Segregating bank accounts into Business and Personal

flconsult

I have a two part question with questions italicized.
I set up a Wave Business account but inadvertently linked my business and personal bank checking and savings and credit card accounts to the Wave business account. I also categorized transactions tied to business spending on the chart of accounts. I now need to separate out the personal checking and credit card accounts and tie these only to my Wave Personal account as this is inaccurately classifying my business statements. However, I need to include Business expenses paid through my personal credit card and bank accounts. I have not paid any personal expenses out of my Business checking account or credit card.

Appreciate your insight.

JulianP

Hey @flconsult !

When you created your Wave account, you may have noticed that you automatically had a default "Personal" profile. You'll want to keep track of your personal expenses with this default "Personal" profile. If your personal expenses are recorded in your business profile, you'll want to export them so you can import them into your "Personal" profile. Once this is done, you can remove your personal transactions from your business profile to ensure your books are accurate.

Then, to record your business expenses paid through your personal credit card and bank accounts, you'll want to use the category Owner Investment/Drawing.

In short, Owner Investment/Drawing is a category used to keep track of the money you pay into and take out of your business.

When you pay for a personal expense from business funds (or vice versa), you'll bookkeep those transactions to owner investment/drawing to indicate that you took money from your business. When you deposit personal funds into your business, this category allows you to keep track of how much you've invested.

Feel free to learn more here.