Help! What do I do with all the personal transactions? (It's a personal bank account linked)
ElizabethH
Member Posts: 5
I just created a sole-member LLC in Texas for my brand-new business. I am familiar with Wave in general, but have not actually used it. I don't have a business bank account yet, but will have one soon.
I connected my personal bank account to Wave as I have quite a few expenses for the business that I want to start tracking. Naturally, most of the "transactions" in Wave are my personal income and expenses and have NOTHING WHATSOEVER to do with the business. What do I do with these "transactions" in Wave? Just delete them?
(I am aware of the "Personal Expense or Withdrawal" --> "Owner Investment / Drawings" option but - from what I read - that is for personal transactions made from a business bank account. But my situation is a personal bank account that includes business expenses.)
Thanks for your help!
Comments
@ElizabethH,
The first thing I would suggest is to disconnect your personal account from the business. Next go to the transactions page and delete everything so that you are starting with a clean slate.
I like to record a journal transaction for transactions that occurred outside the business. That is located on the transaction page, top tight, under More. You would debit the expenses or assets (if that what they should be) and credit Owner Investment/Drawing. So for example, let's say you paid 100 for some office supplies and 300 to register your LLC. You would debit Office Supplies for 100 and debit Licenses for 300 then credit the Owner Investment for 400.
Hi Mike - That makes sense. I hate to have to manually enter all of the transactions I've had over the last few months getting the business up and going, but it can be done. Thank you for your help!
~ Elizabeth