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Negative Starting Balance

epiloepilo Member Posts: 9

Hi there,

I'm new to wave, coming over from QB Online! Love the simple UI and features of Wave..

Anyway, I'm trying to add a Starting Balance, (unfortunately) with a negative value, however, it isn't accepting this.

How can I simply add a stating balance with a negative value please..seems simple? Add a '-' before the value- right?

Please help

Thanks,
David

in Accounting Technical Support

Comments

  • epiloepilo Member Posts: 9

    Anyone help please. I can't move forward without putting an accurate starting balance in. Wave isn't accepting a negative value. :/

    Thanks

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @epilo!

    Let me start by welcoming you to Wave! Can you give me a bit more information as to what you're trying to model in the real world? What account are you trying to put in the negatives? With more information, I'll be able to tell you what might be happening, as well as how to get around it.

  • epiloepilo Member Posts: 9

    Hi there,

    I need to add a starting balance for my accounts as per your help pages: https://support.waveapps.com/hc/en-us/articles/208622796-What-is-a-starting-balance-transaction-

    I have followed how to add a deposit against owners equity ( as shown in the steps in the link above). However, my balance for the starting date is a negative value, let’s say -£300. It appears that it won’t accept a negative value when I try and save he transaction. So, the question is please, how can I add a negative starting value for my business account - epilo?

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi @Epilo.

    You would just make this transaction a withdrawal instead of a deposit.

    Can I ask what exactly you're trying to represent? If you have an overdraft on your bank account, for example, it might be more accurate to treat it as a separate liability account.

  • epiloepilo Member Posts: 9

    Thanks for the reply. I'm not sure what you mean by represent - I'm not sure I can explain any further. I thought that will all accounting you need to start from a ' starting balance' from when you want to start accounting from. In my case, I have transactions in WAVE starting from 25th May 2018 and I need to input a 'starting balance' from this date for -£xxx (a negative value). I may be misunderstanding what I need to do. In QB, I added a starting balance too. I am following the info provided here: https://support.waveapps.com/hc/en-us/articles/208622796-What-is-a-starting-balance-transaction- It doesn't mention in here about doing a withdrawal? I'm really stuck here....So can you please confirm whether I need to add a Starting Balance or not...I have connected my bank account. If I do, how can I make the starting balance negative? Please try adding a negative value to see the error. Hope you can help.

  • epiloepilo Member Posts: 9

    Update: So even if I just make it a Withdrawl instead of a Deposit...it still won't accept a negative value. Same error. It just appears that the system can't handle a negative value. Please, can you try to see the error? Really need to get this sorted otherwise I'm back off to QB :-(

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi @epilo.

    If you make it a withdrawal, it means you are removing from the account. Remove the minus sign and make it a withdrawal.

    Your transaction should appear as a £300 withdrawal, from your bank account to Owner's Equity. This will set your balance at £-300.

  • epiloepilo Member Posts: 9

    Thanks for the continued support Alexia. So I don't need to add a Starting balance as shown in the support pages.

    Following your suggestion, If I make a withdrawal for the amount (my balance without a negative value), it does seem to balance up much better. :-) Just to be clear, I am adding this as an 'Expense' and not an 'Income'? Lastly, I don't want this withdrawal shown as taxable money. What do I categorise it under my chart of accounts please? Equity Accounts - Owner Invest. / Owners Equity? Liability Accounts > Accounts Payable or something under Expense Accounts? This is effectively a withdrawal to act as a Starting Balance for my accounting move to Wave right?

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @epilo.

    You are good already! With the way that transaction is categorized, it won't appear as an expense in your reports, but a transaction between your bank account and your Equity account.

  • epiloepilo Member Posts: 9

    Hi Alexia,

    Thank you.

    I'm not sure what you mean by the way that the transaction is categorized? If you could just let me know what I need to select from the Category list against my Withdrawl. Please see attached image

    To add this starting balance, I have followed your instructions: Added a 'Transaction' > 'Add Expense' > Made a 'Withdrawl' for the balance amount > Category?, I can't leave this blank?

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @epilo.

    Your transaction is (accurately) categorized as "Owner's Investment/drawings" in your example. Categories should never be left blank for any of your transactions. You should make sure you associate each one of your transaction with the appropriate category. This will ensure you get the best and most accurate information from your accounting.

    If you'd to have a great guide for best practices with Wave, I recommend checking out Fearless Accounting. It'll help you get started with your best foot forward.

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