New company opening balance and starting

afrilink

Hello everybody
Im not an accounts person so im not experts. We have a company and we want to start using wave software now, so i want to know now things

1. How to start using account with the current balance in the Bank, and then hence forth all the transaction should follow .
2. My company name is Afrilink, so in the chart of accounts what should be there, where should I keep the money. The money that is in the bank now, there should It show.
3. how should i start using wave from today. I want to start with the current bank balance what is in our bank.

I really need your help please

Alexia

Hi, @afrilink.

Welcome to Wave! We're happy to have you!

1. Absolutely! You can create balances for your accounts through regular transactions and journal entries. We have a small guide on coming to Wave from a different system here. It might help out.
2. You'll have to create an asset account in your Chart of Accounts to represent your bank account in Wave.
3. My first answer also answers that.

If you're looking for a great place to start learning about using Wave and about accounting, I recommend checking out Fearless Accounting, our own guide on how to best use Wave.

Let me know if you have any questions.

afrilink

Hi,
Thanks for your response When I created a company, already some chart of accounts are created in Assests. So what else do I need to do?

Alexia

Hi, @afrilink.

My biggest suggestion would be to go through Fearless Accounting, the guide I linked in my last reply. It'll explain everything you need to get started and give you some pretty solid basics in accounting too.

We do create a few accounts for your when you get started to streamline the process, but the list isn't exhaustive. You'll need to add your bank accounts as asset accounts and any credit card as liability accounts. You might have other accounts you'll need depending on the needs of your business. Your best bet is to get more familiar with accounting in general to get a better grasp of exactly what you need. That guide will help you with that.

afrilink

Hello, I gone thru the fearless accounting, it still doesnt answer my question.
Im trying to start and put a opening balance of my bank in wave. Lets say in cash management chart of accounts Im adding 10000$ , when i press save its saying there must be debit too. Debit and credit must be same....what is this?.

Lets say as of today my balance in bank is 10000$, and I want to start accounting using wave with this amount, and hence forth all the debit and credits must follow the balances. How should I start, its a simple question. Can you please guide me.

Alexia

Hi, @afrilink.

In that case, you have two options. Either simply create an income transaction to your bank account categorized to "Owner's Investment/Drawings", or create a journal transaction that debits your bank account and credits "Owner's Investment/Drawings".

What this means, in both cases, is that this starting balance was invested by you, the owner, into this transaction as a starting amount. If that money comes from some other source, a loan, for example, you would use the account created to represent that loan instead of "Owner's Investment/Drawings".