What to record in which category

Harjas

Hello, I am not a finance guy and dont understand some of the basic terminologies. I recently started using Wave for Invoicing and recording my expenses. I am actually confused on how to record my expenses and under which head. For ex, where do I categorize Payements received, Fuel expenses, shopping, utilitiy bills.
All I see is Cash on Hand and Owner Investment/drawings.. Can anyone please help.
Regards
Harjas

JulianP

Hey there @Harjas !

In Wave, when you record transactions, you can select an account and a category. The selected account is used to identify where the money movement is occurring, whether it is a debit or a credit. The category section is used to help you track the different types of income and expenses associated with your business. Your accounts and categorizes can be found on your Accounting > Chart of Accounts page. When you create a Wave account, you already have some common ones created by default. However, you can create new ones by pressing "Add a New Account" in the top right corner of the page. You can also delete any account or category by pressing the pen icon.

Wave's Support Specialists are able to provide technical support, but because we aren't accountants, we aren't able to provide accounting advice like what types of accounts and categories to select or create. While we are able to tell you how to do something in Wave, we aren't able to necessarily tell you the right way of doing it when it comes to the principles of accounting.

I would highly recommend reaching out to a registered CPA to ensure that you don't get incorrect advice on how to do your accounting. We'd also recommend checking out our Fearless Accounting Guide PDF for more information on the basics of accounting!