QuickBooks Online 2024. Bank reconciliation month number one checks and cash decreases. Get ready and some coffee because we're going to save time with QuickBooks Online 2024. Here we are in our get great guitars 2024 QuickBooks Online sample company file we set up in a prior presentation opening up the major financial statement reports as we do every time reports on the left in the favorites right click in the balance sheet opening a link in a new tab same with the profit and loss report also the trial balance right click open link in a new tab let's check out those tabs we open tapping to the right the hamburger closing it changing the range 010124 tab 022924 tab we want to see it on a month by month side by side poor father running the report tabbing to the right closing the hamburger to the left changing the range in the middle 010124 tab 022924 tab and then changing the months on the left and then running the report on the right and then going to the tab to the right closing the hamburger on the left changing the range in the middle first a word from our sponsor yeah actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our crunchy numbers is my cardio product line now i'm not saying that subscribing to this channel crunchy numbers with us will make you thin fit and healthy or anything however it does seem like it works for her just saying so yeah subscribe hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine if you would like a commercial free experience consider subscribing to our website at accounting instruction.com or accounting instruction.thinkific.com 010124 tab 022924 tab and the drop down i feel like i'm announcing a soccer game or something here and the ball is at the side now it's in the middle okay we're going to go into the running of the reports let's go back to the balance sheet and we've been doing our bank reconciliation remembering that the bank reconciliation is basically i would say mandatory for any kind of business as an internal control whether it be large small uh or using bank feeds or not using bank feeds we're doing the first month reconciliation which has that beginning balance issue that we will be addressing at the end of the first month of reconciliation this is what the books currently say at 88, 810, 27 this is what our mock bank statement says 61 241 85 so we need to do some reconciliation and that's what we're doing at this point in time so let's go back to what we started last time the tab on the left we're in the transactions remembering that the bank transactions over here bank feeds can help with the bank reconciliation as we'll see in future section or course but it is not the bank reconciliation to do the bank feeds the reconciliation is over here even if construction the books directly from the bank then you still want to do the reconciliation uh because it'll at least double check that you haven't double entered anything or uh hadn't pulled some feed in for some reason we're in the checking account we're going to resume if you weren't resuming but was starting from scratch you would have the info in here being the beginning balance we can see as a problem because that doesn't tie out to our beginning balance over here we will deal with that later that's the first bank rec problem the date is the date on the bank statement we're not entering anything for the service charges or interest I think these are old kind of things that we don't really need anymore but are pulled in as a legacy article from prior times all the way back to the start of the desktop versions so then we have our reconciliation summary up top the statement ending balance which we just typed in there directly from the bank statement we have the cleared balance which is this formula below beginning balance payments and deposits which will give us our difference the difference between the statement balance and the cleared balance currently we've only done the deposit side of things the deposit side of things now matching out if I go back on over we're at the actually I'm going to uncheck the 25 here for now we're at the 143 70 that matches the 143 70 85 on the deposits now we're going to do all of the decreases decreases typically being the largest and most complex portion of the bank reconciliation process if your deposits are properly formatted and grouped in your accounting system so let's first just give a quick recap of the kind of decreases that we're going to have and what information the bank knows about and what they don't know about so first we have a check type of transaction if we have a check then that means that we physically wrote the check or printed it out of quickbooks recorded the transaction when we wrote the check and then had to send the check to somebody they have to receive it they have to deposit it in their bank and communicate with our bank before the bank knows about it so if we're still using manual checks that means that we're going to have a big difference between the date the date is going to be much less reliable the date in our books is going to be much sooner than the date on the bank side because the bank does not know about it until the check has been received deposited and cleared basically on their side but we do have the check number with the check which is great giving us an added level of ability to tie out what is happening even though the date is not going to be as relevant for us and of course we have the dollar amount that's what the bank knows now the bank also has the cancelled check which usually isn't going to populate in the bank like a memo area but is something that you can often go to your online banking and then drill down on so if you need to see like who the vendor is and what not or who the who the yeah who the vendor is you might be able to go to the bank statement and look at the cancelled check and see the actual check from there now if it was an electronic transfer then of course you're not going to have a check so if you're paying people buy electronic transfer you're not going to have a check but the date is going to be much more close so even if you're doing a full service bookkeeping system where I pay something in an electronic transfer enter it at the point in time the transfer happens it's still going to clear the bank between like one to three days typically so if we do a full service accounting system our date in our books will be sooner than the date on the bank's books still but they will be pretty close and likely for many small businesses at least if we're doing electronic transfers we're probably going to be dependent on the bank rather than enter the transaction on our side at all in other words we won't even enter the transaction on our side wait till the thing clears the bank and then record the transaction with the use of the bank feeds in that case those are the easiest transactions to reconcile because we're not even doing a full service bookkeeping system we're just we're just taking the bank's numbers and pulling them into our system so those types of transactions again will be the easiest the easiest things to reconcile and then we could have some transactions that are facilitated you know by the institution that we don't know about like the bank charges so the bank service charges they charge us a fee we didn't know about the fee we couldn't have entered it on our side because they didn't invoice us for it they just took it out of our account because it's a bank charge so for that we would have to enter that in our system if we didn't use the bank feeds but if we do have bank feeds turned on then we're probably going to be able to pick that up with the bank feeds the bank feeds will show that transaction will approve the transaction and that is how that will typically be recorded we also could have money that we took out physically possibly at an ATM or at an institution or at one of the bank locations right so the money that we take out would be like a withdrawal and in that case all we would see if we took out cash is the dollar amount that was taken out and the and the date we're not going to see what it was taken out for which could be a problem all right all right so that given that what we're going to do the same kind of process we're going to basically say if it's on the bank's books it should be on our books and if it's not we're going to have to add it to our books unless the bank is wrong which is not typically the case if it's on our books but not on the bank's books then that might be okay because that might be outstanding checks that we know about but the bank doesn't know about therefore their reconciling items because of that system then we typically want to be going from the bank statement to our books not from our books to the bank statement because everything on the bank statement should be on our books right otherwise we'll get confused so I'm going to say there here's the 12,000 101 hopefully our check numbers match up but if they don't bear with me it's a practice problem I tried to line everything up here but we'll go to the payments so so let's see we got uh this one uh was uh was 12,000 12,000 so this 12,000 I entered with an expense form instead of a check form so we don't have the check number but I could still tie out the the 12,000 and I can see the date is pretty close so I fairly good confidence that that's the one again if I wanted to look at the actual vendor I can I can look at the vendor here and the cancelled check possibly go into my bank account if I needed to double check it there so so I'm going to then go back on over here and say okay that one is uh checked off I maybe I'll do the whole thing here and make it green okay then I have the 1000 the 4000 now these two I'm going to go over and say hmm those are not here if I look through here I don't see those and that's going to cause me some worry that's the beginning balance problem one of those issues those are checks that we wrote last month in December in the prior accounting system which were outstanding as of last time and and now they're clearing so what do I do with those okay I'm going to deal with those later right now I'm just going to keep on pushing forward so I'm going to say all right I recognize that those are a problem let's go to the 16 000 on uh 1002 is the check number and so we'll say okay 16 16 right there I don't have the check because I entered it as an expense form okay but I'm pretty confident that's the one so I'm going to say that one is checked off 7 114 so 7 000 is here so that so again I entered it as an expense form okay so that one good I'll say and then the 6 8 9 2 on 118 1005 so there's this one and the check number actually ties out this time that is good again a lot of people are I'm going to minimize this by the way a lot of people probably are using electronic transfers these days so you're not going to have the check numbers but your dates will be more relevant in that case okay so then we're going to say that one is is gone or done or checked off let's say 72 1006 so we've got the 72 on one that's check numbers 1006 okay so that's good and then I have the 37 80 1007 so there's the 37 80 1007 1004 okay that's the check number 1004 notice over here they're not exactly in the same order and that's something to to recognize why would that be the case because on this side of things they have to put it by they're going to put it by date most often right they're going to sort their their transactions by date but the date that the transactions cleared the bank might not be in the same order that we entered the transactions on our side especially if you have check forms because because it'll depend on the people that receive the check and how long they took to deposit the check now if they're all electronic transfers again it'll be probably pretty easy because then you're probably just entering your information on your side from the bank and everything will tie out like exactly right so this this one's 1004 37 80 did I already do that one I think I did that one that one's done and then this one's let's try to do two at a time let's get crazy 12 000 and 6 20 so 12 000 here and 6 20 boom leveling it up right there leveling it up all right okay and then we're going to go back I've done those two and so and then the last one is going to be 15 000 15 000 here we go so that one has been found and I'm going to say that one's good okay now these two I'm going to say I don't find those I don't see the withdrawal and I don't see the bank service charges and if you were using bank feeds you probably would see those because they would come in through the bank feeds and then you would have to enter them from the bank feeds if you're not using bank feeds then you would reconcile either way you could have a similar issue you know with those transactions you're going to have to record them you know as they come through on the bank feeds so as of now we have these two these two that we're going to deal with later and we have these two that we're going to have to enter and then we have all of these ones that are in our books but not on the bank statement what about those those might not be a problem how can we check if they're a problem or not well we could look at the bank state or the bank account online after uh january in february to see if these cleared and if they all cleared in the following month then they're not really a problem because they're just the outstanding items they are the timing differences they are the reconciling items between the bank balance and the book balance that will be on the report that will be generated once we finish our bank reconciliation process so you can see what we're doing we're finding everything on the bank statement on our books but the stuff on our books might not be on the bank statement that's okay that will be the exact difference once this number gets down to zero okay so now let's deal with let's deal with with these these two down here so we have a withdrawal and we've got the bank charges so what i'm going to do is i'm going to say let's leave this for now i'm going to save it for later and enter those transactions in and then i'll come back and be able to tag those off so i'm going to i think the easiest way to do that is in the register so i'll go directly into the the check register and say where's that it's in the uh it's in the transactions check register close on the hamburger we're in the checking account i'm just going to go into the register and enter these directly into the register let's select the drop down and i'm going to use an expense type form because these are decreases so i'll use an expense type form as of the end of january that's what we want so the first one we had was the bank charge i could say it's what do we say chase or who's our bank i don't know chase let's say and we're going to say chase is the vendor this time and this is going to be bank charge i'll put in the memo it's going to be a payment of $15 i believe it was and then i'm going to see if quickbooks has a bank charge fee which it typically will so because bank let's see if we have bank service charge hold on a second bank service i know it has one there it is bank fees and service charges so it's a sub account of something on the general ledger but there it is let's use that one it's a sub account of general business uh expenses okay so i'm going to say that one's okay and then that should allow me to add the bank charges so i'm going to say all right let's save that and let's do another one for the withdrawals so this one the owner took the money out so i want to put owner as a vendor this time and that's because it's not really a vendor but we can only have a vendor or a customer so i'm going to say vendor because the money's going out and then what this was a draw now here's where the issue is it's a payment i know what the amount is the amount is 150 150 dollars if they took that out of an ATM or of of the bank then the question is what was it for and hopefully what you'd like to do is say uh and if you're a bookkeeper you'd like to try to manage with your clients and say hey look don't take money out unless you're taking it out as a draw it's for personal use you're going to take it out and then you're going to use it to go to disneyland or buy your personal dinner or go to the movies whatever you're going to do what you don't want to do is take the money out and then pay for business stuff with cash why why not because there's no audit trail then because we as the bookkeeper don't know where to put it on the expense side of things because we see the money coming out but we don't know where it should go now note that this idea of an audit trail for taxes if if we're thinking about taxes in the united states on the expenses if we're looking at the income statement you have income minus expenses expenses are deductions for taxes everything's flipped on its head tax the deductions are good we want net income to be low on the tax return so we pay less taxes so that means that the expenses are good if you have something that's a legitimate expense you want the audit trail because if the government came back and audited you we would like to say look here's the money that was electronically paid to whoever the vendor is uh and it's a legitimate business expense right so so that's why for any legitimate business expense you would typically want to write a check you would typically want an electronic transfer so that you have a clear audit trail trail of who you have paid if you're paying cash for something you don't have an audit trail you have to like save receipts like the old days you're gonna have to have a bunch of receipts that you can then make a copy of and put into the system but that's not the ideal way to do it now sometimes cash is still king like if you're tipping people and whatnot maybe the cash will go a little bit longer some people like doing transactions in cash so if you still have to use cash fine but the general rule is i would like to not use cash and just use electronic transfers and checks for business stuff if possible and therefore any draw of cash i can assume will be a draw from the owner for personal use in that case it'll be part of the equity decreasing the equity account over here as a draw instead of going to the income statement as an expense so we'll show both methods here i'm gonna imagine it's an expense so we're gonna say it's an expense i don't know what it was for i'm gonna put it into miscellaneous expense so other miscellaneous expense and then next time we'll show it as a draw and we'll look at the difference between those two things so let's go ahead and save it so we have recorded new transactions that we knew about now because of the bank reconciliation if i go to my my balance sheet my bank balance has now changed if i go into the uh the transactions we should have then the bank charges and the expenses that we put in place let's go back let's go to the income statement where do they show up on the other side of the transaction we should have bank fees that are now under business expenses i'm not sure i need the subcategory of business expenses so i might remove you know i probably if i have time would remove that we might do that later and then the other side we put into miscellaneous expenses which they put down here into other expenses which it may or may not belong in other expenses a lot of people dump stuff into the miscellaneous expense that are normal business expenses but they have no other place to put it so again i'm not sure that categorization down here would be appropriate but if you properly used it that might be the way to do it because these would be expenses that we don't know where they go can't categorize them therefore they're down in the you know in the other area but there they are so that's that and now if i go back to the first tab and we go back into our transactions and reconcile we can continue with our reconciliation we will resume the process closing this out don't show don't show me this again i told you once i've told you once i told you a thousand times so this is going to be then 15 and 150 we should be able to find those and check them off here they are the 150 and the 15 done we'll x those off these have been found boom all right so now we have everything that has been found except for these two so if i look at if i look at my balance now at this point in time i'm going to say okay what what is happening here we've got the we've got this one one one one one eight two nine that should be there minus the one thousand minus the four thousand is going to give us the one oh six eight twenty nine and that's what should be over here now one oh six eight twenty nine because i have the that five thousand that's messing me up right now so i have the five thousand messing me up there and i have uh i have this 30 000 which is messing me up for the beginning balance which is showing on our side as a deposit instead of the beginning balance and it's showing as 25 000 notice that those two things net each other out we'll talk more about it later but if i if i was to say hey hmm i'm off by 25 000 right here i don't know like if i didn't know what was going on i might say well i don't know what's going on but if i just click off that 25 000 boom the difference is down to zero i'm good to go and you could kind of do that uh if you if you you know in some cases that might work however you're not really entering everything in there and that will not always work right why does that work in this case because because the difference between the beginning balance of 30 000 and uh and and this and these two checks are is is the difference of the five thousand right that's netting out to the five thousand but if these checks didn't clear meaning these were checks that were written were assuming in december but then they cleared in uh in january which were reconciling now but a lot of times you'll have checks that are on the books that shouldn't even be there because because they were entered twice or something and they're never gonna clear if they didn't clear in january this will not happen if this check right here this one thousand doesn't clear in the following month then that won't work because now you can have four thousand here versus a difference of five thousand so i just want to i just want you to note that that could happen and that could kind of work even if it does work that way you still want to be skeptical to do that because what you'd really like to have happen is to show that these these checks were written in the prior period and they were cleared in the current period which means we would like to actually physically put these checks in our system as of the prior period and then we'll adjust this beginning balance to be 30 000 so it'll match what we have so we'll have the same beginning balance of 25 thousand but it will be in there as a 30 000 here and two checks the four thousand and one thousand representing the outstanding checks that were in our system simulating what we would have had in our prior bank reconciliation in the prior accounting system having those outstanding items you know representing the beginning balance so we can properly reconcile so we'll do that next time so i'm going to uncheck this right now and then we'll dive into that in more detail uh next time and and once we do the first reconciliation again the next reconciliation will be easy because we'll have a beginning or cleared balance which will be proper which is in the same accounting system which will then be the proper beginning balance for the following month let's take a quick look at our trial balance just to see where we stand because we did make a change so here's our trial balance as of now so these are our balances if your numbers tie up to these numbers great uh if not try changing the date see if it's a date range issue all we did was adjust the bank account and then we made adjustments to that miscellaneous account down below as well as the bank uh charges which are right here i believe the 15


Hello, Longmont. I'm Macy May with the Longmont Leader. I'm here today partnering with the Longmont Public Media and the invitation of Public Safety Chief Mike Butler. We are here today to talk with Chief Butler about the situation around protesting demonstrations in reaction to the death of George Floyd in the Minneapolis incident, along with how that has spread nationally and even hit home here in Longmont. We've had some protesting going on through the first weekend of June here. And Mike has agreed to sit down with us and answer a few questions. So hello, Mike. How are you today? I'm doing great, Macy. How are you? Doing well. Doing well. Let's just start with your thoughts on what happened with Minneapolis. How does that affect you here, or affect us here in Longmont? Well, I think we can all see that the nexus is obvious and clear. There was a police officer who egregiously abused his power. And as a result, the death of George Floyd occurred. And there were other police officers engaged and involved as well. They have since been charged criminally, and all of them have been fired. And that rippling effect has had significant residuals all over our country, in fact, all over our world, but certainly here in Longmont. We have since in the last two weeks have heard the voices of many people wanting to know. How's our Longmont Police Department doing? Could that happen here in Longmont? And what can we do to prevent that? And so there has been, in my opinion, a very responsible focus in terms of people having their voices heard. And we have had a couple of larger gatherings, one at Third and Main, that went up to Roosevelt Park. And on Saturday, there was a large gathering at Roosevelt Park. And so I've fielded a number of questions. Our council has fielded a number of questions. Our city manager has fielded a number of questions. Our police officers in our community have been very engaged with people in our community as well, not surprising. But so we're getting a lot of questions. We're questions around how we do business, questions about our policies, specifically our use of force policy, and lots of other questions. And as I've said to others, Longmont Public Safety has always encouraged the voice of people in this community. And we've encouraged not just their voice, but we encourage them to go beyond just asking questions and talking about it. We want people in our community to be active, to take action. And at some level, be accountable for the rest of our community, including our police department as well. So the nexus is clear. It's obvious. And it probably will sustain that. We'll probably sustain that over the next months or years. So you talked about civic involvement. What can people do to find the answers that they're seeking to be involved in the processes? And what are those processes that they could get involved in? So let me just back up a little bit here, Basie. And one of the phrases that we're hearing a lot about is police reform. And I will talk about, I want to definitely talk about what residents and citizens in our community can do at a lot of levels. But I also want to talk about police reform. For years, I've been saying, my mantra has been that the police profession needs to kind of reset, recalibrate, rethink what we do and how we do it. We've been saying that, and I personally have been saying that for probably a couple of decades, but more vociferously in the last five to seven years. Because I saw our police profession as somewhat stagnant. And in light of or in spite of what happened in Ferguson in July of 2014 and other cities about that time, Baltimore, Cleveland, New York, Charleston, I don't know if our police profession really got the message that our communities in this country wanted and needed something different out of their police departments. And so for years, basically our police departments across the country have been more or less formed, designed, and structured around enforcing laws. And so that's something we have to do. But the vast majority of police departments typically only focus on enforcement. And so a lot of what they do in terms of how they recruit, who they hire, how they train, the cultures of those organizations, how they're led, how they're supervised, even the architecture of those organizations are kind of geared largely towards enforcement. We're called law enforcement, a phrase that I have not been particularly fond of for almost 30 years because our role is greater than enforcing the law. Our role is very much about partnering with our community at some level helping to build and create a stronger social fabric in our community. And something that Longmont is doing, trying to surface and activate the social capital. The social capital of our community is the gifts, the talents, the skills, the resources, the expertise that people have in our community. Well, police in our country have this incredible platform to kind of surface and activate people, our gifts, our talents. And I could talk a little bit about what we've done in Longmont in terms of our belonging revolution. I know that you've been on one of our walks with Dan Benavides and myself. And so a role that we can play. And so what we've been doing in Longmont is I will say we've been expanding our role. We've been changing our role. We've been resetting, recalibrating, rethinking what we do and how we do it over the last many, many years. And a lot of people are aware of that in our community, but a lot of people aren't. And so and along with that, we have stayed up to date with a lot of our policy and procedure development to ensure that those policies and procedures were in alignment with our motto. And our motto, our Longmont Police Services motto, is policing in partnership with the people. And so the vast majority of our policies and procedures are kind of, have been kind of designed and created to support that motto. And I also want to say that over the years that many people in our community, many of our residents, have been specifically, intimately involved in the development of who we are as a police department. A number of years ago, we actually conducted a long range strategic planning process. And we invited the community to become involved with that. That process included close to 1,000 people from our community. And it took 18 months to develop because we meant what we said when we developed. In fact, our community helped us develop that motto, policing in partnership with the people. And that word partnership is critical to how we operate. We want to operate with absolute as much honesty as we can in terms of working as partners. We want to be as honest and as transparent as we can, as we practically can be. There are certain things we can't talk about because of the nature of ongoing investigations or because of officer safety issues. But our transparency, I would say a second to none in terms of what we're doing. And so community members have been highly engaged with us. And so they were involved in developing who we are. They've been involved in developing our policies and our procedures over the years. And so who we are today is as much a function of our community as much as it is anybody in our staff, including me. And so we have not programs, but we have systems and structures like the Citizens Review Panel where we have five people from our community who review every single internal affairs investigation. They review it for completeness, for honesty, for transparency, for thoroughness, for fairness. And then they make recommendations as to whether or not the actual facts in the investigation support the allegation of misconduct. We've been doing, we've had a Citizen Review Panel in this community for almost a quarter of a century. And many, many people from our community have been involved and engaged with that. We have a lot of people involved with the development of lots of programs within our community, in our police department. We have people from our community who are involved in lots of different aspects of our police department right now. They're walking our hallways.  We're wide open for questions. And I would invite anybody in our community that if you wanna become involved in our police department, give us a call. You can go on our website. There's lots of contact information around lots of opportunities. But the point with all of this is that our community is engaged. And again, there we are in our essence in police, our function of who they are. So that's more or less what we've done a lot with that in terms of our community engagement, certainly our staff involvement with a lot of the development of our structures, our mechanisms, our processes, our systems within our police department to kind of change over time who we are and always staying in alignment and congruent with our motto, policing and partnership with the people. And so the voices, we want the voices of our community to be active. We want them to be, we welcome that. And sometimes we're a little discouraged when we don't see that. And so right now, people seem to be active. And frankly, and they want their voices to be heard. And that's something I have to just say, we enjoy it. We appreciate it. And we welcome those kinds of voices. We may not agree with everything. I don't want to sound like this is always, there's great conversations that happen. There's great debates that happen. And there's always perspectives that are, but what we promise people is that we will make a place safe for people in this community to have their voice heard about what we do and how we do it. So last week at council, you talked about many of these things, the programs that you have in place, how the police department builds relationships, how you look for personality types and do extensive backgrounds on police officers. But during this weekend's protest, I met with several people and many of them even said, one, they don't know what you're doing, but then two, they still don't feel safe in the community. So what, as this conversation grows, what is the police department doing to extend that communication to make it more known what you are doing and then how are you changing some of the ways you go about it so that more people feel safer in this community? You know, and I really appreciate that perspective. You know, let me just tell you what we've been doing over the years. Number one, the invitation to become involved and engaged, I just talked about. Number two, this video is an opportunity for people to learn a little bit and I don't know how much more clear I can be about inviting people in our community to become involved and become engaged. They can see, I won't go number three, number four, but I will say number three, anyone can participate in a ride along if they wanna participate with a police officer. Now that we're more near the tail end of COVID-19, we're gonna be opening up that ride along program again in the not too distant future. We've had hundreds if not thousands of people ride along with us. Our police officers are constantly walking neighborhoods, constantly interacting and engaging with people right where they live. As I talked before a little bit about our belonging revolution, Dan Benavides and I walked 200 plus neighborhoods in this community over the last five years, mostly on Sunday mornings. And our purpose in walking those neighborhoods was to encourage people to feel and believe they belong. If anyone, so let me just continue on with that. The other part of that that we did with that belonging revolution was that we invited people, again, we're about making invitations to people and what we want is we want people to take us up on those invitations and we'll talk about what people can do later in this conversation. But we would definitely want people to become involved and become engaged. In terms of safety, I'm not sure if they're talking about safe from police or safe in their neighborhoods or safe from what's that? They felt like they were still not safe from police prejudice. Did they give you exact examples? Did they give you circumstances or anything that I can respond to more specifically or they just kind of say generally they didn't feel safe? It was more of a general feeling of police officers identifying people of color, maybe not making them feel as welcome or feeling like some people mentioned in their high schools, if something went wrong, kids of color were targeted first or suspected first. So what I can't respond to, Macy, I can't respond to anything without exact circumstances. Sometimes people hear these things and it becomes kind of a general mantra. What I'm very open to is hearing specific complaints or concerns that people have. Let me just say that our school resource officer program is one that we have 12 police officers that are in our schools and two in each high school and one in each middle school. And those police officers, the basis of that school resource officer program is one of relationship. Their purpose is to develop relationships with people, the kids in those schools. And we are highly selective of who we put in those particular positions to the point where high school students, often high school students and school staff are involved in the selection of those police officers. In fact, we have high school students that are involved in the selection of our police officers on an ongoing basis anyway. And so when we do have hiring processes for our police officers, we invite the community, including high school students, to become involved in those. What's difficult for me to respond to is just the general feeling of things. I'm happy to hear that and I can pass that on to our entire staff. But what I want, what we need is very specific circumstances from people in terms of saying what happened, when it happened, where it happened. We're wide open to that. And by the way, we know that sometimes coming down to the police department and filing a complaint can be somewhat intimidating. And so we developed a program called SOMOS. It's a Spanish word that means we are versus me and you and me are separating us. It means we are. And so we developed that with key minority leaders, key people of color in this community several years ago.  They can go to our community relations department, Carmen Ramirez, they can go to El Comite and speak to Donna Lovato. They can go to the R Center. They can go to St. John's Church and file their concerns and complaints. And those folks will actually kind of serve as their advocates. And so we have designed a way of doing business so that people, if they wanna file a concern or a complaint, they don't have to come to me. They don't have to come to our police department. They can go to people that they trust in the community who can serve as their advocates and who can serve their best interests. And so we've worked through a number of concerns that have been filed with either Carmen or Donna or Marta or people from the R Center and have worked through those issues as well. So I just want people to know that that avenue is there for them. And so, but the other part of this is, we welcome again, I can't say enough how much we want to invite people to become part of who we are. So earlier you spoke about police reform, changing the way police departments across the nation think. Some people have called for, and especially this weekend, defunding police in general. So what are your thoughts on that and would that make a difference? Well, I'm 100% certain what people mean by defund. I mean, you can take it on its face value and say, we don't want any more police department in this community. But the language and the concept that I'm hearing emerge, more so than defund is to reimagine what police services, what public safety services can look like. And again, I go back to the words that I've used over the last several years, reset, recalibrate, rethink what we do and how we do it. I'm not sure there's a big difference between that phraseology and the idea of reimagining. And we are always open to thinking about how we can do things differently. And so I know that the big push for that has been in Minneapolis where the city council has said they're gonna defund the Minneapolis Police Department. And so I don't know exactly where that's all gonna go. I don't know exactly what people mean. When they say we just don't want police, I think it also means that we would rather see more, I think what I've also heard is they would rather see more social workers or more people from other professions responding to calls for service. And by the way, we have made that shift in Longmont to do just that. And let me just talk about that for a minute. Number one, I'll talk about what we do with restorative justice. It's a program that Longmont is nationally well known for, statewide we're well known for. And restorative justice, when someone commits a crime and offends and there's an offender and someone's a victim of their harm and there's a victim, rather than arrest or summons somebody, we asked the offender and victim whether or not they would rather, would they like to engage in a reconciling conversation to figure out how they can repair the harm and how they can move forward in their relationship. We have referred literally thousands of people that we would have normally arrested for crimes to the restorative justice process. They don't end up with a rest record. They don't end up with a conviction. And interestingly enough, the recidivism rate from restorative justice is less than 5%. And the victim satisfaction rate is hovering somewhere between 95 and 100%. And so that's an example of a shift that we've made as a result of input from the community in terms of saying we want you to do something different. And so our officers all use restorative justice on a regular ongoing basis. That's one example of people who have committed from people who committed crimes. In terms of some of the social health issues that I think people say, hey, we don't need the police to respond to this. We'd rather have maybe a social worker. We're doing that. We have a new division called the Community Health and Resiliency where we actually have mental health and addiction treatment service providers. Professionals within the arena of mental health and addiction. Responding along with paramedics and police officers. And so they have actually, we've changed and shifted the roles that we play. So rather than arrest people because they've committed a crime and are struggling with an addiction, or rather arrest people because they're committed a crime and they are struggling with their mental health, we actually work through what we call harm reduction model and we work with people to try to divert them down another path so that they can find these services. And so, and let me just say that we run across a number of people who are struggling with addiction. We run across a number of people who are struggling with their mental health. Those are two major social health issues that any police department in this country are encountering. Another one is homelessness, by the way. And so what this country, and one of the things I wanna talk about in a minute here is what we have done to try to deal with those health and social issues. It's not so much just what the police do. This gets bigger than police reform. That is, that's part of it, but there's bigger pieces and parts here that we have to think about as a society and as a community. If we're gonna deal differently with these social and health issues. And so people are saying the fun part of the language I've heard about is that, well, we need different kinds of services to the things police are responding to. I couldn't agree more. But what we've done is we have created, we have legislators, elected officials at all levels, local, state and national have passed laws or stiffened penalties to try to address these social and health issues. And so what we have to do is back off that kind of legislation. And I wouldn't mind if we eliminated some laws that has something that that things to do with folks struggling with their mental health or folks struggling with addiction or even folks struggling with homelessness. But there's hardly a social issue that or it's residual that the police don't respond to. And so if we could get out of the business, a police could get out of the business of responding to a lot of these social and health issues. And we began and we've developed new mechanisms and structures to deal with those issues probably more effectively than invoking the criminal justice system. I think we would be much more effective in dealing with those issues. But at some level, when legislators at all levels are passing laws and saying we were mandating the police to respond, that put the police in the position of having to respond. And so we get people in the community, neighbors. We get family members. We get friends who call the police and say we want you to come and deal with this particular issue, whether it has something to do with an addiction or something to do with mental health or the fear that comes from people struggling with homelessness. Oftentimes those issues are square on the backs of public safety, specifically police. And so the conversations that we've been having that I've been having specifically over the last several years is that this shouldn't fall on the backs of police. If you ask any police chiefs throughout America about those particular social and health issues, they would tell you that in their minds that the community depends more on them to deal with those particular issues than anybody else. And in fact, many of those folks that we encounter have been abandoned. They've been abandoned by families. They've been abandoned by friends. They've been abandoned. They've lost their jobs. They've been abandoned by coworkers or other acquaintances. And in many cases, they've been abandoned by mental health treatment or addiction treatment service providers because those treatment providers call us and say, we don't know what to do. Can you go out and deal with that? And so we took it upon ourselves in Longmont to say, okay, but let's deal with it without having to arrest people. And so I can tell you as an example, from data perspective, for a number of years, the number of suicide, suicide attempts and suicide alleviation calls have been on an increase in Longmont. And so our core program, our co-responder where we have an actual mental health service provider and we actually have a paramedic and a police officer all teamed together now to go on as many of those calls as we could possibly go on. And what we hear often from those people that we're working with is that the only friend they have is a police officer or the only friend they have as a mental health is the clinician or case manager or the paramedic that everybody else in their lives have abandoned them. And so if this community or any community wants to develop mechanism structures to deal with those particular issues, in the moment, I'm talking about on a Saturday morning at 3 a.m. And they wanna go to the messes that we go to when we're called to these messes. We're happy to participate. We're happy to coordinate. We're happy to collaborate with anybody to try to make that happen. But in Longmont, that's what we're doing. We're doing that. And we have a lot of interest, interestingly enough, we have a lot of cooperation from people in our community. But they all wanna know whether or not a police officer is gonna go because they don't know if they're gonna be safe when they go to those instances. And so because we do encounter circumstances where someone might be struggling with a reaction to a drug or to a mental health crisis. And we are especially trained to be able to de-escalate those and to be able to calm those circumstances in a way where the person, the clinician, the case manager, the mental health or the addiction treatment service provider can actually begin to do their work. But I wanna make it very clear, we hear this all the time, that the only friend that some of these folks have are people that work, that are police officers or the people that work in the community health and resiliency division as a case manager, clinician or as a paramedic. And so that's part of the shift that I think we can make. And so when people talk about defunding or re-imagining, we're doing that re-imagining. We're doing something that we think is more effective and more viable for not only the person we're responding to but their families and ultimately the community. Because we know that when we arrest somebody and they're struggling with a mental health issue or they're struggling with an addiction, for them to go back into the system, they come right back out and nothing has been done about the root cause of what's going on. And so rather than arrest, we're working with those folks, we're helping them find services and this harm reduction model basically is a model where we meet people where they're at and we're not gonna make demands for them. The other thing that I don't think people know, a lot of people don't know about that we're doing is that almost three years ago we started what we called the angel initiative. And if you wanna point your camera to that up there, it's an angel with an inscribed angel initiative on top of it. But our angel initiative started a few years ago and what we've done is if we invite anybody who's struggling with an addiction, chemical substance addiction, that come to the police department, come to our doors, let us know that you're struggling with an addiction. If you have drugs, if you have paraphernalia, bring that along with you.   But then we will find you treatment. We have agreements with over 100 different addiction treatment service providers in the area. And they've agreed to provide free addiction, chemical substance addiction treatment to anybody that comes through our angel initiative. And so at the date, we have served probably 250 to 300 people who have walked through our doors, basically waved their white flag and said, I'm struggling and I don't know where else to go. And so Longmont now is a community in which the vast majority of communities struggle with how do you access addiction treatment? We're no longer a community in Longmont where you have to worry about that. You don't need insurance. You don't need the financial wherewithal. You come down to our police department and we will find you treatment. We have found people treatment. We're talking eight to 20 some months of residential free addiction treatment. And so for me, this is not necessarily an infomercial, but this is another way to say to the community, anybody watching this, that if you're struggling with a chemical substance addiction, or if you know somebody, you have a family member or a friend or you yourself are struggling. I understand that there's a little cognitive dissonance to kind of come down to the police department and deal with your addiction. But I can tell you, we have found every single person who walked through our doors addiction treatment. And so again, we have moved away from this whole idea of, we're just gonna deal with the war on drugs through dealing with supply. The Longmont police have frankly shifted a lot of how we do our philosophy, our policies and our practices to deal with the demand. In fact, I had the leader of a unit within, please come to me the other day and say, you know, we found somebody, and I probably shouldn't say too much, but there was a recent case where we found somebody who's actually had a meth lab in their house. We have very few meth labs. We've had very few meth, this is the first one we've had in years. And so we were surprised. But ultimately after talking to this person, we realized that this person was struggling with a meth addiction. We referred them to the Angel Initiative. And so here it is, meth lab, heavy duty crime comes with a heavy duty conviction, lots of years in prison. They're now in the Angel Initiative. That's an example of how we're doing business differently. That's an example of reimagining, resetting, rethinking, recalibrating what we do and how we do it. Because a lot of what we encounter with health and social issues are related to addiction, related to mental health, related to homelessness, a lot of the people that we deal with in these programs I just talked about, maybe 40 to 50% are folks who don't have homes, folks who are experiencing homelessness. I don't know if people know that, but we've been able to help a lot of people kind of come out on the other side, if you will, and be more productive, take another path without an arrest, dealing with their addiction. And frankly, I'm totally honest with this. I mean, the best friend they have is the police officer referred them to these programs because oftentimes these police officers will help them and guide them and support them through these programs. And by the way, back to that school resource officer program, that's exactly what we do with a lot of the kids. A lot of these kids, some of these kids are struggling with addiction. They're struggling with mental health issues. They're struggling with family issues. They're struggling with making friends. And so, and sometimes their best friend is the school resource officer. And so, I'm not gonna challenge anybody to kind of say that we're more or less focused on people of color, because I've not heard that. I've not heard that from Melcomatay, I've not heard that from Carmen, but I'm here to say that if you believe and think that that's happening, I wanna know about it. We wanna know about it. Because our role in the schools is to develop relationships, because we know that's a hard time for people in her lives, anywhere from middle school through high school and beyond. So, our SROs are kind of geared, trained, school taught to work with these students, to work with these young people in a way that can help them get them through those school years. We arrest very few people in the school resource officer program. And we have great relationship with parents, we have great relationship with the kids, great relationship with the staff and the teachers. And so, I invite anyone to let us know if they're seeing anything different, but I want them to come with specifics, not just a general statement. Yeah. So, could you, you've talked about how you help people with mental health issues, with addiction and things like that, but how, what do you do in this police department to rethink, to reimagine, using your words, diversity and being sensitive to diversity in our community? It's an important, important question, very important. And it's something we've worked very, very hard on. And so, and there's been a number of things that we've done over the years. Number one, we have done a lot of cultural diversity training. We have done implicit bias training. I want to tell you a story here about how I got to know Dan Benavides. I don't know how many of you know Dan Benavides, but Dan Benavides was, he became a loud and important voice back in 1980 when a very, very set of unfortunate circumstances occurred when one of our police officers was 40 years ago, when one of our former police officers, a white officer, killed two Hispanic boys. This community, it was not unlike a lot of other communities where this is happening today. Dan became a strong voice to the point where he actually became and a member of our city council, Mayor Pro Tem. And so, I don't want to say too much more about what happened in 18 years, it's more about Dan Benavides. Dan has been a powerful voice in this community for a lot of years. A person of color, very much an advocate for our Latino-Hispanic community, very much kind of has seen himself as someone who wanted to hold government's feet to the fire in terms of ensuring that there was a level playing field, that there was equal opportunity for everybody, that the police weren't racially profiling. And so, he's been very much an advocate for those throughout the years. A number of years ago, I'm gonna say, I don't know, it was at least eight, nine years ago, I attended a cultural diversity training taught by Dan Benavides. And what most culturally diverse trainings that I've been to kind of worked on the trainer seeing through the lens, seeing deficiencies through the lens, seeing deficiencies through that lens. And so, they would get up and say, here's what, more or less, here's what's wrong with you, here's what you're not doing right. And I understand that to some level, but Dan's approach was different. Dan looked through the lens of people's gifts. And so, I asked him if he would wanna be, do some cultural diversity within Longmont Public Safety, he said, of course. And so, it was quite an extraneous program because we would have had to work around the clock for a full week in order to hit all of our shifts. And what Dan did, though, more than anybody else with that cultural diversity training is, he had police officers listening to him. He had police officers and tears. He had police officers thinking, there is another way of seeing differently than what I've been seeing.  He didn't do it that way. He came in and said, basically, you have lots of gifts. You have lots of talents, you have lots of skills. And my Latino community in this, in Longmont, could really benefit from who you are as a person. That shifted who we are, who we were. That training shifted who we were. And a lot of our relationship in terms of how our officers were acting and interacting with our Latino and Hispanic community. And I wanna say that during our belonging and revolutionary walks, Dan Benavidez was my partner during those walks. We walked over 200 neighborhoods. The vast majority of those neighborhoods we walked in had lots of Latino population community engaged. Because we walked mostly, well, we walked mostly on the east side of the community, but we walked some on the west side. We walked mostly apartment complexes. We walked mostly mobile home parks. And we encountered a lot of people, but the major part of the population we were working with was our Latino community. We wanted our Latino community. I don't know what else to say. I don't want this to be political, but we had some issues that came up when this current president was elected. And basically it was a lot of fear from the undocumented population around what might happen. And so we spent a lot of time with our undocumented folks, letting them know that it was safe for them to access Longmont police. We wanted them to be able to access the police. We wanted them to feel safe. So we spent a lot of time in those neighborhoods talking about that with people. We weren't 100% uncertain whether people were undocumented or not. But we know that through our thousands of people that we encountered that we ran across a lot of, mostly we probably ran across people who were undocumented. So we've done a lot of implicit bias training. We've done a lot of cultural diversity training. We've done a tremendous amount of work ensuring that our staff can speak and write and understand Spanish. We have done a lot of work with immersion training with our police officers. At one point, police officers were standing in line to go to immersion training, which by the way is not cheap. But we carved out a significant chunk of our training budget just for to teach our officers Spanish. And that ebbs and flows in terms of the amount and number of people that we have that speak Spanish. But we focus a lot on that because we know we have a number of monolingual people in our community. And we don't want them to feel and believe that because they don't speak English at that point in time that they have an incident that they can't call the police because they don't speak English. And so we have taught a lot of our officers over the years how to speak Spanish. And so we've done a lot of work with our Latino community. We have, with every advocacy group, like whether it's El Comité or any other group, we have a liaison with them. We have someone who serves on the board. We have a police officer that actually serves on the board of El Comité right now. And so, and we've invited them in to our midst as well. And so, and then what Dan taught me though was that you know what, Mike? You just can't invite them into the government buildings and to meetings. You gotta go out into the trenches. You gotta go out into their neighborhoods and meet with them. And so that's what we're doing a lot of right now. So you spoke briefly about the, I mean, we're hitting the anniversary of that 40 year shooting, but this weekend, some folks talked about that as well. And the way they framed it, it was someone from El Comité who said, this happened and this is what we did. We reached out to our police department. We built a community with them. So will you talk about some of how that shooting prompted more change? Well, there's no doubt that that was a incredibly unfortunate tragedy. But sometimes strong communities and far seeing visionary people can see the potential opportunities and possibilities that come out of those tragedies. And people like Martin Marino and Dan Benavides and others did just that. And some of that occurred before I got here. And so there was an outreach by police and it was an outreach by the Latino community to come together and to partner and to figure out how our Latino community and our police department could work more closely together to try to resolve issues and to be more preventative and more proactive to prevent things from happening as well. And so there's been, and what I just talked about prior to that Macy included a lot of what, that's the larger answer to your question. So I just gonna have to call this out. You are retiring at the end of this month. And so a new person's stepping in, there's a lot of change and a lot of change is uncertainty. So what is the plan moving forward with City of Lamont, with the police department? You've held these ideals for many years in your tenure. Are they gonna continue on? I'm not gonna be here, you're right. My last day is July 3rd, but I've had several ongoing conversations with our city manager. But I also wanna say that the culture of this department, the systems, the mechanisms, the processes, how we do business, what we do and how we do it is pretty much institutionalized. And so in my mind, the leader, one of their main roles is to ensure that after they leave that whatever they did, if it's good, sustains itself. Like I have a plaque on the back of my wall that's behind me that I won't turn around and read. But in essence, it says that good leadership, the best kind of leadership is when the people stand up, the best kind of leader will know when his or her job is done, that when the people stand up and say we ourselves have achieved it. And so that's what I hope is here. That's what I'm pretty confident is here, but our city manager, our city council is aware of all of this. Our staff has made it very clear that they wanna continue down this path and even grow more that reimagining, rethinking, recalibrating process. But I will also say that it's not just up to me or the next leader or the staff or the city manager or city council, it's gonna be up to this community. So this invitation stands right now for the next month and certainly for after that. And so if people wanna ensure that their police department is responding in the way they want it to respond, they need to get engaged. And I wanna talk a little bit more. We talked earlier in the conversation about what people can do in our community. So I mentioned social capital and I mentioned our belonging revolution. And when I was out at the, I attended the gathering protest that went between 300 block of main in Roosevelt Park last Friday, I believe it was. I mentioned to somebody that I love the fact that people's voices are loud and clear, but it needs to go beyond that. There needs to be action and there needs to be accountability on the part of the people in this, for other people in this community. Cause there are people who are marginalized. There are people who are socially disenfranchised. There are people are economically disadvantaged. This is my own kind of opinion here. This doesn't represent the opinion of the city of Longa. This is Mike Butler's opinion, but this is where I came from in terms of why we did the belonging revolution and why I believe I've lived in this community for 40 plus years of lots of friends, lots of acquaintances and this community is full of goodness. I can assure you that. And one of the things that we encountered on our walks is that when we talk to people and people tell us their story, their life story, how many gifts they had. And the other thing that we got to realize was that they really wanted a way to offer those gifts. They just didn't know how. And so one of the roles that public safety has been playing over the last few years is figuring out how people could line up the gifts they have to helping others in the community. Because when I was out there Friday with the gatherers and protesters and through our block of main, I said, great, your voice is powerful, it's strong, it's good, we need to hear it, thank you for it, but we also need more. We need you to be part of this. It just can't fall on the backs of police. Like I said, the issues with addiction, the issues with mental health, the issues with homelessness, oftentimes what I hear and see are, what's the police gonna do about it? What are the police gonna, what's government gonna do about it? And so the whole idea of the shift that needs to be made beyond just police reform is that there are a lot of people in this community, whether it's undocumented, whether it's folks who can't speak English, whether it's people who are economically disadvantaged, whether they're socially marginalized or disenfranchised, it's up to our brothers and sisters to help out with that. We can be our brothers and sisters keeper. I am a big believer that that's ultimately where it's gonna go. It's not just gonna fall on government's lap, but we have that capacity and that's what you saw what happened on your walk with and how many people said yes to our invitation. Yes, I'd love not only yes, but an enthusiastic yes to get more engaged and more involved. And so I would invite anybody that wants to have a voice is to go beyond their voice and say, I'm willing to step into the role of trying to help somebody. Because if you want to level the playing field for other people who are socially marginalized or economically disadvantaged, who don't believe they have opportunity, then the best way for that to happen is through other people in this community, through residents, through neighbors, through other citizens. And so when we would gather, oftentimes we would wanna develop what we would call a circle of accountability and support. And the idea is that five or six people from this community would help somebody figure out their life, whether it was find a job, find treatment, serve as a social network, help them with whatever they needed help with. That's ultimately I think the best way to do that. It doesn't mean that police and government won't be involved, we can be. We've actually helped train people to help to do that. But that's where I think this is gonna go. And that's what I think people should be thinking about in terms of how do we make it so that when people want peace and they want justice, a lot of that justice and a lot of that sense of leveling the playing field and a lot of that opportunity can come from our fellow citizens, can come from our fellow brothers and sisters. And so I strongly recommend, and I'm gonna leave with that thinking and I'm gonna stay here in Longmont once I'm done and I'm gonna be part of that once I am done because while I'm retiring officially for my officially sanctioned role as public safety chief, I also intend to be an active community member as well. Well, great. Well, thank you, Mike. I think unless you have anything else that you'd like to add, I think that was a pretty good spot to... Okay. We got the thumbs up. I think that's it for now. And thank you for the questions and thank you for the opportunity. Thank you.


Once we get to the other side, we enter into the new reality in the fourth dimension, not in the third. And in the fourth dimension, we become creators of whatever we think and feel happens. It's a whole new ball game. And in fact, this is what throws people out of it, because if you go into that state in fear, that's what you create, and it destroys you, it throws you back out. But so the only people that do survive this, if the fourth dimension does enter into this way, they say, is those that are in their heart, and they're connected with the heart of the earth, and are loving people, and they will create loving worlds. But then they say that once we enter into that level of consciousness, that once we get to the place where we are actually creating everything as we go, this is when the ETs make their entryway to us, because then we're entering into the same level that there are.


Zero Accounting Software 2023 Enter Transaction for Owner Withdrawal or Personal Payment Using Bank Feeds.  Here we are in our Custom Zero Homepage going into the company file we set up in a prior presentation. The Bank Feed first a word from our sponsor. Well actually these are just items that we picked from the YouTube Shopping Affiliate Program but that's actually good for you because these aren't things that we're just given to us from some large corporation which we don't even use in exchange for us selling them to you. These are things that we actually researched, purchased and used ourselves. Bayer Dynamic? Not sure if I said that right but this is the DT770 Pro 250 OHM Studio Reference Closed Back Headphones. I wear headphones basically every day for a large part of the day. They are important to me therefore I've gone through many different kinds of headphones. I've had these for some time and they've worked quite well. 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You can purchase one at a time or have a subscription model giving you access to all the courses. Courses which are well organized have other resources like Excel files and PDF files to download and no commercials. Duplicating some tabs to put reports in like we do every time right-clicking the tab up top so we can duplicate it. Then we're going to right-click the tab again and duplicate it again. Let's go back to the tab to the middle. Accounting drop-down we want to open up the balance sheet report. Then I'm going to tab to the right. Accounting drop-down again this time opening the income statement or profit and loss report. See the date range on the income statement to bring it back to 2022 because that's the period that we have our bank feeds in. So January and December of 2022. Alright running that let's go back to the first tab now open up our bank feeds which is under the accounting drop-down. We're in the bank accounts we've connected or uploaded information for our checking account manage the account. We're going to go into the transactions and then I'm going to go into the reconcile. We have been constructing our books as much as we can directly from the bank feeds. That means for the most part when we have decreases to the checking account then the other side we're going to record as they come through our bank feeds. Imagining we have an electronic transfer kind of system so that we have the information we need to automate our accounting system. And the other side usually is going to go to an expense the most common reoccurring transactions being like the telephone bill the utility bill the gas bill which we can easily automate. However there are some situations where if you have a decrease to the checking account you need to be careful to make sure that you properly categorize it instead of just having it lumped in to an expense. So some common examples of that would be you're pulling money out for example for a draw. So if you pull money out for a draw meaning you're taking it out for personal use we want to make sure that we don't record that as an expense because if we do we will be overstating these expenses. We will be understating the net income. Now if you're doing taxes in the United States you might say well that's good for taxes because my net income is going down which means I pay less tax. But obviously it's not you can't legally do that. So you'd be miscategorizing your draws as expenses and if you get audited and whatnot you're going to be in trouble for doing that. So what do we want to do on a proper method when we take money out for a draw that should go on the balance sheet. So what should happen we're going to see something come out of the checking account which is a draw the checking account is going to go down. And the other side which is a liability right now because we don't have any we haven't put any deposits in. And the other side is going to go to equity. Now notice it's the equity accounts often confusing to people partially because the equity account has different names when you're talking about different types of organizations. But the total equity is basically the same in concept.  Now you could just record it to the to the retained earnings or the capital account. But oftentimes people like to break out in their own account the draws the money that we are taking out of the business. If it was a corporation we would record it it's the same kind of concept but we would record it as dividends. And the major difference between those two things is of course if you're a sole proprietor what's going to happen you're going to generate revenue as you generate revenue. Your assets are going to go up hopefully your cash goes up and you can either invest that back in the business buying more equipment or you can take it out of the business for personal use in the form of a draw. And you can decide when you want to take money out of course because it's your business if it's a sole proprietor. If it's a corporation however it's a separate legal entity which has its own like corporate structure which is similar to like a government structure. So now you've got to have votes to determine you know who who's going to get to be able to take a draw out and the draws are going to be allocated not to an individual but per share.  If you have a partnership then you might have multiple partners who are similar to a sole proprietor and they have more leeway to take out whatever draws they want and you have to actually track those separate partnership equity accounts. To manage their equity balances and possibly have a separate draws account for each partnership. So partnerships in some ways are actually more complex than a corporation because the goal of a corporation is to be able to scale without being complex because because of that you know deviation or or breaking out of the of the corporate stocks. All right now from a bookkeeping standpoint then anytime something is spent for the personal use you would like to take it out as a draw would be the best way to do it and then and then record it possibly as a personal expense possibly in another zero accounting software if you want to track your personal expenses in zero as well because we would like to have a separation between the business and the personal. But sometimes that doesn't happen sometimes people just spend money for personal stuff out of the business account. If someone spent money for personal stuff out of the business account then you could just pick that up and say OK if you spent money on Disneyland or something. I'm not going to record it as Disneyland expense but instead I'm going to record it as a draw. So it's not the end of the world if that happens it's not like you can't you can't account for that. However it's more difficult to account for that especially if your bookkeeper is not the actual owner of the business because it's going to be difficult to determine if you're just spending money out of one account. It's not about what stuff is business in which stuff is personal but you could kind of break that out if you if you wanted to. And also if you wanted to do account categories you might be able to have an income statement that's broken out that that be able to break out your business and personal allowing you for small businesses sole proprietorships for example to possibly have an income statement which would be what's necessary to create their tax returns on the schedule. With just one zero account and be able to track your personal stuff in there as well. Although that's not you know what you really want to do for a full service accounting system because you're kind of because it's still kind of mixing things up on the balance sheet. But it's kind of not it's could be a system that that works so you have that general option as well. All right so let's go back on over let's go to the first tab and set up a draws account or see if we have a draws account. So I'm going to go to the accounting drop down we're going to go into the chart of accounts. And the draws account is going to be an equity account. So if I go into the equity accounts down here we've got retained earnings let's add another account. Let's call it let's call it three eight zero zero or something and call it draws. So I'm going to say add an account three eight zero zero it's going to be an equity type of account equity and I'm going to call it draws. You could call it withdrawals draws you know you might have multiple draws for different capital accounts if it was a corporation it would be called dividends. We'll save it there. All right let's go back into our bank feed so that draws account by the way is right there. So OK back into our accounting drop down bank accounts back into our transactions for our bank account here and reconcile. And I'm going to find I'm going to find one that we can work with here. Now let's use this one. So this one looks like it's a transfer but we're going to we're going to pretend that this $75 was pulled out as a draw. So the owner pulled the money out as a draw. Now note again that if you're pulling money out of of the checking account just pulling cash out we would like to come up with a system that we're only doing that if we're pulling out for personal use. In other words if you're going to pay for something for the business with cash that's not typically what we would like to do because we want to have an audit trail for anything that we're paying because we want to be able to verify that we're paying it for the business. So if we have a legitimate business expense especially in the United States where we have an income tax system if the IRS comes back and says what did you spend this money on. What we would like to be able to say is I have this audit trail that shows it clearly being spent on this particular thing which is easier if we're not doing cash transactions right. The cash transaction eliminates the ability to to make the to make that connection which you might want on the personal side of things right. I don't want the IRS tracking all my personal transactions and whatnot but I want to have be able to write off the business type of transactions. So that's what we would like to do every time you if you're taking the money out just cash then try to do that with with just draws. If it's a business expense use some kind of electronic transfer so that we can make sure that we have an audit trail for it is the general rule. If you do pull money out for tips or something like that that are business related because cash is just the best method to use. Then you want to have to keep the receipts and whatnot so that you can you can verify the transactions you're making. So let's imagine this one was was taken out for personal use. So I'm going to add the details and I'm going to say that this this is going to be a transfer. OK we might just put that we might just put like owner owner owner. And then I'm going to say it's not an item reoccurring transfer in the account that it's going to go to is draws. Now for paying if we're just taking money out kind of like a salary out of the business that's somewhat standardized then we'll be able to see that clearly. But any money that's just cash coming out of the checking account that the owner is pulling out we would like to be able to assume that is draws. Now if you can't assume that then then you're going to have to say in your bookkeeper working with someone else or even if you're doing your own books you're going to have to then say OK what did I spend this cash on. Again that's not what you really want to do. That's that's kind of a pain to have to do that. So you'd like to be able to assume it was draws. OK I've said that you're beladling the point here for crying out loud. We heard we hear you we hear you. OK just making sure because it messes me up man it messes up my bookkeeping. So I want to make sure you know you know what I'm talking about. In any case we're going to go down in the checking account. So if I go into the checking account we see it coming out of the checking account with a money out form $75 and back to the balance sheet. Nothing happened on the income statement. The other side of course on the balance sheet you can call it like a Contra equity account down here with the draws because it's pulling down the equity. So we took this money out but it didn't flow through the income statement like on retained earnings. It's just went directly to to the draws account. Well the current earnings would flow into retained earnings. The current earnings flow this is the draws. Now the other thing I just want to point out here is that if you've taken accounting courses then you'll note that the temporary accounts are the income statement accounts which will close out to retained earnings. And typically we close out draws to retained earnings as well annually or possibly monthly. Usually annually most likely for small businesses but zero will not automatically close out the draws to the retained earnings. It will close out automatically the current earnings from the income statement to retained earnings. So it's not a big deal if you don't want to close your draws out then this draws account is just going to keep on going up. This will just be the lifetime draws instead of the current year draws. If you want to track your draws just for the current year you can go into the draws account look at the detail and see what happened in the current year. What was the increase for the current year or you can do a year and adjusting entry closing the draws out to retained earnings so that you can just see the draws accumulating upwards for the current year. Nothing happened to the income statement which is good if we did record it to the income statement as miscellaneous expense or something it would be an increase to the expense which would be lowering net income. Alright let's do another one and imagine that we paid for something that I'm seeing in the bank feeds but it was for something personal as opposed to business related. So let's pick up another one of these items here on the prime America. Let's do another one of these and pretend that this one was for personal use. Let's pretend it was like Disneyland or something right. I look through here and I say well that's not a business thing but it came out of the business checking account. Well what do I do now because what should have happened is you should have taken the cash out of the checking account which I would easily see as a draw because it was a cash draw which I would have recorded the draws and then you could have spent the money out of your personal account for Disneyland or whatever. And then we can track that on the personal zero side of things but you didn't do that. We didn't do that let's imagine and we just spent money for personal stuff out of the business checking account. Now obviously one of the problems with that is it's difficult especially if you have a separate person doing the bookkeeping then the owner for them to be able to say is this business or is this personal what accounts should it go to. But if we can differentiate that we can say well I know this is personal then we can put it to the draws account directly right. So now it's not a big deal we can still deal with it we can just put it to the draws account instead of to the income account. The other thing you could do if you want to track personal and business on the same in the same zero software is you might try to use categories breaking out the income statement between business and personal so that you could put it to like a personal expense account entertainment that's personal and possibly break out a different column on the income statement. That's a little that adds a little bit more complication but it allows you to track business and personal in one account. You can't really do that with larger businesses because the balance sheet is going to be more difficult to break out and sometimes even for taxes you need to report the balance sheet. But possibly small businesses might be able to to get away with that so you might want to look into that option. Alright so I'm just going to add the detail here that's the wrong one hold on a sec hold on a sec I want to add the detail for for this one. Okay so and I'm just going to say Primarica okay and then I'm going to say this was for personal use so we'll say $25 and I'm just going to put it to the draws account draws draw. Alright so now so now we'll just put that directly to the draws account so I'll just save it and boom and reconcile okay so then if I go back on over here I could say update if it was a decrease to the checking account which is a liability because it's overdrawn and now the draws account has the $150 in it so there we have it and so there we have it. Now the added complication with this is that you know we're not showing any detail for the personal side. You know if you want to track your personal financial statements you would like to record that as a personal expense on your personal financials which you might do in another zero accounting system. Or again you might use that class tracking kind of system but a lot of times people are really kind of just concerned with getting their corporate or their business side correct so they can comply with whatever needs need to be complied with such as in the United States for example taxes but in any case nothing's recorded on the income statement for that transaction. Let's notice if I go to this first tab by the way we've been still building our financial statements from this information. So you could see that the we've been reconciled everything here our account transactions we've been making our account transactions and reconciling them. Meaning they obviously tie out to what's on the bank statement because because we built them directly from the bank statement so we're creating these transactions from the bank feeds as we go in our contacts. We can also see that we are you know creating our contacts as we go and we've been creating our chart of accounts. All right let's open up another tab right click in the tab and look at our trial balance just to see how this trial balances is formulating because I think that gives us a good look of what is happening reports and trial balance trial balance. And this is just a trial of our balances so if I scroll down notice. This is just the balance sheet on top of the income statement now and now we've added another account to the equity section so equity stops that retained earnings and then the income statement happens income minus expenses. The assets equal the credits because I have all the accounts balance sheet and income statement accounts in debit and credit format which is the same thing as saying in double entry accounting terminology that the assets equal the liabilities plus the equity right. But where does the income statement fall into assets equal liabilities plus equity the equity actually includes all of the income statement which is summarized here at the 83849 which is what's on the income statement 83849 the income statement given us that performance statement the temporary accounts showing our performance over a certain timeframe a month or a year for example.


Hello everyone welcome to lecture on error correction. At the end of this session students will be able to illustrate error correction in corrupted code words or in error pattern. Now before starting with the actual session let's pause the video and think about what is mean by a syndrome testing. If you remember in the previous slides we already studied that syndrome testing what is in the linear block code. Syndrome testing is nothing but the parity check performed on R. R is nothing but the received vector at the receiver side when you transmit the code word U through a channel in communication system and on that received vector parity check is performed to determine whether the R that is a received vector is a valid member of the code word side which is transmitted from the transmitter through a channel. Now let's start with the error correction. We already seen in the previous sessions that we can detect a single error using a syndrome testing in that we also know that we can perform a syndrome test on both either on the corrupted code word or on the error pattern or on whichever on you perform the syndrome testing that gives you a same syndrome. So from this we can say that it is a clue for us that we can not only detect the error but we can also correct the error which is occurred in the code word which transmitted from the transmitter to the receiver through a channel. So why we can correct the code word easily because there is always a one to one correspondence between the correctable error pattern and the syndrome as we seen already that we get the same syndrome pattern from corrupted code word or on from error pattern by using a syndrome testing. So because of that there is always one to one correspondence between that correctable error pattern and syndrome. So because of this we can correct the error. Now we have a number of code words set. So let's arrange that code word set into 2 res to n n tuples in the array format which is also called as a standard array. For example if you have say 6 tuples so 2 res to 6 that gives you the standard array size. So these are the set code words vectors are arranged in that array format. In that first row is nothing but the all the code words starting with the all zero code word and first column contains the all the correctable error pattern. What are these let's we will see as we go on further. So whatever the figure here we are seeing this is nothing but the standard array format for an n comma k code where n is number of code words and k is nothing but the number of parameters. So here you can see this is nothing but the your first row of your standard array size. So this first row which contains all the code words all the code words starting with this all zero code words. This one is nothing but the having all zero code word and this row column which is nothing but your having a error pattern. So these are the all nothing but the correctable error pattern. So from this we already know that the basic property of linear codes that the all zero code vector must be a member of the code word set. If you see over here these are the first row is nothing but the code word set and all zero this one is nothing but the a member of this code word set. So these are all the code words. Now all the rows in this standard array these are the nothing but the coset. So all rows from the standard array are called as a coset and whatever the first element of that h row or you can say that first column which is having all the elements from each row are called as a coset leader. So each row is nothing but the coset and every element starting element of that row is nothing but the coset leader. Now as we said that the first row is nothing but the code word and first column is nothing but the error pattern correctable error pattern. So from that anyone can say that what about this one first one element which is comes in a first row also and in first column also. So for that this first element is having a dual role or you can say two roles one as I say this one is a valid code word and also it is a act as a correctable error pattern. So like this you one plays two roles first one of the code word these are the code word set from that it is a code word or can also be thought of as a error pattern even. So these are the error patterns which are in the first column so it has two roles means that this one is having R equals to Q means R is a received vector U is a transmitted one mean there is a no error in this one right. Now this array contains all the two rows to N and tuples also it has no repetition or no mistakes in the no missing element in the this one. Now we detected the error now let us decode that one so the decoding algorithm is called for the replacing a corrupted vector with a valid code word from the top of the column containing the corrupted as we seen the standard array in that one if you having a corrupted vector the corresponding top of the column having a corrected code word so you can replace that one with that corrected code word for example suppose that you have a code word which is another having a U which is a transmitted over a noisy channel so because of that noise which results in a error in the received vector which is a R so that R is nothing but your transmitted one U plus having a error that is a plus E E is nothing but the error pattern. So this error pattern is added with your transmitted code word you will get the received vector R which is having a error in that. So if the error pattern is caused by the channel is a coset leader we already seen a coset leader which is nothing but the present in the first column of the standard array so if this error pattern which is added in the transmitted code word is a valid coset leader then the received vector can be decoded correct. How you going to decode that we will going to see in the further slides so let us see what is the syndrome of a coset we already know coset means in nothing but the rows of the standard array right. So if E of j is the coset leader we already seen then U i plus E j is an n tuple in this coset right. So the syndrome for this n tuple can be obtained as s equals to U i plus E j into h t, h of t is nothing but the parity check matrix transpose of the parity check matrix we already seen in the previous session about the parity check matrix. So we have this equation s equals to U i plus E j into h of t. So from that we can rewrite this as U i into h of t plus E j into h of t. So we already know that valid code word in multiply with the parity check matrix transpose of the parity check matrix gives you equals to nothing but the 0. So for this the final equation becomes of the syndrome equals to E of j into h of t right. So using this we can find the syndrome for the error pattern and we have we can find the syndrome for the valid code word set and if both are the same so from that we can easily replace the corrupted vector into the valid code word. So for that the procedure of error correction is that first calculate the syndrome of r using s equal to r into h of t. Here s is the syndrome of the received vector r is nothing but the received vector n h of t is we already seen. Then next is locate the coset leader of error pattern E of j which is nothing but the first element of the each row or you can say the first column of the standard array. Whose syndrome equals to r into h of t right we already calculate the syndrome of the coset in the previous slide. So using that if it is equal to this one we can locate the error pattern. Next step is this error pattern is assumed to be corruption caused by the channel. Next one is the correctable received error vector or a code word is identified as u equals to r into E of j right. So this one is nothing but the u equals to r plus E of j. These are the references. Thank you.