Account Setup - Totally Confused on how to do it.

Peter59

Hi All, totally new to Wave and trying to set everything up.This is for a kids sporting club. I am not accounting savvy (yet). I am totally lost around Paypal and fees. This is what I have done so far, so hope I am on the right track. I started off with the Cash on hand account (our savings and operating account). The other accounts are Petty Cash and Undeposited Funds. We operate a PayPal Here account for members purchases only, so now have a PayPal account also. There are no outgoings from PP except the fees and of course the transfers from PP to our account.account. I have linked our bank account and used the PP integration to link everyting up. The PPH fee is passed on to our members so if they pay by card they pay the item amount plus a payment convenience fee and the club then gets the full amount for the items. When they pay by card, the invoice will have a calculated payment fee added to the invoice so they are paying the invoiced amount. The fee is allocated to transaction fees. This is where I get totally lost on how to record all this. At present in our system I enter all the transactions manually. I'm hoping PP integration will take care of PP and that the linked bank account will take care of the payments made by direct deposit. Maybe I should try manually? Can someone explain from start to finish what I have to do so I get this right from the outset. Thanks in advance.

Sophia

Hi @Peter59 great questions! Getting set up can feel a little overwhelming but I have some suggestions

First things first, I would suggest indicating your savings account and business checking account (if that's what your operating account is) by creating specific accounts for these in your Chart of Accounts. Here's a runthrough of basic account types, and here's how to add a new account. The reason for this is that savings and chequing funds are not technically Cash on Hand, and also, from the sounds of it, they are separate bank accounts "in real life" outside of Wave so you'll want to keep them separate for accuracy in Wave as well.

In terms of accounting for payment fees, sometimes the easiest way to do it is manually. To account for the Paypal fee you pass on to your client, you could just add an additional line to the invoice, so that when you mark the invoice as paid the fees are automatically accounted for.

Let me know if that works for you!