From the CUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. Hi, but this is Dave Vellante and welcome to this CXO series. As you know, I've been running this series discussing major trends with CXOs, how they've navigated through the pandemic. And we've got some good news and some bad news today and Ed Walsh is here to talk about that. And how you doing? Great to see you. Great seeing you. Thank you for having me on. I really appreciate it. So the bad news is Ed Walsh is leaving IBM as the head of the storage division. But the good news is he's joining a new startup as CEO and we're going to talk about that. But Ed, always a pleasure to have you. You quite a run at IBM. You really have done a great job there. So let's start there if we can before we get into the other part of the news. So you give us the update. You're coming off another strong quarter for the storage business. And I would say, listen, they're sweet. Hard to believe, but to be honest, we're leaving them in a really good position where they have sustainable growth. So they're actually IBM storage in a very good position. I think you're seeing it in the numbers as well. So yeah, listen, I think the team, I'm very proud of what they were able to pull off. Four years ago, they kind of brought me in, hey, can we get IBM storage back to leadership? They were kind of on their heels, not quite growing or not growing, but falling back in market share. Kind of a distant third place finisher. And basically through real innovation that mattered to clients, which that's a big deal. It's the right innovation that matters to the clients. We really were able to dramatically grow, grow all different four segments of the portfolio, but also get things like profitability growing, but also NPS growing. It really allowed us to go into a sustainable model. And it's really about the team. You've heard of talking about team all the time, which is you get a good team and they really nail great client experiences and they take the right offerings and go to market and merge it. And I'll tell you, I'm very proud of what the IBM team put together. And I'm still the number one fan and insider outside IBM. So it might be bittersweet, but I actually think they're ready for quite some growth. You know, Ed, when you came on theCUBE, right after you had joined IBM, a lot of people were saying, oh, Ed Walsh joined an IBM storage division to sell the division. And I asked you on the Cube, you're here to sell division. And you said, you know, absolutely not. So it's always seemed to me, well, hey, it's a good business, good cash flow business, got a big customer base. So why would IBM sell it? Never really made sense to me. No, I think it's a integral to what IBM does. I think it plays to their client base in a big way. And under my leadership, really we got more aligned with what IBM is doing from the big IBM, right? What we're doing around Red Hat, hybrid multicloud and what we're doing on AI. Those are big focuses of the storage portfolio. So listen, I think IBM is a company is in a position where they're really innovating and driving and really customer centric. And I think IBM storage is benefiting from that and vice versa. I think it's a good match. So one other thing I want to bring up before we move on. So you had said, we're seeing a number. So I want to bring up a chart here. As you know, we've been using a lot of data and sharing data reporting from our partner, ETR Enterprise Technology Research. They do quarterly surveys. They have a very tight methodology. It's similar to NPS, but it's a net score, we call it methodology. And every quarter they go out and what we're showing here is the results from the last three quarter specific to IBM storage and IBM's net score in storage. And net score is essentially we ask people, are you spending more, are you spending less? We subtract the less from the more and that's the net score. And you can see when you go back to the October 19 survey, you know, low single digits and then it dipped in the April survey, which was the height of the pandemic. So this was, this is forward looking. So at the height of the lockdown, people were saying, well, maybe I'm going to, you know, hold off on budgets, but then now look at the July survey, you know, huge, huge uptick. And I think this is testament to a couple of things. One is, as you mentioned the team, but the other is you guys have done a good job of taking R and D, building a product pipeline and getting it into the field. And I think that shows up in the numbers. And that was really one of the hallmarks of your leadership. Yeah, I mean, the innovation at IBM is there's almost an embarrassment or riches inside. It's how do you get in the pipeline? We went from typically about four, four year, four and a half year cycles, now to two year cycle, product cycle. So we're able to innovate and bring it to market much quicker. And I listen, I think that's what clients are looking for.   So the other part of the news is Ed Walsh is joining Chaos Search as the CEO of Chaos Search is a local Boston company. They're focused on log analytics, but more we're going to talk about that. So first of all, congratulations and tell us about your decision why Chaos Search and where you're at there. Yeah, listen, you couldn't tell them from the way I describe IBM. I mean, it was a hard decision to leave IBM, but it was a very, very easy decision to go to Chaos, right? So I knew the founder, I knew what he was working on for the last seven years, right? Last five years as a company, but and I was just blown away at their fundamental innovation and how they're really driving like how to get insights at scale from your data, you know, your data lake in the cloud, but also, and also it's an and statement slash cost dramatically. And they make it so simple, simply put your data in your S3 or really cloud object storage, but right now it's, you know, Amazon, they'll go to the rest of the clouds, but just put your data in S3 and what we'll do is we'll index it, give you API so you can search it and query it. And it literally brings a way to do at scale data analytics and also log analytics on everything you just put into S3 basically bucket. It makes it very simple. And because they're really fundamental, we can go through it fundamental hard technology of the data layer, but they kept all the API. So you're using your normal tools that we did for Elastic Search APIs. You want to do Grafana, you want to do Kibana or you want to do SQL or you want to do, you know, use Looker, Tableau, all those work, which is that's a part of it. It's really revolutionary what they're doing as far as the value prop and we can explain it, but also they made it evolution. It's very easy for clients to go just run in parallel and then they basically turn off what they currently have running. So, you know, data lakes really, the term became popular during the sort of early big data sort of Hadoop era.  You had, you know, map reduce and then elastic map reduce in the cloud and it really was a big batch job where storage is really kind of, you know, the second class citizen, if you will. There wasn't a lot of real time stuff going on and then, you know, Spark comes in and still this very complicated situation. So it sounds like chaos search is really attacking that problem and the first use case that's really going after is log analytics. But explain that a little bit more, please.  It was the first use case that go after it. But basically what they allow us for log analytics, people, everyone does it and everyone's kind of getting to scale with it, right? But if you ask your IT department, you know, are you having a challenge with scale or cost or retention levels, but also management of what they're doing on log analytics or security log analytics or all this machine data they're collecting, the answer would be absolutely no, it's a nightmare. It starts easy and it becomes a big, very costly application for environments. And what chaos does is because they deal with a real issue, which is the data layer, but keep the APIs on the top end so people easily use the data insights at scale. What they're able to do is very simply run in parallel and we'll save you 80% of your cost, but also get better data retention. Because there's typically a trade-off, clients basically have a trade-off or it gets really expensive, it gets to scale, so I should just retain less. We have clients that went from 90 day retention on security logs to literally four and five days. If they didn't catch it in that time, it was too late. Now what they're able to do is they're able to go to our solution, not change what they're doing on applications because we're using the same APIs, but literally save 80%. And this is millions and tens of millions of dollars of savings, but also basically get 90 day retention. It's really limitless. Whatever you put into your S3 bucket, we're gonna give you access to. So that alone shows you that it's just, it's literally revolution that CFO wins because they save money, the IT department wins because they don't have to wrestle with this data technology that wasn't really built. It was really built 30 years ago. It wasn't built for this volume and avaracity of data coming in. And then the data analytics guys, hey, I keep my tool set, but I get all the retention I want. No one's limiting me anymore. So it's kind of an easy win-win and it makes it really easy for clients to have this really big benefit for them. And dramatic cost savings, but also you get the scale, which really means a lot in security log analytics or anything else. So let's dig into that a little bit. So cloud object storage has kind of become the facto bucket, if you will. Everybody wants it because it's simple. It's a get put kind of paradigm and it's cheap, but it's also got performance issues. So people will throw cash at the problem. They'll have to move data around. So is that the problem that you're solving? Is it a performance problem? Is it a cost problem or both? And explain that a little bit. Yeah, so it's all over the, so basically if people were building a data lake, they would like to just put all their data in one very cost-effective, scalable, resilient environment. And that is cloud object storage or S3 or every cloud has around, right? You can do also on-prem. Everyone would love to do that and then literally get their insights out of it, but they want to go after it with their tools. Is it search or is it SQL? They want to go after their own tools. That's the vision everyone wants, but what everyone does now is because, and this is where the core special sauce, what Chaos Search provides, is we built from the ground up, the database, the indexing technology, the database technology, how to actually make your cloud object storage a database. We don't move it somewhere. We don't cache it. You put it inside the bucket. We literally make the cloud object storage the database. And then around it, we basically built a chaos fabric that allows you to spin up compute nodes to go after the data in different ways. We truly have separated the data for the compute, but also if a worker nodes, the beauty of like container type of technology, a worker nodes goes away, nothing happens. It's not like what you do on prem and all of a sudden you have to rebuild clusters. So by fundamentally solving that data layer, but really what was interesting is they just publish APIs. You mentioned put and get. So the APIs you use in cloud object storage is a put and get. Imagine we just added to that API, your search API from Elastic or your SQL interface. It's just all we're doing is extending. You put it in the bucket, we'll extend your ability to get after it. Really it's an API company, but it's a hard tech of putting that data layer together. So you have cost effectiveness and scale simultaneously. But we can ask for, for instance, log analytics. We don't cache, nothing's on SSD, nothing's on local storage. And we're as fast as you're running Elastic search on SSDs. So we've solved the performance and scale issues simultaneously. And that's really the core fundamental technology. And you do that with math, with algorithms, with machine learning, what's the secret sauce? Yeah, and we should really have, I'll tell you, my founder just has the right interesting way of looking at problems. And he really looked at this differently and went after, how do you make both going after data? He really did it in a different way and really a modern way. And the reason it differentiates itself is he built from the ground up to do this on object storage, where basically everyone else is using 30-year-old technology, right? So even really new up-and-coming companies, they're using Tableau, Looker or Snowflake would be another good example. They're not changing how the data's stored. They always have to move at ETL at somewhere to go after it. We avoid all that. In fact, we're probably a pretty good ecosystem players for all those partners as we go forward. So you're talking about Tom Hazel, your founder and CTO and he's brought in a team and they've been working on this for a while. What's his background? Large telecom, building out God boxes. So he's always been in the database space. I can't do his, in my first day of the job, I can't do justice to his deep technology. There's a really good white paper on our website that does that pretty well. But literally the patent technology is a chaos index, which is a database. It makes your object storage the database and then it's really the chaos fabric that puts around it in the chaos refinery that gives you virtual views. But that's one solution. And if you, like for your log analytics, you come in, log in and you get all the tools you used to, but underneath the covers, we're just saving about 80% in overall cost, but also almost limitless retention. We see people going from, Lily they've been reduced the number of logs they're keeping because of cost and complexity and scale down to literally a very small amount and going right back at 90 days. You could do longer, but that's what we see most people go into when they go to our service. Let's talk about the market. I mean, as a startup person, you always look for large markets. Obviously you got to have good tech, a great team and you want large markets. So the space that you're in, I mean, I would think it started early days and kind of the decision support sort of morphed into the data warehouse. You mentioned ETL, that's kind of part of it, business intelligence, it's sort of all in there. If you look at the EDW market, it's probably around 18 to 20 billion. Small slice of that is data lakes, maybe a billion or a billion plus. And then you got this sort of BI layer on top. You mentioned a lot of those, you got ETL. You probably get up into the 30, 35 billion just sort of off the top of my head and from my historical experience and looking at these markets. But I have to say Ed, these markets have traditionally failed to live up to the expectations. Things like 360 degree views of the customer, real time analytics, delivering insights and self-service to the business. Those are promises that these industries made and they ended up being cumbersome, slow, maybe requiring real experts, requiring a lot of infrastructure. The cloud is changing that. Is that right? Is that the way to look at the market that you're going after?  Yeah, I think we're a key fundamental component underneath that whole ecosystem. And yes, you're seeing us build a full stack solution for log analytics because there's a really good way to prove just how game-changing the technology is, but also how we're publishing APIs and it's seamless for how you're using log analytics. Same thing can be applied as we go across the SQL and different BI and analytic type of platforms. So it's exactly how we're looking at the market and it's those players that are all struggling with the same thing. How do they add more value to clients? It's a big cost game, right?  Those two things are typically, you know, literally a trade-off you have to go through and we don't have to do that. That's what really makes this kind of an underlying core technology. And really, I look at log analytics as really the first application set, but if you have any log analytics issues, you know, if you talk to your teams and find out, you know, scale, cost, management issues, it's a pretty, we make it very easy, just run in parallel, we'll do a POC and you'll see how easy it is and you can just save 80%, which is, you know, 80% and better retention is really the value proposition you see at scale, right? So this is day zero for you. Give us the 100-day plan, what do you want to accomplish? Where are you going to focus your priorities? I mean, obviously the company's been started, it's well-funded, but where are you going to focus in the next 100 days? No, I think it's that. It's building out where are we taking the next, you know, there's a lot of things we could do. The degrees of freedom as far as where we'd go with this technology is pretty wide. You're going to see us be the best log analytic company there. We're getting, you know, really a dramatic, you saw an announcement, best quarter ever last quarter and you're seeing this nice as-a-service ramp. You're going to see us go to VPC, so you can do as-a-service with us, but now we can put this exact same thing in your own virtual private data center. You're going to see us go to Google Azure and also IBM Cloud and the really clients are driving this. It's not us driving it, but you're going to see actually the client, so we're going to Google because we had a couple financial institutions that are saying they're driving us to go do exactly that. So it's more really working with our client sets and making sure we got the right roadmap to support what they're trying to do. And then the ecosystem is another play. How to, you know, my core technology is not necessarily competitive with anyone else. No one else is doing this. They're just kind of, hey, move it here. I'll put it on this, you know, foundational DB or they'll put it on a Presto environment. They're not really worried about the bottom line economics, which is really that's the value prop and that's the hard tech and patented technology that we bring to this ecosystem. Well, people are definitely worried about their cloud bills. You know, the CFO saying, whoa, because it's so easy to spin up, you know, instances in the cloud. And so, so, Ed, it really looks like you're, you're going after a real problem. You got some great tech behind you. And of course we love the fact that it's another Boston based company that you're joining because it's more Boston based startups. The better for us here at the East Coast Cube. So, Ed, give us your final thoughts. So, you know, what should we look for? I'm sure we're going to be in touch and congratulations. No, hey, thank you for the time. I'm really excited about this. I really just think it's fundamental technology that allows us to get the most out of everything you're doing around analytics in the cloud. You know, if you look at a data lake model, I think that's our philosophy and we're going to drive it pretty aggressively. And I think it's a good fundamental innovation for this space. And that's the type of tech that, you know, I like. And I think we can also, you know, do a lot of partnering across the ecosystems to make it work for a lot of different people. So anyway, so I guess thank you very much for the time. I appreciate it. Yeah, well, thanks for coming on theCUBE and best of luck. I'm sure we're going to be learning a lot more and hearing a lot more about Chaos Search. Ed Walsh, this is Dave Vellante. Thanking you for watching everybody and we'll see you next time on theCUBE.


Good afternoon and welcome to the STI Summit. It's the first day of our summit. We're broadcasting here from Geneva and the Sustainable Development Impact Summit is now going to take place in the four coming days and at opening day we have a great panel here today with us looking at how we can make sure that the recovery that we are now seeing is more inclusive and sustainable and job-training Than what we saw before the pandemic, but let's face it. We're not out of the woods yet We know that COVID-19 is still around. We know that many economies will be back by the end of this year in the pre-COVID level, but many economies will only recover back to pre-COVID level in 2023 and 24 and There are challenges. There is inflation. There is also Of course, no a situation where a lot of the fiscal muscles are used We put 13 trillion US dollars on the table So if you're going to achieve also progress in the years to come, you really need public-private Partnerships and initiatives and collaboration because many governments will not have the necessary fiscal Muscles the great panel here as I mentioned We have Muhammad al-Jadam. He's the finance minister of Saudi Arabia We have Vicky Halab. She is the president and CEO of Occidental we have NK Singh and NK is one of the experienced Leaders from India and currently the chairman of Finance Commission of India. We have Rich lesser. He is the CEO of BCG Boston Consulting Group and taking our as the chair know in October and we have George Oliver chairman and CEO of Johnson control so This is going to be a very important Discussion know at the first day of our summit. Let me go first to you minister al-Jadam you also headed the successful G20 presidency on behalf of the kingdom of Saudi Arabia and You were also focusing on the developing countries that are no in quite a vulnerable situation Posts or following the pandemic at the same time We are now focusing on home making sure that this our recovery will be more inclusive and sustainable So it would be interesting to hear from you minister at the start here How optimistic are you about the recovery? When is it really going to happen? Are we going to run out of speed when the Money that we put on the table now for stimulus is Running out and how can we walk the talk making sure that we secure more inclusiveness sustainability and Jobs for the young people Following the pandemic over to you in reality and thank you for joining Thank you. Thank you very much. And thank you for the Fantastic battle in front of me Borgi, I think you mentioned a couple of very important points To start with and to answer the question very directly I am optimistic and I think yes, we will have Overall globally a very healthy recovery That said it is not going to be equal recovery and it is not going to be with the recovery There are a lot of issues that we need to deal with and we need to learn from The pandemic the pandemic told us very clearly that if we don't fix the world You are not safe If you look at the emerging markets their opportunity for a sustainable growth and Very few years to come are going to be very difficult and challenging without Dealing with a the pandemic and we need really to focus on You know fighting the pandemic bringing our kids to school because that will Really really bring them back and compensate for the lost opportunities a lot of kids around the world that continue in Saudi Arabia People in the third grade today had only been in school for possibly two three months in the last two years And we are now back to school and I think it is an area where we need to focus So it brings a very clear signal that the world is back and this recovery But also we need to focus on equitable distribution and of vaccines and and that is a very serious area where Governments and private sector will need to come together To make sure that we deal with the bottlenecks of a vaccine connection and allow The emerging markets who doesn't have access to vaccines to be Given that opportunity I think we also need to deal with As another lesson learned from from this crisis is that you cannot have one-size-fits-all solutions You need to deal with countries specific circumstances and and really really focus on that We need to continue the efforts that G20 have endorsed last year in terms of the DSSI in terms of the framework the common framework and Dealing with sustainable deaths at low-income countries That's an area where we really need to focus on we need to get the private sector also Participate and they will close Borgay Very specifically Are the circular carbon economy and the issues that possibly even before we started on the background of this discussion Renewables are a great thing to have and I could tell you even though we are the most Possible new producers and exporters of oil. We are focusing on renewables, but renewables is not the only solution I think we need to focus and invest in technologies research and development Carbon capture reuse so that we deal with it at a very wide Thank you. Well, thank you minister. I think this is a great segue into also Vicky Halop CEO and president of Occidental you heard a minister talking about Renewables of course, but also having a bridge between today's energy mix and The future energy mix at the same time We know that there are close to 800 million people in the world that doesn't even have access to basic Electricity, so how do we square this circle moving forward? First of all, let me say I'm glad to be a part of this forum because it's forums like this that are going to help us advance to where we need to be and Certainly where we need to be in the world is to provide Low-cost electricity for those places in the world that don't have it right now We need to get a better balance across all of the world for quality of life and for for quality of life Certainly electricity power is going to be necessary, but it has to be an affordable cost of energy so to me that puts the The pressure on the rest of us around the world to do the things that we need to do especially in the developed economies with the US being specific focus for this is to Develop and help the transition out of fossil fuels by using technologies that help not only prevent Emissions from existing sources, but to also remove Remove CO2 from the air because there's no doubt that we're going to need fossil fuels For a long time to come and longer than most people think because fossil fuels will help to generate the low-cost power For some of those places that don't have it today so without a way to prevent the Emissions happening from industrial sources in the developed economies today and without the ability to take CO2 directly from the air We can't make that happen And so what we're trying to promote here at Occidental is this collaboration that's been talked about now in the film and from the Minister this collaboration that's so necessary For our world to get to where we need to be and all we have to do is look at the incentives that were given to Solar wind and electric vehicles to see the the case study for how to make that happen And so I think that for the developing world and for those areas that most need it We have to accelerate what we're doing with respect to CC us also as the minister suggested CC us has to happen has to happen in a big way direct air capture has to happen and collaborating among sectors And getting more companies involved in this is going to help us get there And I'm really optimistic because there are a lot more companies that are starting to show interest in doing this proactively Without mandates from governments because the mandates won't get us there as fast as we need to get there So it's it's the it's the companies that are committing to become a net zero by either 2040 or 2050 They're the drivers of what's going to be most important for the world to reduce the emissions from where they are today while not Impairing those those people that don't have the lower cost Electricity that will provide a quality of life that the rest of us enjoy Well, thank you so much rich lesser the CEO of BCG I know a lot of companies know do come to you to get advice. They want to go then co2 neutral by 2030 or 2050 you listen to about to minister under Don said also what the CEO of Occidental know underlined that also carbon has to be part of The solution, but then we knew also need new technology, how do you see the energy mix and the opportunities then for a decoupling here between growth and energy consumption and co2 emission so well first I would agree with Vicki. It's wonderful to get a Group together to talk about these issues that span the public and private sector because we need cooperation Across all sectors if we're going to make the progress that we need I just highlight a few things the first is the encouraging There's two levels of encouragement that I would observe right now amidst massive challenge Which I do not want to diminish the first is how much this has risen on the agenda of nearly every leader I talked to whether in the public or in the private sector It's not that this was unimportant three years ago or five years ago But one would have thought post in while we're still sort of wrestling with a pandemic in many parts of the world This might have fallen off the radar screen and it's just the opposite for so many leaders This is now in one of the three or four core priorities that they're thinking about for their businesses looking ahead The second thing from direct observation that we've had the privilege to have with now hundreds of clients is the opportunity to go further than people think they can in Economically viable ways that there was I think many leaders started with the sense It's the right thing to do But there's no way it's affordable to do and it is true for most businesses to go all the way to net zero today Is extraordinary expensive that last 20 to 40 percent of carbon that sits in the business is really hard to pull out But what's very encouraging is the degree for many businesses to get 40 to 70 percent out relatively quickly and either an economically neutral to slightly positive ways And and sometimes to actually make it so that you can then afford to take on the really hard parts I think people are realizing they can go further faster than they thought and that's a really good sign at the same time the challenges are immense first of all 40 to 70 percent reductions aren't sufficient We need to be getting as close to net zero as we can as fast as we can and in order to get that last chunk out we will need a combination of technology incentives Collaboration across sectors in order to drive that Second for most businesses excluding the really upstream sectors like steel or aviation or aluminum Most sectors have most of their carbon emissions not inside their own operations But in the operations of their upstream business partners their scope three in the in the parlance of carbon language And and that requires tremendous operational skill to put the right measures in to change the way We work with all our business partners to have procurement Way different things and the choices of who it works with in the incentives it sends To be able to do that and the final point is For many parts of the world the kind of transition We need is just not affordable given all the other pressures They have to bring people out of poverty to deal with immense near-term challenges and in order to do that Well, we need to develop world to step up more to deliver on the hundred billion that was in the Paris Accords But it's not really come through We need better collaboration across country boundaries and better support And we need to make sure that we're sending signals that we have to work together to make it a just transition At both the macro level in terms of flowing resources to those parts of the world and at the micro level as individual take as Individual companies take action that could harm communities or not really bring people along in the kind of journeys that we need So so while there are signs of encouragement We just have enormous challenges in order to make the progress at the speed we need to given the urgency of this challenge Well, thank thank you so much rich one company that is really walking the talk here in this area is Johnson control CO and Chairman George Oliver The decarbonization that has to happen in the years to come also has to happen in our building So maybe you can share your vision there and how cost-effective can it be? Can we make sure that the cost of? in action is then I guess Higher than the cost of action in this field Yeah, bogey and I like picking in rich I really appreciate you including us on the the panel and I do believe that Businesses play a huge role on working with the public sector And making sure that we have an affordable supply of energy globally that we drive economic development and Ultimately we decarbonize and our view as it relates to buildings that you can do you can do all of that and We believe that decarbonization in the built environments the role in is a big role in shaping the economic recovery So the transitioning to a lower carbon economy That we believe is an opportunity to build back better as we recover from the pandemic providing clean sustainable Energy efficient solutions creates jobs while we're building strong resilient global economies and while we're doing that It's important for us That we ensure all communities and workers benefit from the transition to a clean energy economy And we believe I agree with rich I think the forces that are underway in the way that this has come together to be a prioritization For all of our constituents is this year has been a critical year for climate action Well, I think as you have stated science shows that we need to move faster to avoid the worst impacts of climate change And I believe as rich has said that not only through incentives But also the technologies that are that exist today as well as being developed I believe puts us solidly on a pathway to net zero by 2050 and now we know that decarbonization when you look at buildings is Part of the solution as buildings represent some 40% of global emissions And reducing the energy waste from building building not only saves money But also a reason to there's every reason to accelerate action into empower customers and future generations Ultimately to consume less energy conserve resources and identify pathways to achieve healthy net zero carbon buildings in communities We talked a little bit about public Private partnerships and financing mechanisms and you know, I agree with Vicki the I believe the business community has an important Responsibility to support ambitious climate change and policy and create jobs and economic growth But we ultimately can't do it alone We realize how important it is to collaborate with all of our Stakeholders in the public and private sectors and we believe global policies funding incentivizing and directly mandating decarbonized buildings as a good example Which the in the US? Biden's administration their plan to rep fit all federal buildings and invest in broader Decarbonization is a good example and we're working to working with all of our stakeholders to ensure That we have a constructive path ahead of these actions and one of the things I'd also note Bogey is that as we're doing this You know, we're focusing on local communities that help them not only meet the decarbonization goals But also ensure a sustainable recovery a good good example is projects like we did with the housing authority in the city of Pablo, Colorado Which where we've enabled decarbonization while ensuring an equitable recovery with our partners We actually built a solar garden for a housing authority that will generate enough energy to power 2,200 households annually and in addition to providing the clean energy to the community The project actually provided hands-on solar training and employment opportunities for the local community and the improved building Efficiencies will directly support the community wellness while reducing the city's carbon footprint to create a greener healthier environment So I think you know three P's public-private partnerships are an innovative model that can accelerate the implementation of these decarbonization measures By enabling the public sector to improve facilities without an upfront cost and for us We actually can create an economic return We can go in upgrade a building make it healthier and safer While we're reducing the energy consumed and ultimately delivering payback through Operational improvement because we can reduce it in operations 30 40 50 percent And so we play a big role in reducing the demand at the same time that we're working With the supply to make sure that we're replacing the remaining demand with renewable supply that ultimately gets to a net zero net zero Carbon solution so I believe that working the way that we're working in providing outputs and being able to bring a full Solution within the building connecting not only what we do in HVAC But all of the other building systems to connect all of that with automation And then the data is what enables us to be able to have such a significant impact In the overall carbon consumed So those are some of the thoughts that we have and we've been on a journey working with the business round table with the In the US with European round table and with West to be able to educate all of our constituents on What ultimately can be achieved and can can play a big big part of how we not only create economic Economic development at the same time while we're delivering on our decarbonization goals Thank You George. Thank you for your leadership in this field Let's then move to New deli and case saying is one of the most experienced civil servants, but also Government leaders in India and also happens to be an excellent economy So I would like to pick your brain on some of the more macro challenges and K that we are faced with We know that in the run-up to COP 26 in Glasgow We all know that without China and India on board there will not be a new ambitious Deal and we know that secretary Kerry just visited also India and discussed Like when can there be for example an ambition from India aside to go net zero at the same time We know that the pandemic hit India in a rough way You are no handling it economy is again growing quite substantially But we know there's a lot of pressing development issues also Facing your country. So hold you What is your take on India's role now on the decarbonization and net zero global issue? And secondly, hold you see the next months when it comes to the Indian economy. Are you out of the woods? well first of all What yeah, thank you so much. It's a privilege to be part of this discussion with such an imminent panelist and Most of what the other panelists have said I'm in total agreement With them I'll make by some of the remarks very brief But let me begin by saying that I agree with you about the fiscal muscle I will comment on that issue of the fiscal muscle with which you began But also with the remarks of the finance minister he very sagaciously said that One size doesn't fit on and India would be a classic case of one size Not fitting all this is because as you rightly pointed out that We have gone through successive waves of the pandemic It has been a sagacious act on the part of the leadership to balance issues of life Over issues of livelihood that two are not symmetric what may be good for life May or may not be good for livelihood So a right mix in a manner which does it enables the life to be protected and minimized as human hardship like direct benefit issues like public distribution system being strengthened like Employment guarantees teams for rural areas and all that has resulted With a rather sharp what I call the v-shape recovery of the Indian economy to take the last point Which you which you mentioned and I think that this recovery is likely to be sustainable But before I comment on anything on that sustainable first of all, I totally agree with the wish that looking at cop 26 the first dominant concern and yes Kerry was here. He met all the Relevant to the lecuta before that the environment Secretary Sharma was here. He met me also discuss the stuff so I think they should absolutely right that the issue of the Unfulfilled commitment of hundred billion Seems to hunt us and in some manner this needs to be addressed which addresses the historic legacy concerns of developing economies like India of The huge amount of ozone layer already occupied the issues of climate Justice and so on But I think that if we address this issue we can get out of the trap of these legacy issues Why because I totally agree that it is high up on the agenda never before Has the issues been so high up never before Have been such an enormous opportunity of making this economically viable and affordable I think that in that sense this cop 26 is taking place in a much more favorable environment not withstanding The pandemic then any other earlier cop because the affordability and availability of Technologies which make these commercially viable. I will make two more very three very brief comments and stop First Because technology is a great equalizer But it's also a great divider Because as was rightly pointed out That India coped with this huge Pandemic we did not allow our education systems to be disrupted because of online education for children and yet Because of the lack of availability of electricity Lot of people were left out of this mainstream which Accentuated the inequality in a country of India side I think that one of the questions which was posed was that have more people gone back into extreme poverty Than ever before on account of the pandemic and technology is a unified but technology can also be a divider So I think as I look forward How does it harness technology in a manner which makes it for build back better More inclusive more equitable build back And I think that some of the panelists who have pointed out on this have done the second point which I agree entirely That we may have to live for fossil fuel for longer than we think The issue would be what is the most non disruptive part as We embrace the renewable technology now we need to have a combination of a lot of livelihood a lot of human life Has it built around fossil fuel and as we transit to an era of Renewable fuels transit to an era of green fuels We need to see the least disruptive part which is quite a large country of 1.2 billion size of India Difficult one last point and I'll stop I entirely agree with you Boschia That where is public outlay is important and that's where I think that some of the support for multilateral organizations and World Bank the IMF The what has been done by the public outlays this additional finance is important But we need to find way of how doesn't crowd in private Some of India's leading firms some of which the Excellency Finance Minister may be aware or have taken some far-reaching steps in risky large investments on green hydrogen energy on storage systems Transportation systems and how does the regulatory framework in our countries begin to crowd in private investment and A lot of the success of opt into six would depend on the ability to Harmonize a relationship between public-private partnership, which is mutually beneficial. Thank you. No, thank you so much NK Extremely Important input. I would like to go back to you Minister Jadon You heard NK Seeing her talking about the V shaped recovery. Sometimes I feel we're like in the W Shaped recovery because of the pandemic and as you also mentioned initially it has not been a recovery that is Distributed the same way all over the world for example on the stimulus the 13 14 trillion U.S. Dollars only 2% of the stimulus has gone to developing nations And as we know in the continent next to Saudi Arabia Africa only two to three percent of the population is Vaccinated and we have for the first time in two decades seen that there are no hundred million more people that became in the category of extreme poor this Year, so the development issues are a really really Challenging at the same time. We know that climate change is also playing a role here We have the run-up to the COP26, but the same time, you know, also there is energy Poverty in the world as I mentioned in my question To to wiki so it is a really a challenging Landscape here and who will the Kingdom of Saudi Arabia? Deal with this and what's your policies know in the run-up to the COP26 the MC 12 the trade minister meeting and also The upcoming meetings in G20 Thank you again, I was really really pleased to hear my colleagues in the panel. I think they bring about very very important points Particularly for gay Turkey elements one is I think if we Possibly you said it before me if we stop talking and do I Think we will achieve a lot more and I could tell you in terms of recovery It is possibly not necessarily V shape or over Possibly even K shape But certain economies will become despite the difficulties But others are going to struggle and struggle big time In Saudi I could tell you why we have limited resources We have contributed When I compare just as a minister of finance how much I indicated to the vaccine and Saudi Arabia compared to how much we actually Donated for the COVID-19 particularly for vaccine development and distribution If you look at the size, it's about 20 percent. So we actually spent 20 percent supporting the world health Recovery particularly in the low-income countries compared to how much I paid for vaccines in and in Saudi Arabia And I think the second point it's an argument that we had if you remember Last year during our presidency and earlier this year with the G20 and the rule diameter is for the special throwing rights and They tried to not be saying actually now we have an opportunity So it is out of politics currently to go to your parliament to advocate funds from your own budget You will be given free money. So why are we giving it to giving it to countries and then expecting them to give it back to Why can't we allocate 50 100 150 billion out of the 650 and Basically, I give it to the multilateral institutions and say this is our insurance policy for low-income countries to recover This is what we are going to do to help these countries. Unfortunately that did not happen I would still are go and I'm encouraging my colleagues in the G20 to do something about this And to make sure that we all with the private sector contribute to the equitable Recovery out of this very difficult crisis. I would like to comment just a couple of points for gay that were mentioned in particularly in relation to energy and in that point, I think we are Possibly kidding ourselves if we think that clean energy is the solution in the short-term and the Clean energy is very important and renewables are extremely important. So the rabbi is actually investing tens of billions of dollars Unrenewables and it is 50% of our energy mix even though we are we are the most Exporters of the world But that alone is not going to be enough and we have seen and we should learn from what's happening in Europe today about the prices which are Learned that even electric vehicles charging stations being stopped during the daytime Because that isn't enough energy. So we need to work on research and development We need to work on how we are going to Develop technologies that would help us capture reuse or remove Emissions, thank you Wikia you heard what minister Jadon just said no on the energy prices First the price of oil and gas has gone up and here in Europe in the middle of Europe We're seeing and no electricity prices and gas prices We haven't seen for decades and there is no a lot of political pressure also on the leaders here and the same time We know that we're running up to cup 26 are we currently Seeing a global situation that there is a huge under investing in energy Do you think we will have a energy security access? Crisis and how do we deal with this at the same time as we have to get down the co2 emissions? It seems like catch-22. I Definitely believe that's a risk because if you look at the oil and gas industry and you looked at the exploration that used to drive Our our our industry in terms of developing new resources and finding new resources that can Provide the meat demand in the future that Exploration dollars are about 10% of what they were at the height of our industry. So exploration Essentially is now a very very very small part of our industry investment so without exploration that means you have to get the most out of the reservoirs that you have today and And that's one of the one of the premises of the many models is that the lower cost Emissions will be those that come from existing reservoirs and that will not only help to To meet the the growing challenge of meeting the world's future oil and gas demands With lower investment it will also do it in a lower intensive way from an emission standpoint and so that's why we're really pushing and and trying to ensure that carbon capture use and sequestration is A part of the solution to what's happening with the energy and industry today the oil and gas industry With fewer people developing new new reserves It's going to be critical that using carbon capture use and sequestration Not only help us to generate and get more reserves out of the ground today In fact, we can in some cases in the in the shale reservoirs We can double recovery with CO2 enhanced oil recovery using anthropogenic CO2 from industry and CO2 directly from the air and Every time we cycle through CO2 a portion of that CO2 40% stays sequestered in the reservoirs So it does help with sequestration It also takes more CO2 injected into an oil reservoir than the barrel of oil That's produced from that injection generates when it's used so combined with With emission free power we can and direct our capture anthropogenic capture the CC us that we can do today will provide also lower carbon net neutral or net zero Carbon oil to aviation and airtime industries and those are the industries that most need the help with Becoming carbon neutral over time. So while I think that we're under invested I think that we have this very unique opportunity in the world that we can create more investment and generate the Oil that the world needs and bought while lowering emissions in the process providing lower carbon or carbon neutral oil to aviation and maritime and We're also developing a technology that goes along with that, which is a an emission free power generation Technology what it does is as a part of the process of generating lower-cost electricity than traditional ways that are used today It and producing that electricity generates a pure stream of CO2 that can then be sequestered without needing retrofitting It's a it's a part of the construction in the process and it's called net power. So those are technologies that need to be advanced in lieu of spending a lot more dollars to go and explore and Develop new reserves in the world. And so we're doing that and I know others are looking at doing that too And I think that's how our industry helps with the transition Well, thank you so much rich lesser We really need Someone as thoughtful as you and busy G to help us there now because I in a way see a triangle here It's access to energy Then there is energy security But then there is a question of like all this energy also has to be decoupled from increased CO2 emissions Or we have to have the tech technology of carbon capture storage and sequestration, but we're not moving Into a situation that that is really happening because that has also to be incentivized So hope do you see any? end of this impulse is it possible to break it It's possible But it's going to be a challenge which is why we're going to need to work Collaboratively across traditional boundaries to do it if I go back to minister Singh's comments It really just struck me the the challenge of this because on the one hand, he's right Completely right about how disruptive this could be to economies that are already fragile in parts of the world where people are Just emerging from poverty or many still in poverty and to take this on and the flip side is that the failure to act aggressively and boldly in the short term will hurt those exact same populations and future generations Probably the most severely through disruption to food systems through vulnerable populations in coastal areas or facing severe weather Events through just the flat-out heat because many of lower and middle-income countries are just closer to the equator and their Citizens will suffer as heat rises to levels that pride most of us would think are are barely livable and and and so so we're in this challenge where You can't help but feel empathy for the pressures that officials feel government officials and From their citizens and we see it even in the developed road as you were saying people reacting to high energy prices the yellow vest best situation so so like We have to start with empathy and understanding but we also have to recognize that failure to act boldly puts Enormous vulnerability under huge stretches of humanity and often those who will least be able to react in effective ways to it So what does that mean that means first that we have to take it on as a global challenge? As I said earlier where the developed world feels a responsibility to help low and middle-income countries to move faster Second we have to rise that every single thing we do in Technology to bring down the cost of this transition will pay for itself many times over because one it is Extraordinarily expensive and two it'll make it'll change the trade-off curve for many others where this trade-off is enormously Expensive so all the investments we make in technology whether it's in renewables whether it's in carbon capture whether it's in Technologies that are out of favor like nuclear right now But we'll maybe and maybe not in all parts of the world But in some parts of the world will be an important part of the solution and whether it's in all the work that Downstream users of carbon put into their supply chains to help them decarbonize to pay and invest in their businesses to encourage that Those things are going to be very important what I've been encouraged by is I think the business community in ways that George and Vicki expressed far better than I could and but on many different parts of the economy are Stepping forward to be bolder. I think many governments realize the urgency here But if they're under big challenges a pandemic not the least of that for sure And and the more we can get cooperation between governments to set bolder ambitions and business and government to work collaboratively to spur those investments to protect the people that move first to Encourage changes in behavior from business. I think we're likely to get there at a better pace and if we don't The suffering is going to be very high No, thank you rich George may be a short comment from you Yeah, I mean, I you know, I agree with rich relative to technology innovation being a Really a big part of the solution and what I'm seeing Especially in our space that it does require more innovative approaches to how we go to market Also that the traditional ways that buildings were served in the the cost and and the lack of efficiency Has has really been highlighted now as we go through the cycle and getting back to this public private partnerships We believe in for instance with with buildings being such a big part of the carbon footprint How do we be innovative in creating an output that instead of the traditional approach to building and maintaining a Building how do you create an output that actually can be be financed and the re the output that's actually being created is creating a return As a result and when we look at the tight economic conditions, whether it be, you know, public sector entities Including schools hospitals government agencies They're stretched for for dollars to construct new facilities maintain existing ones and without the You know necessary resources they're delayed and then therefore it delays the ability to be able to get the efficiency that we believe Can be achieved in buildings and so the way that we when we you look at the trillions in additional investment That's going to be needed in in carbon cutting technology And ultimately the projects and services that are going to be required to meet the goals on the Paris Climate Accord We believe the the smart regulations combined with technology and innovation not only in the technology around renewables But also as we're looking at the solution sets that are critical to being able to create the outputs within buildings The two combined can ultimately not only create Economic economic return Significantly reduce the carbon and at the same time focusing the return on developing the workforce that we believe from an economic standpoint Is it's going to be a big deal especially in these developing on communities? Thank you Josh and K sing we know that Prime Minister Modi is Heading to New York. He's going to participate at the UNGA this year. He hasn't frequently gone But this year he is and I think he's also meeting with President Biden on Friday and I guess one of the topics that you will touch on is Cop 26 energy Environment, but I guess also the broader picture about an inclusive recovery and also the more geopolitical Challenges that we are seeing Just currently so it would be very interesting because I know you're very close to the Prime Minister To her a little bit of the current thinking and zeitgeist in Delhi now. I think that Which of all I share most of the comments made by many of the panelists. I totally agree with the fixancy the finance minister that the Innovative ways must be found like the somewhat inclusive broad-based SDR allocation Which doesn't leave out an exclude countries and I think that getting multilaterals in the picture would be of enormous That would be of enormous help and I think that rich as usual I cannot refrain from making one observation that I totally agree with you rich when you say that This whole issue of disruption and the issue of disruption in a country like India A pockets of fossil fuel Well, millions of people are engaged Also happened to be the poorest part of the country. So a non-destructive transition On fossil fuel which minimizes human cost and doesn't accentuate the poverty Central is one of the challenges which the leadership is having to travel. I think that You raise the issue of how do I see the Prime Minister's with it where the Prime Minister knows very well The fact that he has gone and record so many times to emphasize what a centerpiece This issue is just take three recent announcement. There's going to build on that. So that's partly will Bursher He chose the Occasion of India's the 75th independence to announce a special green hydrogen mission That embeds a lot Special green hydrogen mission. I let college public out there Encourage Ghana private investment and courage gainful searches. So he will emphasize the hydrogen global hydrogen alliance Green hydrogen alliance and one of the areas building on his 75th independence day at first the second as a signal of transit He did one of the critical users of fossil fuel in India and is a lot India's largest public sector Which has captive coal mines has lots of captive stuff is the Indian rail with which I don't know How many of the this very distinguished panelists have traveled on the Indian railways, but there are some Good in features Indian railings. She has openly committed To make the Indian railways Let's zero This is a very powerful signal that India's public sector undertakings Which will therefore naturally include steel big investments there schools if The most important public enterprise which is railways is going to be net zero It's a target which seeks to extend his commitment in Paris of achieving certain levels While giving leadership of the solar alliance to extend that in terms of energy efficiency and moving towards Uses of greater technology, but the one point which I think that I He's certainly going to emphasize Given what he has been saying is the role of public-private partnership in harnessing affordable Technology and making technology access. So I think that the criticality of the role of private capital And what is the kind of enabling regulatory framework which are now Crowding in our private capital you're going to one of the teams and messages. Yes, of course, I don't want to comment on it Geopolitics will also be on his mind right now given as we are under your Moderate a ship shaping equitable inclusive sustainable growth. I have Restricted my remarks on some of the issues which have been raised one final comedy for my I think on issues of fiscal policy And I think that the recovery process if it is rapid enough Provide every country the room For much greater maneuverability on higher public outlays without compromising the framework of macroeconomic stability to which levels of sustainable debt and Levels of fiscal deficit are centerpiece of that strategy. Certainly that is true But this is a time of not only transition from the pandemic But a transition to an era of renewable energy It's a time of fiscal forbearance and not fiscal rectitude and therefore The room for fiscal policy of sovereigns must be with flexibility means the compelling needs of the time Thank you so much and Kay Moving back to you. Mr. Jadan. We're coming close to an end there You mentioned in your last intervention that we might not be faced with the we shaped or a W shaped Recovery, but maybe a K something is going up and something is going down Of course that is concerning if what's going down is the developing Economist and what's going up is is the developed world. So then we will see increased In the qualities in the world, but what would be very interesting? I know you don't have a crystal ball, but you have very Smart economists around you there. Where do you feel that the economy? Are gonna end up in the two to three years. Are you? Bullish or bearish Thank you. I think two things one is I am actually very optimistic. I think we will have generally generally a very good recovery And over the next two to three years, I could tell you inside the radio. We Are working a very hard to complement our vision for 2030 and most likely And the way things are working is we are going to have a very healthy recovery And I think most of the world will have that We need to watch out for low-income countries. We need to watch out for You know imagine markets that really really requires him and that should not be really ignored in any way share or form. I think one thing that we Talked about and I would like just to to comment on very quickly possibly a few seconds is If you look at some of the technologies that are now being applied They I mean I'll tell you in Saudi Arabia. We have we have two investments large investments that we have one in government buildings Where we are actually contracting private sector to replace all the energy Consuming tools particularly lights some of the ACs and what we are paying them We are not paying them anything. We are basically paying them back of their physical The difference between the two This is the before and after for five years some of them for seven years. So it is just amazing what you could do when you have the will to Apply technology and involve The profits I could the same we are doing with these are units where we are replacing Liquid fuel these are with either renewables or gas and we are recovering the capital For replacing the whole unit in about 20 months So if you think and if you have the will I think you have the means all over. Thank you Shukran a short comment From you rich lesser and then I'll go for the closing. We should be on time rich Thank you, just I just wanted to come back to minister sings comments I thought it was so important this concept of a just transition and what do we do at both the micro level? There's a very interesting effort I've been close to at the council for inclusive capitalism with the Vatican about how to develop frameworks for companies to follow on just transitions because we're all going to be changing our business models that could hurt workers could hurt communities Could make it that much more difficult and how do we at that level think about involving communities involving our workforces? Thinking about what other ways we can do to bridge this very challenging transition ahead and second how capital comes to bear on that Bill Gates just announced a big Program with breakthrough energies this morning that will be a part of on how do you invest? Capital with low return mindset not to generate high returns But to create the technologies that will help everyone which I think minister sing also highlighted And I just thought those two points were really important and worth amplifying Thank you So much It's been a great panel. I learned a lot. I think we all gained the insight I would have loved to Continue another half an hour and then I learned that's the time when you should cut the panel when everyone wants it to still continue So I really great input from all the panelists. We touched on Energy access energy security. We also touched on decoupling we also touched on how we can secure a more inclusive and job-creating recovery we didn't conclude if it was a wk or a v-shape recovery, but I'm Then leaning towards what minister Jedan said he's optimistic on medium term that we will see Growth back in the global Economy so thank you all for joining and I couldn't think of a better start of our first day of our summit So special. Thank you to a great panel. Thank you so much


QuickBooks Online 2023, sales tax set up. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our get great guitars practice file we set up in a prior presentation using the 30 day free trial. We also have the free QuickBooks Online test drive sample company open. If you want these two things open at the same time we suggest using the incognito window or another browser if using Google Chrome you can find the incognito by selecting the three dots and choosing the new incognito window and then typing in QuickBooks Online test drive to find the sample company. We will be using the sample company to compare and contrast the accounting view the view that get great guitars will be in indicated or can be seen with the items on the left and the business view the view that the sample company will be in you can toggle back and forth between the two views by selecting the cog dropdown and switch back and forth between accounting and business here. In prior presentations we set up the company file we looked at some of the preferences under the cog button up top we looked at our chart of accounts we are entering the beginning balances imagining that we had a prior accounting system and we're entering the beginning balances from it as of the cutoff date 12, 31, 22 so we can move forward as of January 1st, 2023 last time we entered the inventory items which got us to this number for the inventory assets at the 2008, 96. Now that we have that in place we also wanna think about setting up our sales tax so that when we make the sales the sales tax will be appropriately calculated going forward quick recap on the sales tax how it's gonna work I'm gonna jump on over to the flow chart remember support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page we also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable so once again click the link below for a free month membership to our website and all the content on it the sales tax will typically be applied this is a desktop flow chart but we're just looking at the flow here looking at the customer cycle usually when we make a sale if there's gonna be sales tax applicable we'll need to be using the invoice form or the sales receipt form we're gonna be charging whatever we charge for the actual item being sold and then we're gonna have to bump it up for the sales tax so that we're gonna be collecting on the sales tax the sales tax in theory is not something that we are charging as the business owner but rather we are the collection agent for the tax agency and therefore we're not gonna record the amount we collect for sales tax as revenue and then expense it when paid but rather we're gonna put it on the books as a payable when we make the sale and then we'll decrease the payable when we pay the sales tax so that's the general idea and the United States the sales tax is going to be a a state and local tax as opposed to a federal tax so we don't have like a blanketed sales tax over the whole country it'll be dependent upon the location and could be dependent on other like where the sales took place and so on and so forth but therefore it's a little bit more complex QuickBooks does have a nice setup process to try to help us to calculate the sales tax now also we wanna keep three things in mind with the sales tax the first thing to keep in mind is you gotta turn on the sales tax which we'll do down here in the taxes tab on the left if you're in the business view you also have a taxes tab on the left as well once the sales tax is turned on and set up the system needs to know whether or not the sales tax is gonna be applicable or not the primary thing that will give the indication there is the items that we set up last time the products and services that's under the sales tab and then the products and services and the business view it's under the get paid and paid tab and the products and services so we set these up before for us we're gonna say that the inventory items are typically subject to sales tax the service items are not gonna be subject to sales tax so once we turn the sales tax on we'll have to verify that there's properly recording the items having a taxable component or not and then the third thing we have to think about are the customers meaning for example is the customer subject to what sales tax is the customer gonna be subject to and if we have multiple sales tax applicable and we might have some customers that aren't subject to sales tax at all so we could then go to the customer and kind of override the primary item that's gonna indicate sales tax which will be the inventory items okay that said let's see how it works let's set up the sales tax we're gonna go to the tab on the left we're gonna go to the taxes and we're in the sales tax so I'm gonna close this back out says up top automatically calculate sales tax rate for each sale one create an invoice or receipt two we calculate the sales tax rate based on date location type of product or service and customers those are the three items and three we keep your sales tax updated when laws change so you stay compliant which is nice the systems getting better and better at applying the sales taxes on state and local level which is more complex than just a federal level so that's nice so we're gonna use the automatic sales tax here's the address we have on record so they're using our address which is gonna be the primary address that they're gonna try to calculate the sales tax in so they're gonna say hey what are the this is my my interpretation what are the sales tax requirements for a business located at that address that's gonna be what they're gonna assume is gonna be applicable in general so we're gonna say all right let's keep that so I'm in California here in practice we'll try to make the sales tax kind of generic I'm trying to try to override it to 5% when we make the sales just to keep it like a generic sales tax but it's gonna be based on the location here okay tell us more about your taxes we calculate sales tax based on what you sell and where you sell it so if you sell in multiple locations we calculate the correct sales tax for each one so do you need to calculate sales tax outside of California I'm gonna say no which will of course be more simplified if you do have sales tax in multiple locations then you'd hit yes and you gotta make sure that you're filling out the information necessary for the sales tax for multiple locations so it looks like you need to pay tax to just one government office in California we call this your tax agency your tax agency California department of tax and fees administration I'm gonna copy that in case they wanna force me to make the vendor for that but yeah that's who we pay then in California looks good nice long title for the California office there automatic sales taxes set up give it a spin by creating your first invoice so I'm not gonna create the invoice here because I think that kinda confuses things I'm gonna close this out first and that then gives us our sales tax information to further populate so how often do you file sales tax so you can find this info on your sales tax business registration so if we're subject to sales tax then we gotta make sure that we're set up our sales tax with the appropriate office of the sales tax and then we need to determine how frequently we need to pay the sales tax now remember what happens we make sales, we're gonna collect the sales tax which hopefully should be set up to do that at this point in time and then the money that we've collected from the customers because we're just the collection agency now they've made us into their collection agency we're gonna have to then pay that to the government at some point in the future how is that going to work am I gonna be collecting the money on the sales for the month of January for example and then have to pay the January collections I made in February or maybe I can collect for three months the whole quarter January, February, March and then I pay at the first month of the following quarter and so on or maybe they let me collect all year and I only have to pay one time what's gonna be the deal so if you can't find it or change or it change, check out the table to see so normally you would wanna go to your personal information but they have the default information down below you got the California Department of Tax and Fees this is of course subject to California it will differ based on your location but you have a similar kind of concept so filing frequency so do we file monthly, quarterly or yearly again this will be dependent on location and typically the amount of sales you make generally if you don't make a lot of sales the government's more likely to say hey we're just gonna make you file yearly because whatever you don't make a lot of money anyways so that's fine but if you start making more money then they want it quarterly because they wanna check up on you to make sure that you're doing things right if you make a lot of money they want it monthly because they want their money because now you're making money and they want their money and you know how it works so there it is I'm gonna say monthly for the purposes of the practice problem so that we can see a payment happen then we've got the California filing frequency so this is just for California but again you would think there would be similar filing requirements depending on your location so here's the source information if you wanted to check it out I'm going to save it there and so that should complete the setup process so now when I'm in the sales tab so if I hit the plus button I'm in the sales tab again we've got our information auto-save for sales tax the California is our location we just have the one and then the California department of tax we've got the nice little tag down here you've got your sales tax settings if you need to make any adjustments to the sales tax setting here's gonna be the agency if we needed to add an agency we can hit the plus button and go through the process of adding another agency as up top you can also have your custom rates down below now for the purposes of the practice problem I would like to have basically a custom rate of like five percent just to make it generic so I'm gonna try to add a custom rate and so add a custom sales tax rate and I'm just gonna say sale or test rate I'm gonna say the agency I'll keep it the California department here and I'm gonna say the rate is five percent so I'm gonna have a generic rate that I'm gonna be applying and I'm gonna say save so now we've got our generic rate on down below that we have added I'm gonna go back to our sales center up top and then you also have your economic nexus over here if you go into that it says all states have rules about collecting sales tax from out of state businesses so you've got kind of problems of course now when you have sales that are happening in different cross state lines and whatnot so if you do enough business in a state you may owe them sales tax even if you don't have a physical location there will help you figure out if you meet the threshold to pay sales tax in different states so then you can kind of dive in here and do some more research on what your sales tax obligations are when you get into more complex situations making sales in multiple locations the next thing we need to look at are the items that we set up in the prior presentations because if I hit the plus button up top we're gonna be calculating the sales tax possibly when we create an invoice or the sales receipt and the primary item that's gonna drive that just to open an invoice and take a look at it will be the item the item is gonna be the thing that's gonna say hey is this thing subject to sales tax or not so now we wanna go over to our items and look at them so I'm gonna leave without saving do you want to leave without saving I'm gonna say yes and then I'm gonna go on over to my items which is under the sales tab you'll recall if you're under the business view it's under the get paid and pay tab products and services items and I'm gonna close up the hamburger and then scroll down now I think by default it's gonna apply the sales tax so if I go in say to editing an inventory item and I scroll down now we have this sales tax item here it says taxes standard rate will apply sales tax based on location only so you could go into this and add more detail so they've got information in here so you can browse the item but notice down here we have it as taxable based on location so I'm gonna keep that as the default and so I'm gonna say that's great let's go on to the service items then which I think I'm gonna have to adjust and remove the sales tax I'm gonna say the service items will not be subject to the sales tax so I'm gonna just edit the service items this is why it probably in some ways might be easier to turn on the sales tax and then add your items but I think it's easier to see what's happening with the sales tax by doing this way so that's why we've done it this way so we're gonna edit the sales tax and this one I'm gonna say is non-taxable so I'm just gonna do this for all the service items so I've made that service item non-taxable save it and close it so that was this service item I'm gonna do the same for this one edit this service item and I'm gonna say taxes and say that it's non-taxable and that and say done and that's for the tuning so I'm gonna save it and close it and then the late fees I'm gonna edit and go down to the taxes and say this is gonna be non-taxable done, save and close for the late fees the service charge I'm gonna edit and scroll down and say that it's gonna be non-taxable save it and that's for the services so I'm gonna save and close and then the hours I'm gonna edit and say that it is non-taxable two more times non-taxable boom and then diagnostics edit and then I'm gonna say that it is non-taxable for that item boom save it and then one more time on the hourly service non-taxable and there we have it so now the inventory items are taxable and I'm saying the service items are not taxable and so we should be able to see that when we make a sales item now so if I hit so let's go to the plus button up top and just add a test transaction we won't record it but just to test it out let's open up an invoice you can also do a sales receipt but we'll just go with an invoice we made up a mock customer which we just called AAAs I'm just gonna say the AAA customer just to test it out and then we're gonna go down to the products the products should be the taxable items so I'm gonna choose say an ELP and you can see it has a checkbox automatically as it being a taxable item now sometimes you have to like click off on the second line to make sure that it applies the tax properly down below so now we've got a $500 that's what we charged for it and then the sales tax is being applied notice it's being applied by location now the customer doesn't have a location up top so therefore it's being applied by what we're saying is our sales location which is the California location and that's where it's coming up with this 47,550 you can look at the math related to it if I go into here how your sales tax is calculated we've got the location based on where you sold your item you need to collect sales tax here so notice it's actually three things that we're collecting the California rate the Los Angeles County and the Los Angeles County District and that adds up to that 9.5% on the sales tax that we're adding so notice it gets a little bit complex and QuickBooks is actually quite nicely doing that for us and the complexity will differ based on location of course and so for our practice problem we'll actually do a generic just the 5% to see the generic tax just so we can make it a generic that could be something that's in concept applicable to the whole country without kind of just focusing on California you can also change the math here if you wanted to just for a practice problem or if you needed to for whatever reason by overriding this amount and then you can apply like the 5% rate if you wanted to and then the reason because I said so, you know, other and so if for whatever reason you need to force it to do it you can overwrite it but you wanna be careful doing that we're gonna overwrite it kind of for our practice problem now if I close this out the third thing we gotta consider is the customer so remember if I go back into my customers which is under the sales tab and then my customers if you're under the business view it would be under the get paid and paid tab and then the customers and then when we set up our customers by default they're gonna be subject to sales tax based on what they bought but maybe they're not subject to the sales tax so if I go into this AAA customer for example and I edit them and I go into their sales tax information which is down here then usually the sales tax is gonna be by default based on location that's what generally happens or you can choose the 5% which is the other tax if they're subject to that so if you have multiple rates down below multiple subject to sales tax rates then you would choose the applicable one it's gonna default to the based on the location I could choose the 5% if I wanted to or I can say this customer is exempt from sales tax this customer is tax exempt why maybe they're a government agency or a charitable organization or whatever and so and I could put the details so if I did that then I close this out I go to the plus button have a new invoice and I choose everything that's the same AAA customer a product subject to sales tax and it even has its sales tax checked off but no sales tax being calculated if that happens you're gonna say why isn't it happening I got it checked off and nothing's happening well maybe the customer then is set up to not be subject to sales tax so the next thing you need to check is the customer side is it proper that the sales tax isn't being calculated even though you gotta checked off and sales tax set up and the item subject to sales tax because the customer somehow are not subject to sales tax let's close that out and try it again go back to the customer and let's edit the customer and say now that the customer is subject to a different rate so we'll say they're subject to sales tax but maybe it's that 5% rate so I'll go okay so now if I hit the plus button and I go to the invoice and I go everything's the same I go into the customer and I say okay sales tax taxable item but now the rate that's gonna be charged is the 5% as opposed to the normal California rate right and then of course it shows something that's not subject to sales tax like the service item a diagnostic then sales tax isn't applied because the item is now saying it's not subject to sales tax alright so I'm gonna close this back up by default if I go into the customers we'll go this back into the customer and say by default it's usually gonna have the default setting of the customer's taxable and then it's gonna be based on the location so that's the default unless you say something otherwise so one more thing if I record something on the invoice now you can see how complex this transaction is getting even though the data input is quite easy if I choose an inventory item then what's this gonna do the invoice is gonna increase the accounts receivable by the full amount including sales tax 54750 the other I'm not gonna actually record this by the way I'm just saying what would it do the other side is gonna go to sales the 500 driven by the item which we told it to go to the sales revenue account and then the tax is gonna go up not to an income account not to revenue but a payable account given the theory that we're not actually charging the sales tax we're just a collection agency the sales tax is being charged by the government to the customer therefore it's not income to us but a payable liability as we collect the tax and then we're gonna pay it later and because it's an inventory item inventory is gonna be going down and also the cost of goods sold is gonna be going up and the sub ledger for inventory in terms of by well the sub ledger for inventory by amount is also gonna be impacted going down the units of inventory and the customer sub ledger tracking who oases the money is gonna be impacted as well complimenting the accounts receivable so a lot's going on with just the invoice now but the data input is quite simple so once again I'm not gonna record this closing this out do you want to leave without saving I'm going to say yes sales tax now set up