Accounting Sync: Ticket Sales Coding, Payroll Review & Annual Compilation

Hey Lottie, sorry about last week. I didn't mean to leave you high and dry, but two things come up like immediately right before, so I felt bad that I had to, I had to cancel last minute.

So, oh, all good. Gave me time to just do other stuff.

Yeah. How are you doing? Everything going well?

Yeah, just really busy. I think this month will be better. So yeah.

Yeah. Good. Um, Okay, I'll, uh, I'll let you get into your, uh, your to-do list first, and I have a couple things, but they'll, they'll be, um, too time intensive.

Okay, sounds good. Um, I'm gonna start, I'm gonna go into the email second, but first I'm gonna go into HDR. Garrett just called me. I didn't answer because it was literally right before this meeting.

Yeah.

Um, I think he's still wondering about ticket resales, which we don't really deal with necessarily in regards of coding. I was wondering if you had any idea about that.

What is he trying to figure out? He's trying to figure out— oh, look, he's calling me right now. Do you mind if I invite him to this call just to have him jump on?

Yeah, go ahead.

Hey, are you calling about the ticket resales? Yeah, okay, hold on. I'm on with Lottie right now. She didn't answer your call. She told me that she was gonna ask me. I'm gonna invite you to this call and you can explain what you're looking for. Okay, thanks. Yep. I'm a little confused as to why he doesn't just, uh, look at the, the, like all transactions with that name, but maybe I'm misunderstanding something he's looking for.

Yeah, I think it seems like he saw one or two items get coded to undeposited, so he's worried that it's not getting applied to ticket resales.

Okay, but it would be.

It's just right.

Yeah. I don't think he— I get these questions from him about like just accounting, general accounting questions. Sometimes you have to hold his hand on like how it all works. Yeah.

Yeah.

Okay. But I think the— what ticket resales effectively— so it goes in miscellaneous income under ticket resales, correct? And then the usually just get deposited to cash. But if we don't have an invoice to apply to, it just goes right into that account. Is that correct? Okay. Rather than being applied against an invoice.

Yep, exactly.

Okay. And then the undeposited funds, because this question is going to be, why is it in undeposited funds? How long does it stay in undeposited funds?

It stays until the deposit actually happens.

Okay. So it's like a couple of days, like if—

all right.

So, and then the other thing is that there were two invoices that were created and they were created by Jessica, not by us. So the two that were created got coded to Expendables. Um, and then because there are invoices, those items got put into Undeposited, which then tie out.

So it got put into Undeposited because of the way the invoice was generated. Is that right?

Because there was an invoice.

Because there was an invoice.

Yeah. Like you were saying, when there's not an invoice, it just automatically gets put into Ticket Resales. Right.

Okay. Yeah, I don't know why she would create an invoice. I wonder if that was a Garrett request.

Yeah. I'll let Min know.

Okay.

Hey Garrett. Hey Garrett.

How are you?

Good, and you?

Good.

I think you're spinning your wheels a bit on the ticket resales, Garrett. So just, you asked me what you're trying to solve for and I I think there's a pretty simple explanation.

I'm gonna solve for two things. One, really in the end, I'm just trying to make sure all the income goes into ticket sales. We can't make that happen on the invoice side. So when you said she was doing it to expendables, I'm not sure how that correlates to—

Expendables?

Yeah, the— let me find it. Ticket sales. It gets coded to 4800 in Expendables.

4800 what?

1.

I thought it went to 48007.

So the invoices that she's been creating, that Jessica's been creating, goes to 48001 Expendables. But when we get the deposit, we put it directly to Ticket Sales.

Okay, so why is Jessica creating invoices for this, Garrett?

Because we got physical checks, they weren't ACHs. So, okay. When there was a physical check, she just created an invoice to pay it against.

Okay. So that's what's causing it to be miscategorized because Jessica's not applying it or whatever line item she's using is not set up to go to the right account. So it's an issue on the invoice end that's causing that problem. Um, it's still, we just need to go through once the bank account, once it hits the bank account., then it gets applied to 48007. But while it's in the invoice status, that accrued revenue is going to show up as a net charge against the expendables.

So, okay, but the other, the other one wasn't, which I think you already identified, didn't go to ticket sales once it hit the account. And then I saw an older one from late 2024 that was in meals and entertainment. In the, in the current Invoice, you can't pick ticket sales. There's not like an option anywhere for that. Is that— so is that just because it hasn't been set up?

Yeah, we'd have to create an item called ticket resales so that can go in correctly, and then it applies it to the correct coding.

Correct. Okay, so if we can do that, we can switch this over for, for future ones. Or do you want— do you want to just tell Jessica don't even bother, just take check, deposit it, and send it to accounting and just tell them what it is?

That is the easiest. We don't need to be creating invoices for that. Um, okay. Yeah, as long as we know— I mean, the only way that it wouldn't get categorized correctly is if there's no detail around what the check is supposed to be for. But as long as, hey, this check is a ticket resale for Sweet Sale, then we know where to categorize it.

Yeah, just when we got a check, it seemed— I felt like I wanted to create a record. So if the person who sent us a check was ever like, hey, what's that? What did I pay for it the last time? Like I have nothing, no way of really looking anything up without an invoice. So I was just trying to create versus when we sell it online, there's a transaction record, not only in my account of the website that buys it, but like there's many ways to track it.

So how I typically look at the ticket resales, I'll share my screen here. Um, I would just go to the 48007 account and see—

just get a copy of the check.

Yeah, just look at the amount right here and see, all right, well, we had a $3,000 deposit, a $3,500, $3,600, and it corresponds with the date. And then if it's a check, we can just go pull the check from that date. Um, or I mean, in a perfect world, we would have like an email confirmation that we could attach to that deposit so that in the memo we know exactly what it's for. As long as that information is being relayed, we can do that.

Yeah. No. Well, yeah.

Yeah. So does that answer your question? Were you— so were you looking to see how much sweet sale we had actually sold? Is that the kind of thing?

And I noticed that— I know some stuff is missing. I feel like there might be some more flash sale missing, but maybe not. That could have been all wrapped up in that one deposit. I did see one again from late 2024 that was in meals and entertainment.

Um, yeah, 2024 we wouldn't have, um, bothered adjusting. Yeah, because we— 1/1/2025 is when we made the books like exactly how we wanted them to be. So that's probably why that fell through. Yeah.

And those within each of those deposit transactions, Jatine attaches whatever the email is that we received from Jessica. So it says on there like the invoice, the what she wants us to code things to sometimes, how it's being applied, things like that. So the email that Jessica sends us.

Yeah, but obviously she doesn't, she doesn't, she just puts it in sales and doesn't, she didn't have ticket sales as an option. So putting in sales, I thought it would have, by the time it got deposited, I thought it would make its way to here, but it sounds easier just to skip the the invoice process in the future and just go directly.

Yes.

So in the meanwhile, I don't know how to switch these.

Switch which ones?

Switch the deposit for the $3,500, the $1,000 and the $3,500. I just wanna make sure those get switched over to ticket sales.

Let's see, I think, what were the dates of the two? I know one of them is this year, which we can switch over. Let me look and see.

The one this year was March 2nd, just a few days yesterday, right?

So March 2nd, we can take care of the one on December 20th. Um, do you want us to change that, JT? JD, because that was last year's. Um, it's for $1,000.

Yeah, go ahead and change it because it's not going to change net income impact or anything like that. It's just a coding issue. So yeah, that's not a problem to change.

Okay, will do.

Thank you. 'Cause for me, our season on the suite is August to August. So that's the only way I can judge how much we sold against each year's contract.

How much do you think we'll be able to negate off that contract then?

I mean, we're at $86,000 right now, plus the $3,500 and the $1,000 that are going to be—

Yeah, just from September 11th, Or from August 1st, the first index, and September 11th, we're at $70,000 plus the $4,500 you're talking about. So that's $75,000.

That's pretty good. Yeah, but when we receive the deposit is not necessarily reflective of the event. We can receive a deposit prior to August for an event after August. And since our contract is August, that money would still apply. Even though we received it before we paid for our contract, it would go to that section. Right. So we should be 90, we should be 90, right around $100,000 of our $200,000.

We just haven't received all the cash for it yet. So you're saying—

no, we have. You've got $4,500 that still aren't in here.

So I'm seeing $70,000 in ticket sales since August 1st, 2025 to today, plus $4,500.

You can't look at August 1st because I could have sold stuff in July of last year for stuff that was post-August. So we would have gotten the money, but it belongs to a post-August event.

Okay, so that's $86,000 plus $4,500, so that's $90,000? Correct. Okay, great.

Plus some other ones. I think I sent you, did I ever send you Lou's spreadsheet?

I don't think so.

I didn't. Sometimes he'll buy some, he'll buy an event for like $2,000 and it'll just come off. Spreadsheet, so that can theoretically be applied, right? So we're, we're— when all said and done, we should be 100 plus.

Okay, and that's only halfway through the period too, so we still got more time.

Uh, no, I think NBA is like 3/4 of the way through. There's not very many games left.

Well, playoff games. So if they get playoff— do we get playoff games?

We do want the Lakers in there. Hopefully the Kings will make it.

Right. Yeah.

If the Lakers make the playoffs, that'll, that'll help.

Sweet.

I think Garrett just—

really nice ones like Ariana Grande, that $15,000 one that was Ariana Grande.

That was a big one. Yeah. Loni, what were you going to say?

Oh, I was going to say, and then Garrett, you're not going to see when I do the changes, you're not going to see a deposit or invoice. I'm going to do it via journal entry because if I change it in the actual invoice itself, it kind of messes up the invoice a little bit.

Okay, will it show up in this? Yes, as a journal entry in here. Yeah, as long as I can see the total in here. Okay, because there's going to come a day where JD and James are going to ask me how do we do, and this is what I need to pull up.

Okay, awesome. Okay, uh, all good, Garrett?

Yes.

So we're not going to bother to— just confirm, we're not going to bother to set up the coding in the invoices. I'm just going to tell Jessica If I ever hand you money, don't bother. Just send it over in an email with explanation of what it's for.

Deposit the check, send the explanation, and we'll take care of it.

Okay, cool.

Yep.

Thanks, Garrett.

Thank you. Okay, bye.

Okay, awesome. I get like 2 of those a week. You just happen to be on the receiving end of one of them.

Yeah, I was, I was talking to someone, I forget who, and I was like, I love that JD is like the in-between.

Yeah.

Yeah, it's very, very helpful.

Exactly.

Yeah. Well, you understand what's going on, so it's helpful. I have one client, they just hired a CEO who has accounting background, but they're growing big and they don't have like anyone. They didn't have anyone with accounting background for a year. And so trying to work with their director of operations and get information And then they have a part— partial CFO who's also on the outside. Unfortunately, though, he kept asking me questions like, how do you know that you have all your AP? I'm like, I don't. I ask him and then he tells me he sent it and this is what I sent. And so it's a lot of like, in my feelings of like, blame on us. But I'm like, but I'm doing everything we can. And I ask all the questions. And I explain as nicely as I can to the director of operations. There's only so much I can do if there's not an accounting person on the other end.

Yeah, it, uh, it's good that accounting is mandated in business school, but it feels like sometimes people could use a refresher course just on the, the basics of accounting. Yes, good accounting practices.

Exactly. Like, yes, I'm happy to answer all the questions. I'm also happy when there's someone with accounting knowledge that can help out, right? Yeah, exactly.

So yeah, okay, let's, uh, let's go onwards, see what we're going through here.

Um, so I'm just gonna go down the list that I sent you last week on the open items I was gonna ask. Yeah, so the first one is Zurich. If you can show me where to put the month for the payment, or the payment month, is it on the payment website?

I'm sorry, I don't— I'm not sure I understand.

Let me see.

Sorry.

There is on one of the Xeric emails you said to input the payment month because I apparently applied it to the future month.

Sorry, that was in Bill.com and Bill.com. It wasn't applying in January, it was applying in February. So that's— that was what I was referring to.

Oh, got it. Okay. Got it. All right, well, I'll check back. Thank you. Okay, um, the compilation, most of it is complete except there's just a few questions. Okay. Okay, so I pulled it up here. We have everything. I've notated everything that's saved, anything that's yours on here. Um, if you need us to look up anything, feel free to ask, like let me know, we can look it up. I'm— for this one, I'm not certain what's the difference between these two lines.

I believe they're just asking for a summary and then a detailed. That's what it looks like to me. They're saying like a summary roll forward of like the categories and then within each categories provide the detailed fixed asset depreciation schedule. Oh, so that's how I interpret it.

Um, okay. Well, we have it all in one.

Yeah, that's fine. I mean, if we have it all in one and the other thing, like, so all of this, I need to, we still need to do the debt, right? Because I'm still waiting on First Source to actually give me the statements. This is like the third time I've asked. I don't think they have statements for this, which worries me. I think. Because we're on such a unique structure that they don't have a statement that they can show me like, here is your balance. So we still need to do that. And then once we get our debt balance right, I just want to do like a fixed asset or a vehicle scope and just make sure, like do a double check, make sure every vehicle we said we sold is sold and that it's all written off. So that's probably getting it to this point. Now it probably is just down to me actually getting this like last part and doing all the double checks. So for this one specifically, if we have the file, great. I'll probably take that file and then do another check and just make sure that it actually is all accurate for the year.

Okay, sounds good. It's all uploaded in that shared drive that I sent you.

Perfect.

Okay.

Okay.

Um, this one for the ROU for rent, let me pull it up for this lease. For the Lincoln lease, we did not accrue or expense, uh, the $5,000 for rent in November, and we had asked you in the month-end query if we needed to accrue, and you said no. So I didn't know if there was a reason.

Um, it's because the, the tenant in that month paid the landlord directly. So normally the tenant pays us $10,000 and we pay Santa Monica, $5,384. And then in this month, they paid— they didn't pay us. Sorry, in this month they paid the landlord. So we didn't owe the landlord anything. The landlord actually owed us the money. Um, but we don't need to accrue it. I mean, we still did have the expense. If the sublease— is the sublease income still being recognized in that month for the—

yes. I mean, if the sublease income is still being recognized, we should accrue that, um, that month.

So for November, we have— yeah, so it would be that $10,000 one for line or row 6. So it looks like we didn't actually, because that money didn't come into the account. So we should have a sublease. We should accrue $10,000 of a sublease income, and then we should have a sublease or an expense on our lease of that $5,384.

Okay.

I'll update that. Um, this is compilation.

So then, like you're saying, the customer owes us like $4,600 or something like that.

The landlord owes us $4,600, but that got applied to future payments down the line, or like, um, like the net effect of our, uh, our property tax bill or something like that. Like, it got taken off like a tab later on.

Okay. So should we just apply that $4,600 to like the NNN that came for 2025?

Actually, I might have a statement that could, might help with this. I might just be able to send you the ledger then. Okay. Here, look at this. This is actually not exactly how I remember it, but it's effectively correct. So it was actually October. Yeah, that they sent that extra $10,000 for it right to the landlord. So we normally send $5,384. But when they sent the $10,000, it created a $10,000, right? And they got paid there and there. And then this— it got rid of our real estate property taxes hit. And so it was like a rent payment less what we owed. No, sorry, the real estate taxes less the net of $10,000 and $5,384 because we didn't pay that month where they paid them directly. So the $4,600, that additional, well, it will just create a, there should be sublease income of $10,000 and then a lease expense of $5,384. Right. So there is, there need to be that $4,600. It's kind of just becomes income at that point, like excess income. We don't need to apply that to anything, right? And there's not a journal entry required.

We would need to apply that, just a journal entry of saying that, yeah, like sublease income defers some, is it deferred or accrued sublease income? One or the other.

The $10,000 goes to sublease income and then the $53,084 just a journal entry. We do a journal entry for that saying here's what we paid in lease, but we didn't actually— there's no cash that we actually paid for that. It's just $10,000 went in sublease, we never saw the cash. $5,384 went out, we never saw the cash. And then the net effect is that we have additional income.

Yes. And I remember that statement. So I need to see where that all those journal entries for that statement that I put are.

I'll, I'll resend this to you so you have it.

Okay. And then I'll do the journal entries to make sure sublease and the rent tie out. Okay, great. So I'll update those two. All right, let's see. Okay, next question. Okay, schedule of any accrued interest. This kind of goes along with the debt that we were talking about. Yeah, and we had accrued our debt. We haven't— so in both of these accounts, both in NCMT and two-family, we have an accrued expense account and then we have an accrued interest account. What we normally do is we do an accrued interest for whatever interest is left for the rest of the month. And then at the end of the month, we reverse it out and just only do that. But any balance of accrued interest that we haven't paid, we move over to accrued expense.

Okay, sure.

Yeah, it makes sense. Yeah, so I don't know if you want us to— because this says schedule of accrued interest as of year end. Um, do you want us to leave so we journal entry basically anything that's accrued expense or accrued interest back into accrued interest or just send them both files?

So, don't worry about this one yet until I get the debt statement and I— because some of that accrued interest is now being rolled into a new payable, a new note payable, and then some of it I believe is just getting forgiven. But I need to understand how it breaks down, uh, before we do that journal entry. So I would say just leave it as is for the time being, and once I get the information I need, I can make those adjustments to those files.

Open 10 just as a reminder, but not an urgent. Yeah. Okay, awesome. Thank you. And then, uh, calculation— what is this? Calculation of deferred tax assets, liabilities, and considerations. So I saved what we had saved in our sales tax account just in the GLs. Okay. And then here for income tax expense, we don't have anything really in our accounts. So with this, or would this be like FTB, or is this like—

yeah, sales tax? No, so the income tax expense GILDT of income, it will be the FTB, but for 2025, we don't expect to have any income tax because it will show a net loss on for the partnership. So there shouldn't be any income tax outside of like minimum payments to the state of California, those kinds of things.

Okay. That's what I was thinking, but I wanted to confirm. So great. I'll go ahead and download it and save the tax file. It's for us. Gray out at least anything that's sales tax so that way they know.

Yeah, perfect. And then that sales tax, I'll have to make sure because NC&T has a balance with the other two. We will have, or two family will have paid it, but we don't pay it until 2026. So I just need to make sure that we have the right payable amount for the end of 2025 based on what we pay in 2026. But I will take a look at that and make sure that that's correct as well.

Okay. I'll double check to make sure I have the correct file saved, but I think I think I do. I'll double check one more time.

Okay. So, and then is this when you say the correct file, you're just saying in the shared drive, it, it adds up to whatever the, what is that? Column D is saying it's on line item 1 or like. Yes.

Okay. I just want to make sure I saved the sales tax file. I'm pretty sure I did. But sometimes when I talk about things, I'm like, oh, I'm just going to triple, quadruple check. Right.

Right. Okay. Um, yeah, so I need to do, I need to make sure the debt is correct. I need to make sure the vehicle assets are correct. And then sales tax. That's another one that needs to be okay.

And then anything else that we've marked as JD on here.

Yeah. All the other fun stuff that they should already have on file for us. I don't know why they send us all this, all this stuff every year. Like. Articles of Incorporation, they have that.

I don't know. That's true. Or like any sort of like the lease contracts or anything like that.

Right. Well, there's always new lease contracts, which is fun. Like they, we never, we can never go a year without doing something new. So we always have to get that over. But I'll take care of that. Yeah.

Well, I was going to send him the 842s to look at, but I was like, well, I'm saving it on here, so he'll have it and he'll tell me what's happening. So. It's fine now.

And they, I, that 842, they're just going to do a review. I don't think they're going to, like, they're just going to compile what we give them. They're not going to review it and make sure that it's like line, like completely granularly correct for better or worse. But like the ASC 842 is not that important anyway.

Yeah. Well, on here they actually asked for a recon to tie to the expense. And since I learned what they looked at last year, I tried to make sure that Oh, perfect. Notated on why it may or may not have been the same, right? Yeah. So we have that because now I do it again. Once I saw what they were looking at last year, that's why I created a recon for this year and made sure we recon pretty close to it, if not.

Yeah.

Okay, great. So we should be good. It's more like anything of like the lease write-offs or anything like that. But they'll let us know.

Yeah, they will let us know.

All right, so that's that. Um, LA business tax renewal, will you be filing it? Because it was due Friday.

Perfect.

Uh, because I think he did it last year because I don't have it saved. This is the account number and then the address to use when you're logging in.

Okay, um, I will Make a note to do that. So LA tax and that's it. P.O. Street. Okay. I'll take care of that.

Okay. Yeah. Because we just have record the copy of the P&L, so I don't know.

Yeah.

Right. Paylocity HDR email attached. Paylocity. So there was a payment for $4,607 on 1/21 for HDR and we couldn't find what that was for. I was wondering, it's probably similar to tax collection that happened for Avon as well.

I would just do what we did for Avon, um, and assume it's just an additional tax that was not collected.

All right, so we'll just expense that. Okay, and then I just wanted to check, following up on the email you had sent, an email about Sharp LV LA Kings SFF. Um, I was just confirming no 1099s needed to be submitted for that one, I don't think.

That's correct. Yeah, we're just going to save that for 2026.

Okay, perfect. Um, Silverco, Delaware, and California— I filed everything that we filed previously. Nothing was filed for Delaware 2F and Silverco since we never filed for those companies.

Okay, 2-family and Silverco are California entities, so they're not Delaware, so we shouldn't have to file for those.

Perfect. Okay, let me just make a note. So in our files.

Those were formed back in the '80s, so they, they got their own set of unique iterations.

Oh, the fun of keeping track of multiple companies, right? Okay, HDR Delaware has been filed. California, do we need to file for them?

Um, yes, we should need to file for them. Um, Delaware. And yes, because HDR was set up in 2024, so yeah, we'll need to file for, for HDR.

HDR. Do you know what the file number is? Because I looked it up, I think it's this one, but I'm not completely certain because— does it? Yes, that is correct.

Okay, okay. Wait, what were you gonna say?

Because didn't Garrett have one and then we created a new, new name for a second one, but they were really close? Or is that versus how?

And I'm getting it That is the case for Versatile for HDR. Yeah, this is right because we filed it when we acquired them in 2024. So this is when we would have filed it. So yes, this one is right.

All right, I'll go and file that then. And then Versatile for Delaware and California, do we need to file for them?

Yes.

Yes. Okay. Can you send me the entity numbers for both of them? Because Versatile as a name does not help me when I search their name.

Okay. Yeah, I imagine that can be pretty common.

Let's see. There's, there are literally hundreds for each of them. For both Delaware and California. That's why I didn't screenshot any names for you on that one.

Okay, here is the entity number. It's VS Rentals OpCo LLC. So you wouldn't even have found it if you search versatile anyway. Let me, here, I'm going to put it in the chat right here.

Okay, great.

Now, how do you chat?

That is— No, I'm like, where's the chat thing here? Here it is. I'll send you a message.

Hi.

There we go.

Okay.

All right. So that's the entity number. And then here is the entity name.

Let me save that because once we exit out, it will not, it'll go away. That first one, is that the entity name for Delaware?

Yes. Oh, sorry. The entity number is for California, not Delaware.

Oh, that one is for California. Oh, you're seeing all my homework stuff now.

I'm not looking at it.

And then you said the BS Rentals is for Delaware?

The number, those number, that number and name I send you is for California. Let me see the number. I don't actually know what number you were supposed to use. This kind of looks like it's supposed to be the number. Send a reaction.

No.

Turn on captions.

Raise hand.

I might need you to send me another message because I don't have it available for me for some reason. Oh, okay. Take notes with Gemini.

Ask Gemini. Oh, send you another message here.

Okay. Yeah, I don't know why I don't have access to that, but that's so funny. So this is the Number that is on the like, oh, perfect. Okay. I have to type it. 2025333. This is the number that's on the like seal that shows that it's duly formed. Like, you know which form I'm talking about?

Is it an LLC?

Yes, LLC.

So it looks like this. That makes sense. Okay. Yeah. Let me make— how do I make that bigger?

Oh, there it is. Yeah, I'm gonna guess that's what you need, but if it's not, let me know.

Yeah, that looks like an LLC number, which is why I said that. Yeah. Yeah, I've seen enough where usually if it starts with like a 2 and it's like a bunch of numbers, that's an LLC number. And if it's like a 9 or even like a 7 and it's only like 9 numbers versus like 12, then it's like a corporation number. So that's not due until June, I think. But I'll file it now. I like to file it all now and just be done with it.

Get them out of there.

Perfect.

Yeah.

Okay, I'll file that too. Okay, I think that's all I have.

Okay, the only thing that I wanted to just confirm was the personnel and make sure that I'm looking at right that you sent over. Thank you also for sending that. That's very helpful to get so quickly. All right, so I'm just pulling it up. So this, the grand total number is here. Now I'll just pull it. I'll download the file so we can look at it.

Yeah, can you share the screen? Yeah, I can explain it.

Nope. Okay, so this number here is with the employee's share of the payroll taxes?

So it's not with, I don't think it's with all of the payroll, employee's payroll tax, but it's at least with the FITW, the California, and then that California SDI that we were talking about that we weren't certain about. And so it's including that, which that is the employee's portion. So if we take it out, then that's when we tie closer to the amount that we owe that is on our P&L.

So is that why we thought— is that why we overestimated payroll last month? Because we were trying to use— okay, I'm gonna see the comp. And then what would be causing a negative number here?

What do you mean?

So this line has a negative.

Oh, I'm not certain.

Double-clicking that.

Oh, it's his accrual, but he would have— let me see.

Well, he was— so he went off payroll around the end of last month, so I assumed it was related to that going into January, but it shouldn't be negative. It should just be zero.

I would think it should be zero. Is that for Avon or H? That's for Avon.

Yvonne, let me look.

Wonder—

just— all right, that should be zero. At the pool. I would be— so he is listening on the pool. Oops, I don't know why, actually. Okay, what are you doing? Um. You should be the first thing you— I would be the reversal. What does mother thing has to do? I know the reversal. Did I— oh. I don't know. You're right, it should be zeroed out.

Let me— uh, give me one second, I'll be right back.

Yeah, I just copy the name from Oh, it's sweet. You love it so much you can't hear anything.

Look, hey.

Oh my God, this nipples. I can't.

Yeah, he's going to finish up small, okay? And then I'm trying to This is an account I call something. Big deal. Okay, sorry about that.

I'm back. Okay, I think Maybe what happened is for whatever reason, maybe I just didn't copy over the A through J for the approval because the numbers tie and it looks like it's really just one off, one like name off. And there were duplicates in the others, like there were duplicate— there were like two lines for two of the employees. So I'm thinking that's what happened Because all the numbers, the total amounts tie. It's just the people that are tied to those amounts didn't tie.

Oh, weird.

Okay. So I think I just maybe copied over columns K through T and then forgot to copy over A through J. Okay. That's what I think happened.

The other thing is that on HDR, the payroll cost is way lower than I would have expected. It's only $127,000, which usually we're closer to $200,000. So I'm not sure what, or if that's actually right, or if we're understating it for one reason or another.

Let me see.

It doesn't look like payroll expenses. There's only $9,000 of payroll taxes, which seems low.

Low?

I mean, the one— so on the number you gave, which is 180, that sounds pretty close. Like, I would expect— and I honestly expect the 420,000 on Avon to be about right too. 420 and 180 totaling up to like 600,000. That feels pretty close to being right. Um, but then when we exclude the, those taxes, it makes it a lot lower than I thought it would be. What was our budgeted payroll for February? $557,000.

Okay. Total for both?

Total for both, yeah, for both companies.

So then for both companies it would be about $546,000, so $547,000 about.

What is that, the sum of Oh, that is the sum of—

what numbers did I take? There's 364 plus, uh, I took the wrong one. That was 364 plus 127 plus 37. It's 529.

Okay. I mean, it would be nice if we came in under payroll, but I would— I have a hard time believing that we actually came in under payroll. Maybe we did.

Um, well, so for HDR, if you open up that one. Yeah.

Um, oh, sorry, I have it in front of me, but I don't— I'm not sharing. Uh, there you go.

So I was just trying to tie to QuickBooks to make sure that we were kind of close, right? So in QuickBooks currently we have $127,000, and then if we exclude, um, and then we have the taxes excluded, and then the $37,000 we have not yet recorded in QuickBooks. So you have to add in the $127,000 plus the $37,000 is how much we should actually have., which is about 165.

Okay.

And then to tie to the pivot, if you take the 182 minus the 21, see what that comes out to be, that comes out to be 161, which is why there's like a $3,000, essentially $4,000 difference between this pivot and what essentially will be what your total is in QuickBooks.

Right.

Okay.

Okay.

I mean, I think I'll look at that negative one too.

Yeah, let me know on the negative. Otherwise, I mean, maybe I'm just overly pessimistic and I thought we would be worse off than we are. So that is good.

Yeah, well, I'm tying to the— I'm tying to the journal entries as well as— yeah, I'm tying to the journal entries which we use for the, uh, payroll. We use their PDFs and the payroll— their payroll numbers in there. Okay, so the only thing that I can think of of why this table would be different would be there might be some codes that we're not including, but I think we've captured most of the codes, it seems. Yeah. So except for those taxes that we need to exclude.

Okay. Okay, then I'll roll with this, at least for the, um, for that preliminary report. I'm probably just going to use the higher end of the estimate so I don't I'd rather under-promise and over-deliver than the other way around. But this still gives me what I need.

So absolutely. Let me update it. Let me look at the accruals, see if I forgot to copy names over because some of that copying is very manual. So yeah, let me update that and send you a new version within like half an hour. Okay. So at least and double-check the accruals again, the names.

Yeah.

Great. Do you want me to take out the taxes excluded from the payroll numbers or leave that as a separate column to notate it still?

Uh, leave that as a column just so I can see that version, that portion of it as well. Okay, well then, okay, that was the only thing that I wanted to really discuss was just those payroll items to make sure I understood them. Um, so I'll keep an eye out for the updated versions. Thank you for doing that.

Yeah, of course. Thanks for catching those negatives.

So I'll—

that shouldn't be there. I wish James paid us to employ him. That would be nice because he's the one who had the negative value. That's what called— if he had to pay us, that would be helpful. Okay. Yeah. Let me know if you have any other questions. Shoot them over. Cool. Thanks, Lottie.

Talk to you later. Thanks, JD.

All right. Bye. Bye.