how do I record a business payment made into my personal account?

louielizzylee

Hi,

Just wondering if anyone can walk me through this? I've tried myself but I cant figure it out!

I've had a customer pay my work invoice into my personal account. They we're meant to just reimburse some personal expenses into it, but have paid my entire invoice into it, rather than into the intended business account.. I've subsequently transferred the the money into my business account.

I'm now having trouble recording the initial payment and the transfer.

I've marked the invoice as paid into 'owner investment/ drawings'. Is this right? After trying to record the transfer too, the system seems to think double the amount has gone into the business.

If someone can direct me to a link explaining it, or give some pointers, that'd be great. It's been driving me crazy for hours!

thanks a million,

Louise

Alexia

Hi, @louielizzylee.

Assuming you don't also use Wave for your personal accounting, this is how I would handle it.

• Create a new bank account called Undeposited funds.
• Mark the invoice as paid into that account.
• Create an expense transaction from that account to Owner's Investments/Drawings for the amount you kept to cover your expenses.
• Create a transfer for the rest of the money from Undeposited Funds to your business bank account.

If I'm understanding your situation correctly, that should make everything add up! Does it all make sense?

Kenj

Will the receipt of transaction gets transferred from personal to the Business account? Hope it does as during audit, it will be messy to show both Personal and Business account receipts, etc and privacy concern.

Alexia

Hi, @Kenj.

In this situation, there wouldn't be a receipt. The invoice involved would have been on the business' side all along. The money was simply deposited in the wrong account by accident.

RDXOne

@Alexia said:
Hi, @louielizzylee.

Assuming you don't also use Wave for your personal accounting, this is how I would handle it.

• Create a new bank account called Undeposited funds.
• Mark the invoice as paid into that account.
• Create an expense transaction from that account to Owner's Investments/Drawings for the amount you kept to cover your expenses.
• Create a transfer for the rest of the money from Undeposited Funds to your business bank account.

If I'm understanding your situation correctly, that should make everything add up! Does it all make sense?

That's very helpful.
Can you advise how to proceed if I use Wave for my personal accounting?
Thanks!