Oh, snap. I got so into the jelly beans and general ledgers, I forgot to tell you about the chart of accounts. Here's the thing. You need, the chart of accounts because it lists all of your accounts types and even sub-accounts. It helps you separate expenses, revenue, assets and liabilities, and it can organize financial information and help generate more accurate reports. You even have the flexibility to add custom account types that work best for your business. Did you notice something I didn't point out? Yeah, account numbers. They can be created by the accountant, the bookkeeper, the owner, or any combination of the three. Let's take a closer look at the chart of accounts. The chart of accounts can be a little bit confusing. I remember early in my bookkeeping career looking at it and just realizing that it's not in alphabetical order. There's all these different names and types, and I just chose to ignore it for quite a while because I didn't really understand what was happening on a lot of these areas on the chart of accounts. I finally figured it out. I don't know when I had my epiphany, but basically it's organized not by the name, which is why it's not alphabetical, not by name, but it's organized by type. What you're going to see at the top of the chart of accounts is assets, and bank accounts, and you can see all the assets are together here. What assets are is stuff that the company owns, has value. So what do they own? Well, they have cash in the bank, which is good. That's theirs, belongs to them. Accounts receivable is also considered an asset. It's money that's going to be in these bank accounts hopefully in the next 30 days. This 42,000 should turn into cash really quick, so that's an asset. Other things might be inventory. Maybe they bought some trucks, some computer equipment, all the stuff the company owns. Next we go into debt. As soon as we get past that last asset account, we're in debt. Well, not in debt, but we have debt, accounts payable or unpaid bills, we've got credit cards, then I'll pay that off pretty quick, payroll liabilities, those should be paid out about monthly. What else do we have? Other current liabilities, a client retainer. We took some money in, but we're going to apply it to an invoice hopefully soon. Then long-term liabilities would be like a loan. Loans payable, that might be more than a year. So again, order of liquidity, credit cards and AP, you're going to pay off pretty quick. 401(k) and these other payroll liabilities, that's going to be paid probably every month. But then this loan for the car probably going to be a few years, six, seven years on that. What you're doing is you're taking your assets at the top and subtracting liabilities to get something called equity, which is the value of the business.