Audio Record Timing

When I'm recording with an audio input device...ie bass guitar. there seems to be some timing issues. When I play back my recording with midi drums, my audio recording always seems to be happening before the drums hit. I can look at the grid and see this. I don't think I'm playing in front of the drums...but yeah, every hit is just in front of the beat marker.
 
I would think that with latency...or the time it takes me to hear the beat and play the instrument...the timing would be later than sooner. I'm guessing there is compensation somewhere? Is there an adjustment for this? 
Cheers!
Johnny

Great thanks! I'll play around with that and see if I can dial it in! ;)