How to lay out a chart of accounts
Gabz
Member Posts: 1
Hi all,
My company uses a site to sell shirts. The website handles all the inventory for us, so we don't have to buy more than what we sell. It's a very smooth process. But I'm struggling to figure out how to set up my chart of accounts for importing the transactions.
Say person X buys a shirt at 22.99 plus tax if necessary in their jurisdiction and shipping. The website tells us how much person X spent total, how much our profit will be on said shirt, and when they made the purchase. In this example, let's say the profit is 3.14 and they made the purchase 1/18/2021. The profit on the shirt isn't available to be requested until 2/1/2021 in case more shirts are sold in the interim, but let's say we request the payout 2/15/2021.
How should I set up my accounts to accurately reflect the costs? We don't necessarily know that 5.99 was on shipping, just that the total amount they paid was 28.98 and our profit is 3.14. I can't seem to get Wave to recognise that the amount we receive isn't available until 2/1/2021. Reports say the same information for cash vs accrual method no matter if I have the date set 1/19/2021 or 2/2/2021 or 2/16/2021, so I'm wondering if I need to put information in a different account setup.
Comments
Hey @Gabz !
If I understand this correctly, I believe your best bet here is to import/create these transactions in your Wave account and split them to allocate the total amount to their appropriate accounts. When it comes to selecting/creating the most appropriate accounts on your Chart of Accounts page, I recommend reaching out to a professional CPA about this to ensure that you don't get incorrect advice on how to do your accounting.
I recommend checking out our Chart of Accounts Help Center article if you haven't already. I attached it for you below: