I understand the frustration here. The issue was that the accounting was lost behind a language layer where transactions were not being moved as equity. All I can say at this point is that our team is looking to implement these types of transactions in the future and automating it as it once was. My apologies for this issue and again I totally understand your frustration. No ETA on this, but we are hoping to address this in future updates.
This is what you said in Feb 19
"Hi guys, thanks for your valuable input on this. Our migrations to the new software have been happening on an on-going basis for some time now. With the future updates, our goal here is to get you back to a spot that will allow you to run your business successfully and easily. Stay tuned, as we will have more info on this coming in the future.
Hey @John_Mac . You're completely correct here, and this really is the truth from our end. We're finally almost all the way through moving all users over to our new accounting software. It took quite some time due to the vast amounts of complex data that some users have. When this is complete, the Accounting team will be looking at this feature as an upgrade to the software. As @BarsinA mentioned, we don't have an ETA but this is definitely one of the features we are prioritizing.
I see the "Personal Expense or Withdrawal" but can't figure out what you mean by "Select the relevant equity account." NOTHING comes up to select!!!!
WHY DID YOU CHANGE THIS!!! What's wrong with moving it out of personal & into business and vice versa?!?!?!? This is soooo confusing!!! AND has made your site completely useless!!!
Hi,
What do you recommend doing when you have a private credit card, where only some of the expenses are business related? What is the best way of importing these into Wave?
Thanks!
Svein
Any updates on this? I am pulling my hair out trying to figure out a solution that works for me. Having multiple business' set up and being able to easily move transactions between them was key for me and why I decided to use Wave in the first place. I would love this to get figured out with Wave soon.. In the meantime I'm starting to see if there are any better solutions for me in other software. Anyone figure out any good solutions to this problem?
Hi @kvog , no updates at the moment but thanks for checking in on this. We'll be sure to let everyone know as soon as soon as we have an update to share.
I am accustomed to conventional accounting in all sorts of software, but for the past 15 years in Quickbooks. I have a personal account in which I keep all my personal expenses and business accounts in which I keep all my business expenses. Straightforward. They don't mix in financial statements, and it works well for itemizing deductions and all tax situations.
When I have a personal expense, I draw it from my personal bank account.
When I have a business expense, I draw it from my business bank account.
Straightforward.
How is this supposed to work?
Thank you.
Michael Penny
Hi @hbwilson! Thanks for your feedback on this, I have passed this on to our team. In terms of looking for all transactions listed under 'Owner invest/Draw' you won't find this from the drop down list but you can find it if you use the 'filter' button from the Transactions page and under category select 'Owner invest/Draw'.
Hi @Michael_P! When you create a Wave account a 'Personal' account is automatically added. You can access it by clicking on your business name in the top left corner and then selecting 'Personal' from the drop down. You can use this account to track your personal finances and keep track of them alongside your business.
Hi @phitastic! If you are viewing 'Personal Expense' it might be an expense transaction that you are categorizing. You will only view the 'deposit from personal' category if it is an income transaction.
This page says I should choose "Personal Expense or Withdrawal" and an equity account.
However, when following the steps on this page, "Personal Expense or Withdrawal" wants me to choose a liability account.
Accounting is hard for me, and this info is just really confusing.
Should I use Equity or Liability?
Hey @itnavigate! When selecting 'Personal Expense' or 'Deposit from Personal' it should reflect any Business Owner Contribution Equity accounts you have set up. You can see what 'Business Owner Contribution' accounts you have and add new accounts under Accounting > Chart of Accounts > Equity.
Step 2 above states 'In the transaction detail view, select Deposit from Personal...'
I can't find that option. I recorded invoice payments and deposited in my personal account. Later, I transferred the money to my business account. I'm not sure how to record those transactions.
When I am at Step 2, this message pop out: "All personal transactions must flow through a liability account for proper bookkeeping. Learn more." And I cant seem to choose either Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions. Please help.
Hey @cwsink and @joyloo124! Can you post screenshots here of what those transactions currently look like within that Transactions page? Would love to see what you're seeing in order to troubleshoot this more effectively. Feel free to blur or cover any sensitive information when taking those screenshots.
Below is what I see, I realized just now that if I click "More Options", then that is where I see the "Deposit form Personal" selection. I think I've set it up correctly? (second image below)
The more options button is where you'll be able to view all of your categories here! You can search "personal" in the search bar to find the steps in this article. There you'll be able to deposit an owners equity account under the personal account.
I do not see Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions In the transaction detail view in the category drop-down.
I assumed that these were accounts that WAVE would designate, however, it looks like I just continue as I was - coding items to either owner's draw or owner's investment. Correct?
Hey @TDuvall! You're correct in that you'll want to continue to categorize those transactions as such. Depending on how your business is set up, Deposit from Personal would be synonymous with Owner's Investment/Draw.
I don't see this as an option in my transaction details view
"In the transaction detail view, select Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions from the category drop-down."
@KenCormier Are you able to provide a screenshot of your transaction details? Feel free to blur/redact any private information - we mostly want to see what you are seeing under Categories.
For example, here's a screenshot from my test account for a deposit transaction I created. When I scroll down, there's an option to declare this as a "Deposit from Personal".
When you categorize an item as "personal", there are NO SUBCATEGORIES. There is only the one option, and the transaction does not appear in the "Personal" account, as far as I can tell. What the point is supposed to be, I don't know. But I am afraid that lack of this feature is a deal killer. I'm still searching, but I suspect I will have to delete the account I just created. (A damn shame. It was SO easy to set up, and the interface is SO good in every other respect.) But as this thread shows, the organization spent a year coming up with this "new and improved" way of doing things (as if!): https://support.waveapps.com/hc/en-us/articles/208622836-Handling-business-expenses-with-a-personal-bank-account
I'm confused about what "Account" to use when accounting for a business expense paid with personal VISA. My business is a corporation. I occasionally use my personal VISA for business purchases.
I have been importing personal VISA transactions into the Personal profile in Wave to keep personal and business bank and credit accounts separate. After categorizing business expenses made with personal VISA transactions to a Shareholder Loan on the Personal profile, the transactions do not appear on the Business income side. I need to be able to zero-balance the Shareholder Loan by each fiscal year and this method is clearly not working.
I only have business accounts set up on the business side at the moment, and it's not possible to use "Shareholder Loan" as the deposit Account and also as a Category. So, given current set up, I don't know how to get business expenses paid with personal VISA to appear as transactions on the Business Shareholder Loan. Whether it's a journal entry, transaction generated from a receipt or just a new manual income entry made in the Business profile, I still have to assign an "Account" from which the transaction was made (eg. my personal VISA).
So, what do I do?....
(1) Do I download my personal VISA transactions into a Bank account on the Business profile, and assign the personal Bank account as the account for the transaction (eg. Personal VISA), and then categorize it as a Shareholder Loan or an equity account?
(2) Do I need to reconcile all of the personal VISA transactions because it's in the business profile? Or, do I leave only the business-related transactions that I am accounting for?
(3) Will the presence of personal account balances in the business profile affect the company's Retained Earnings totals?
Your Wave account always defaults with a personal account. This is where any personal transactions should appear. Your personal Visa card should not technically be hooked up to your business.
This article mostly speaks to whether you make a personal expense with your business Visa card.
If you do make a personal expense on your business Visa mark it as Personal > Owners investment drawing
I’m confused and thinking I may need to do a journal entry. I run a fresh produce business I receive a bill but a portion of that is for personal use eg bill is $300, only $100 is personal how do I record this in your system to allow for proper reporting to tax office at end of fiscal year. I have tried a few different ways but when I produce the profit and loss report it’s not being reflected??
Just want to clarify my understanding towards this thread. Please correct me YES or NO (with corrections if the answer is NO), it will be much appreciated. Thank you
Casestory...
I am using my "BUSINESS BANK ACCOUNT" for both personal and business income/spending
When i signed up WAVE, i have "PERSONAL account" created automatically. Therefore, i created another "BUSINESS account" under the same WAVE USER ID
I do not care much with proper accounting on my "PERSONAL account", but i do care with my "BUSINESS account"
I totally understand that any personal income/expenses that i categorize into Owner Investment/Drawing in my "BUSINESS account" will not shown up at my "PERSONAL account" and i WILL NOT manually created those transactions into "PERSONAL account" as i dont think i need to keep in track my own spending
Question...
If i follow the thread post, and i categorize all my personal income/expenses (either include GST or non GST transaction) into Owner Investment/Drawing inside "BUSINESS account" category.
(1) - Will ANY of the reports (including tax reports) created under "BUSINESS account" also include these personal transactions info (owner investment/drawing as well as tax info)?
Will personal income/expenses that i categorize into owner investment/withdraw under "BUSINESS account" be ADDED into my business expenses/incomes, which in the end effecting the profit and los statement?
(2) If it does, how do i separate those information, in order for me to get reports JUST on my business activities WITHOUT any info on personal transactions?
Can someone please respond to my query below? It's been almost a month.
Recommendation: video tutorial would be useful instead of an endless and confusing string of conflicting advice and instructions. The info about use of Owner Equity and Shareholder Loan is inconsistent in this forum, while it's clear that distinguishing between how to manage personal transactions by corporations vs SP/Partnerships would be hugely useful to many members here. Your members are having trouble PIECING TOGETHER the fragmented posts with instructions on how to handle business transactions with personal bank accounts.
The presence of the Personal profile is confusing too. What's the point of it since it doesn't communicate in any way with the business profiles? A tutorial on WHY the Personal profile is useful would be a good idea, and when to use it and when not to bother. Its presence implies that it should be used. Right now, however, I fail to see the value, given the ridiculous amount of time it takes to manually reproduce transactions from personal accounts on the Shareholder Loan or Equity accounts on the business side.
Why not just import transactions from personal accounts in the business profile and bulk edit them to the appropriate Shareholder Loan or Equity account?
And hence, back to may original query below: What is the best way to do this so I can save 2-3 hours per week on doing accounting work that used to be completely automated and, through the mysterious recent upgrade, "improved" in a way that kills half a day per week for me now?
Help please.
@Canaczech said:
I'm confused about what "Account" to use when accounting for a business expense paid with personal VISA. My business is a corporation. I occasionally use my personal VISA for business purchases.
I have been importing personal VISA transactions into the Personal profile in Wave to keep personal and business bank and credit accounts separate. After categorizing business expenses made with personal VISA transactions to a Shareholder Loan on the Personal profile, the transactions do not appear on the Business income side. I need to be able to zero-balance the Shareholder Loan by each fiscal year and this method is clearly not working.
I only have business accounts set up on the business side at the moment, and it's not possible to use "Shareholder Loan" as the deposit Account and also as a Category. So, given current set up, I don't know how to get business expenses paid with personal VISA to appear as transactions on the Business Shareholder Loan. Whether it's a journal entry, transaction generated from a receipt or just a new manual income entry made in the Business profile, I still have to assign an "Account" from which the transaction was made (eg. my personal VISA).
So, what do I do?....
(1) Do I download my personal VISA transactions into a Bank account on the Business profile, and assign the personal Bank account as the account for the transaction (eg. Personal VISA), and then categorize it as a Shareholder Loan or an equity account?
(2) Do I need to reconcile all of the personal VISA transactions because it's in the business profile? Or, do I leave only the business-related transactions that I am accounting for?
(3) Will the presence of personal account balances in the business profile affect the company's Retained Earnings totals?
Hey @Beezy , you can split out the expense transaction into two amounts in your Transactions page and categorize the personal amount as Owner Investment/Drawing.
Hi @AussieAussie , these will not be included in your Profit & Loss Report affecting your business balances, which is the reason that this account exists. It omits this from your reports so that these transactions are still existing in your account without having an effect on your balances.
Hi @Canaczech , Barsin responded to your question above if you scroll to the first response on this page. To further this conversation though, we appreciate your feedback on how this can be improved to offer more guidance to our users and I'd be more than happy to pass your ideas along to the team!
In regards to the Personal profile, this is intended to track only Personal transactions. If you have no desire to track Personal transactions, there's no need to use this Profile.
Hi @BarsinA, thank you for your reply. Your answer only partially explains what I need to do. The screenshots are based on the idea that the payment account is "Checking" and it is a personal expense. I assume that the screenshot originates from the Business Profile.
My question is addressing exactly the opposite scenario:
The payment account is "Personal Account" and it is a business expense. I don't want to track my personal expenses in Wave (been using Mint for that for many years), so I am asking how do I record a Personal Account (VISA) as payment account on the Business profile side when the expense category is "Meals & Entertainment", "Travel" or "Phone"? The screenshots suggest that I should import Personal VISA transactions into the Business profile so I can follow your suggested workflow.
If the screenshot is from Personal profile, then I still need to be able to have that info on the business side. So, how do I record the payment account on the Business side when it's a personal account?
Comments
Hey @Waterl @Danni @Jennywi123
I understand the frustration here. The issue was that the accounting was lost behind a language layer where transactions were not being moved as equity. All I can say at this point is that our team is looking to implement these types of transactions in the future and automating it as it once was. My apologies for this issue and again I totally understand your frustration. No ETA on this, but we are hoping to address this in future updates.
This is what you said in Feb 19
"Hi guys, thanks for your valuable input on this. Our migrations to the new software have been happening on an on-going basis for some time now. With the future updates, our goal here is to get you back to a spot that will allow you to run your business successfully and easily. Stay tuned, as we will have more info on this coming in the future.
February 28, 2019"
So nearly 1 year now & still no update !!!!
Hey @John_Mac . You're completely correct here, and this really is the truth from our end. We're finally almost all the way through moving all users over to our new accounting software. It took quite some time due to the vast amounts of complex data that some users have. When this is complete, the Accounting team will be looking at this feature as an upgrade to the software. As @BarsinA mentioned, we don't have an ETA but this is definitely one of the features we are prioritizing.
I see the "Personal Expense or Withdrawal" but can't figure out what you mean by "Select the relevant equity account." NOTHING comes up to select!!!!
WHY DID YOU CHANGE THIS!!! What's wrong with moving it out of personal & into business and vice versa?!?!?!? This is soooo confusing!!! AND has made your site completely useless!!!
Hi,
What do you recommend doing when you have a private credit card, where only some of the expenses are business related? What is the best way of importing these into Wave?
Thanks!
Svein
Any updates on this? I am pulling my hair out trying to figure out a solution that works for me. Having multiple business' set up and being able to easily move transactions between them was key for me and why I decided to use Wave in the first place. I would love this to get figured out with Wave soon.. In the meantime I'm starting to see if there are any better solutions for me in other software. Anyone figure out any good solutions to this problem?
Hi @kvog , no updates at the moment but thanks for checking in on this. We'll be sure to let everyone know as soon as soon as we have an update to share.
Based on Waves' Sophia C update to this page Feb 14 2020 15:04:
Better! Halfway there. Thank you.
Now can you please set up the "opposite" to occur from a Personal profile? That way when I split the shared cel phone bill, I can move the business portion to the Business profile. As far as I can tell, this still has to be done manually as described here: https://support.waveapps.com/hc/en-us/articles/208622836-Handling-business-expenses-with-a-personal-bank-account. (page Updated Feb 07, 2020 15:27)
Until then, could you please cross-refer this page with that one? It has taken weeks to find/figure this out.
Now, can you please explain why I can't see all transactions called "Owner Investment/Drawing" ? In Transactions, it doesn't show in the account list.
I am accustomed to conventional accounting in all sorts of software, but for the past 15 years in Quickbooks. I have a personal account in which I keep all my personal expenses and business accounts in which I keep all my business expenses. Straightforward. They don't mix in financial statements, and it works well for itemizing deductions and all tax situations.
When I have a personal expense, I draw it from my personal bank account.
When I have a business expense, I draw it from my business bank account.
Straightforward.
How is this supposed to work?
Thank you.
Michael Penny
"Deposit from Personal" does not appear in my menu, only "Personal Expense or Withdrawal". Is this something that is still being rolled out?
Hi @hbwilson! Thanks for your feedback on this, I have passed this on to our team. In terms of looking for all transactions listed under 'Owner invest/Draw' you won't find this from the drop down list but you can find it if you use the 'filter' button from the Transactions page and under category select 'Owner invest/Draw'.
Hi @Michael_P! When you create a Wave account a 'Personal' account is automatically added. You can access it by clicking on your business name in the top left corner and then selecting 'Personal' from the drop down. You can use this account to track your personal finances and keep track of them alongside your business.
Hi @phitastic! If you are viewing 'Personal Expense' it might be an expense transaction that you are categorizing. You will only view the 'deposit from personal' category if it is an income transaction.
This page says I should choose "Personal Expense or Withdrawal" and an equity account.
However, when following the steps on this page, "Personal Expense or Withdrawal" wants me to choose a liability account.
Accounting is hard for me, and this info is just really confusing.
Should I use Equity or Liability?
Hey @itnavigate! When selecting 'Personal Expense' or 'Deposit from Personal' it should reflect any Business Owner Contribution Equity accounts you have set up. You can see what 'Business Owner Contribution' accounts you have and add new accounts under Accounting > Chart of Accounts > Equity.
Step 2 above states 'In the transaction detail view, select Deposit from Personal...'
I can't find that option. I recorded invoice payments and deposited in my personal account. Later, I transferred the money to my business account. I'm not sure how to record those transactions.
When I am at Step 2, this message pop out: "All personal transactions must flow through a liability account for proper bookkeeping. Learn more." And I cant seem to choose either Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions. Please help.
Hey @cwsink and @joyloo124! Can you post screenshots here of what those transactions currently look like within that Transactions page? Would love to see what you're seeing in order to troubleshoot this more effectively. Feel free to blur or cover any sensitive information when taking those screenshots.
Below is what I see, I realized just now that if I click "More Options", then that is where I see the "Deposit form Personal" selection. I think I've set it up correctly? (second image below)
Hey @cwsink
The more options button is where you'll be able to view all of your categories here! You can search "personal" in the search bar to find the steps in this article. There you'll be able to deposit an owners equity account under the personal account.
I do not see Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions In the transaction detail view in the category drop-down.
I assumed that these were accounts that WAVE would designate, however, it looks like I just continue as I was - coding items to either owner's draw or owner's investment. Correct?
Hey @TDuvall! You're correct in that you'll want to continue to categorize those transactions as such. Depending on how your business is set up, Deposit from Personal would be synonymous with Owner's Investment/Draw.
I don't see this as an option in my transaction details view
"In the transaction detail view, select Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions from the category drop-down."
What am I missing????
@KenCormier Are you able to provide a screenshot of your transaction details? Feel free to blur/redact any private information - we mostly want to see what you are seeing under Categories.
For example, here's a screenshot from my test account for a deposit transaction I created. When I scroll down, there's an option to declare this as a "Deposit from Personal".
When you categorize an item as "personal", there are NO SUBCATEGORIES. There is only the one option, and the transaction does not appear in the "Personal" account, as far as I can tell. What the point is supposed to be, I don't know. But I am afraid that lack of this feature is a deal killer. I'm still searching, but I suspect I will have to delete the account I just created. (A damn shame. It was SO easy to set up, and the interface is SO good in every other respect.) But as this thread shows, the organization spent a year coming up with this "new and improved" way of doing things (as if!): https://support.waveapps.com/hc/en-us/articles/208622836-Handling-business-expenses-with-a-personal-bank-account
I'm confused about what "Account" to use when accounting for a business expense paid with personal VISA. My business is a corporation. I occasionally use my personal VISA for business purchases.
I have been importing personal VISA transactions into the Personal profile in Wave to keep personal and business bank and credit accounts separate. After categorizing business expenses made with personal VISA transactions to a Shareholder Loan on the Personal profile, the transactions do not appear on the Business income side. I need to be able to zero-balance the Shareholder Loan by each fiscal year and this method is clearly not working.
I only have business accounts set up on the business side at the moment, and it's not possible to use "Shareholder Loan" as the deposit Account and also as a Category. So, given current set up, I don't know how to get business expenses paid with personal VISA to appear as transactions on the Business Shareholder Loan. Whether it's a journal entry, transaction generated from a receipt or just a new manual income entry made in the Business profile, I still have to assign an "Account" from which the transaction was made (eg. my personal VISA).
So, what do I do?....
(1) Do I download my personal VISA transactions into a Bank account on the Business profile, and assign the personal Bank account as the account for the transaction (eg. Personal VISA), and then categorize it as a Shareholder Loan or an equity account?
(2) Do I need to reconcile all of the personal VISA transactions because it's in the business profile? Or, do I leave only the business-related transactions that I am accounting for?
(3) Will the presence of personal account balances in the business profile affect the company's Retained Earnings totals?
Thanks in advance for your feedback.
Hey there @Canaczech
Your Wave account always defaults with a personal account. This is where any personal transactions should appear. Your personal Visa card should not technically be hooked up to your business.
This article mostly speaks to whether you make a personal expense with your business Visa card.
If you do make a personal expense on your business Visa mark it as Personal > Owners investment drawing
Hopefully this helps.
I’m confused and thinking I may need to do a journal entry. I run a fresh produce business I receive a bill but a portion of that is for personal use eg bill is $300, only $100 is personal how do I record this in your system to allow for proper reporting to tax office at end of fiscal year. I have tried a few different ways but when I produce the profit and loss report it’s not being reflected??
Hi,
Thanks for the great software...
Just want to clarify my understanding towards this thread. Please correct me YES or NO (with corrections if the answer is NO), it will be much appreciated. Thank you
Casestory...
Question...
If i follow the thread post, and i categorize all my personal income/expenses (either include GST or non GST transaction) into Owner Investment/Drawing inside "BUSINESS account" category.
(1) - Will ANY of the reports (including tax reports) created under "BUSINESS account" also include these personal transactions info (owner investment/drawing as well as tax info)?
(2) If it does, how do i separate those information, in order for me to get reports JUST on my business activities WITHOUT any info on personal transactions?
Pls kindly advise. Thank you
Can someone please respond to my query below? It's been almost a month.
Recommendation: video tutorial would be useful instead of an endless and confusing string of conflicting advice and instructions. The info about use of Owner Equity and Shareholder Loan is inconsistent in this forum, while it's clear that distinguishing between how to manage personal transactions by corporations vs SP/Partnerships would be hugely useful to many members here. Your members are having trouble PIECING TOGETHER the fragmented posts with instructions on how to handle business transactions with personal bank accounts.
The presence of the Personal profile is confusing too. What's the point of it since it doesn't communicate in any way with the business profiles? A tutorial on WHY the Personal profile is useful would be a good idea, and when to use it and when not to bother. Its presence implies that it should be used. Right now, however, I fail to see the value, given the ridiculous amount of time it takes to manually reproduce transactions from personal accounts on the Shareholder Loan or Equity accounts on the business side.
Why not just import transactions from personal accounts in the business profile and bulk edit them to the appropriate Shareholder Loan or Equity account?
And hence, back to may original query below: What is the best way to do this so I can save 2-3 hours per week on doing accounting work that used to be completely automated and, through the mysterious recent upgrade, "improved" in a way that kills half a day per week for me now?
Help please.
Hey @Beezy , you can split out the expense transaction into two amounts in your Transactions page and categorize the personal amount as Owner Investment/Drawing.
Hi @AussieAussie , these will not be included in your Profit & Loss Report affecting your business balances, which is the reason that this account exists. It omits this from your reports so that these transactions are still existing in your account without having an effect on your balances.
Hi @Canaczech , Barsin responded to your question above if you scroll to the first response on this page. To further this conversation though, we appreciate your feedback on how this can be improved to offer more guidance to our users and I'd be more than happy to pass your ideas along to the team!
In regards to the Personal profile, this is intended to track only Personal transactions. If you have no desire to track Personal transactions, there's no need to use this Profile.
Hi @BarsinA, thank you for your reply. Your answer only partially explains what I need to do. The screenshots are based on the idea that the payment account is "Checking" and it is a personal expense. I assume that the screenshot originates from the Business Profile.
My question is addressing exactly the opposite scenario:
The payment account is "Personal Account" and it is a business expense. I don't want to track my personal expenses in Wave (been using Mint for that for many years), so I am asking how do I record a Personal Account (VISA) as payment account on the Business profile side when the expense category is "Meals & Entertainment", "Travel" or "Phone"? The screenshots suggest that I should import Personal VISA transactions into the Business profile so I can follow your suggested workflow.
If the screenshot is from Personal profile, then I still need to be able to have that info on the business side. So, how do I record the payment account on the Business side when it's a personal account?
Like this?