Shareholder's Split

Chelsea

Hello!

I am new to Wave. I would highly appreciate if you could assist me.

We have established a new business with 4 different owners.

My question is the following: Can I create a default percentage for each owner? For example, if any income will be received by the company, naturally it will be divided into 4 owners. Same thing on the expenses. And also, in the event, one owner has paid certain company bills, how to record them on that owner name, so the rest of the 4 owners will pay him back? (or that payment will be refunded to him and will be charged for the rest of 4 owners in the wave?

I highly appreciate your help,

thank you,

Chelsea

Alexia

Hi, @Chelsea.

You won't be able to do this automatically, you'll have to do this by hand.

I would recommend reviewing this with an accountant, but I'd suggest doing this using separate equity accounts for each of the co-owners and using journal transactions to distribute profits among them. I answered a similar question here, my answer might apply to your situation as well.

You could also separate your expenses 4-way with journal transactions and custom accounts, but you might have an easier covering your expenses with your earnings before distributing profits among your co-owners.

I strongly recommend checking in with an accountant before committing to any given method of handling. They would be in a much better position than I am to assist you in finding the best way to handle this since handling dividends and such in companies like yours is fairly advanced accounting work.