Transfers from cash on hand to bank, nonprofit
Star044
Member Posts: 6
Hi, we are a small nonprofit and receive regular cash, check, and PayPal donations from our members. I have been recording the cash and check ones as cash donations and adding to the "cash on hand" account. My problem is properly recording the deposit into our checking account from the "cash on hand" account.
Here is what I am doing, so I'd sure love it if someone could tell me what I'm doing wrong:
Create the donations as income to "cash on hand."
After collecting a few donations and depositing them, I record the transfer in Wave as a Deposit to the Bank, under "expense" - i.e. expensing it off of the "cash on hand" account. Wave creates two entries, the deposit and transfer (which says "pending")
Then when I connect to my bank account at the end of the month to reconcile it, it shows up once from the bank statement, on the Bank Account and the transfer also shows up, thus the deposit is showing (and adding to the balance) twice on the bank reconciliation.
I'd sure appreciate knowing how to record and deal with cash donations and their associated bank deposits. I was thinking maybe I should just not record the transfer/bank deposit in Wave and wait till it shows up in the bank connection update instead... but I don't know.
Thank you so much!
Comments
Hi, @Star044.
Before going any further, here's a Help Center article on transfers, just to make sure we're on the same page.
There are two ways you could do this. You could wait for your transactions to be uploaded at the end of the month. When you categorize your transfer as such, Wave will automatically search for a transaction matching the amount on the other side. Everything will be automatically without other issues.
Alternatively, you could record the whole transfer when the money is deposited. Once you upload your transactions, select both the transaction on your bank account created by the transfer, and the one uploaded from your statement, and click the "merge" button.
Either approach is fine, it's up to preference in the end.
Thank you so much! I'm doing something wrong or not getting something, here. When I select both the transaction on my bank account created by the transfer, and the one uploaded from the bank, the "merge" button is grayed out and when I hover over it, it says "cannot merge transfers."
Hi, @Star044.
The merge feature is brand new and I wasn't aware that you couldn't merge transfers. Luckily, there's an easy to work around that. You can just uncategorize your transfer, do the merge, and recategorize it as a transfer.
Ok, I'll give it a go - thank you for your response!
No problem at all, @Star044! Let me know how it goes!
Hi Alexia, I tried the merge function as you described, and it does work - but in the course of this, I decided to just wait until I update the banking transactions and then double-check those against the deposits, and categorize them. We are a small nonprofit and there is a need to keep things simple. Thank you so much! I have one more question but I will post it separately. Thank you again so much!
Happy to hear you found the solution that works best for you, and you're very welcome!