Few accounting questions for a newbie

Girn

Hi there, I run a small decorations business (creating balloon decorations, cake toppers, party favors etc)

I’m new to accounting and been trying to get my head wrapped around it. For all my supplies that I buy I post them as “office supplies” in the dropdown box in wave apps. I haven’t been able to figure out a proper designation for them.

Also, I accidently bought a personal item on my company’s credit card, how do I fix this? Should I e transfer from my personal account or refund the item?

One last question, my company has been posting a loss and every once in a while I e transfer money from my personal account to pay off my company’s credit card. What do I designate these transaction under accounting in wavesapp?

Thank you!

Girn

bump.. anyone?

Ruth_Scott_Solutions

You can set up different accounts for each type of your supplies. Office Supplies is used mostly for paper, ink, folders, etc. You could have an account for just birthday supplies or party favors. It really depends on what types of supplies you want to see how much money you are spending.

For the personal item you purchased on your company card, you can categorize it as Owner's Draw because you basically pulled money out of the business.

Is your personal credit card connected to Wave? You would categorize the payments as Owner's Investments since you are actually putting more money into your business.

Hope this helps.
Ruth