded to janitorial or, um, let's say office expense. Like, if it's— if you're coding that because it's something for your office, it really is not going to matter on your tax return. If you do office expense versus janitorial. It just won't. So the accounts are there for the most part to keep you organized, to help you know where your money is going as a business. But don't kill yourself over the individual account, individual transactions, and where a $25 transaction should be coded. At the end of the day, most of the time, it's not going to make a huge difference because— as long as it's a real business expense, then it will be accounted for. And that being said, you do want to make sure that you're paying attention to these ones that we've called out specifically. Loan payments, that you're only doing the interest and that you're accounting for contributions and distributions and meals and travel correctly. As long as you're doing that, then it's going to be okay. And if you have questions, then contact a bookkeeping or an accountant professional. Okay, so that is what we have for you. Hopefully this is something helpful. This is just here as a tool if you choose to use it. But good luck if you're doing your bookkeeping in Excel, then it's a great tool if you don't have a ton of transactions going on. It's a, it's a free way for you to do your own bookkeeping without having to pay for others or pay for software or learn a new software. So that's it from Insight Tax. Thank you so much.