This was the exact thing I needed to do when I figured this out, thought I would write it up to remember in the future. This is great for a screen-sharing session where you are talking to someone and walking through an application over the computer. The Holy Grail (Adding Audio from your Microphone and your Computer while being able to hear the audio as it records)
This option routes ALL audio through Soundflower and therefore you CANNOT HEAR IT to monitor it as it is being recorded. Google “Screen recording with audio on Mac” and you will see. This is what I kept finding when trying to search for a solution. This allows you to capture the audio from your computer in your QuickTime screen recording. You can install Soundflower to route your computer’s audio back into QuickTime to record it. However, when doing so, you only get the screen – no audio. QuickTime allows you to easily do a screen recording. The Holy Grail of screen recording on Mac
