So the transfers between the owners draw/investment are "synced", but the expenses are not. I made one personal expense at Sam's by accident on my business card, and I paid for a bunch of business expenses with my personal card.
I guess what I want is for the owners draw/investment on my personal account to be added to the report on my business account, plus the Sam's purchase. Anyone know how to do this??
To be clear, on my business account, I put my accidental Sam's club purchase into the owners draw/investment account, as well as a few transfers from my business account to my personal account, and one transfer from my personal to business. These were the "synced" transfers I was talking about.
On my personal account, my owners draw is filled with these same transfers (but with the opposite debit/credit amount of course) as well as portions of things like house rent, utilities, car payment, etc that I used journal entrys to account for.
So my owners draw/investments are organized, I just want a report on my business account that includes all these business expenses that are in my personal account.
I thought about adding transactions manually for each, but I think that will mess with the reconciliation, plus there's quite a few. Is my only option to account for this manually when I'm doing my taxes?
If I follow the above and move business expense paid from personal account... to Owner's Investment/Drawings, will I be able to categorize it when it appears in business account i.e. food, software, coaching???
To record a personal transaction in a business account in both your personal profile and your business profile in Wave, please refer to the instructions below:
In your business profile in Wave, record the personal expense on the Transactions page. Select Owner Investment/Drawings as the category. In the account section, make sure you select the business account you used to make the personal transaction. This will indicate that you withdrew funds from your business account for personal reasons. The transaction should look something like this:
Next, in your personal profile in Wave, create an income transaction on your Transactions page. Select Owners Investment/Drawings as the category as well and select the personal account of your choosing. The transaction should look something like this:
To record a business transaction in a personal account, the same workflow applies. When these transactions are recorded in your accounts, they will appear on your reports such as your Balance Sheet under the equity account "Owner Investment/Drawings". If you want to re-allocate these transactions to different categories or accounts, you can record journal transactions to do so. I hope this helps!
im not sure if this was helpful or not as i still question - is "cash on hand" money i moved - FROM - personal account into -business account (wave) or would i select owner/investment drawings?
The "Owner Investment/Drawings" account should be pre-populated and found under the Equity tab on your Chart of Accounts page. If it's not there for whatever reason, you can recreate it by pressing the blue "Add a New account" button in the top right hand corner of the Chart of Accounts page.
I'm confused regarding the difference between Owners Equity Account and the Owners Investment/Drawings. Does anyone know the difference? As of now, I'm using the latter to record amounts from a personal account to cover the monthly credit card bills. Similarly, whatever personal transactions exist on the credit card. Finally, any payments to myself from the business is logged under the Owners Equity. This approach does not seem to track the extra money being injected into the business when I pay the credit card from personal funds...
How do I record profit taken out of the company? I can see total profit for the last tax year but don't know how to show/record the profit being paid out to the partners.
I tried using the equity account but that didn't take money away from the profit
When it comes to the two different accounts here, each have different names, but will essentially serve the same purpose: whenever a transaction is categorized to one of the two, it will be counted as an equity transaction.
The reason that they are distinct has to do with specificity; if you are investing or taking money from your company, this transaction should appear under 'Owner Investment / Drawings' so that your reporting can reflect the nature of the transaction. For all other situations that require the 'Owner's Equity' distinction, but do not represent a deposit or withdrawal, the other account can be used.
When it comes to using the 'Owner Investment/Drawings' account, here are the 2 primary use case scenarios and how to record them in Wave:
To account for a business transaction from a personal bank account:
Start off in the Personal profile. Categorize the expense (or receipt) to Owner Investment/Drawings. Boom, you’re done on the personal side. Head over to the business profile and add a transaction that affects the appropriate account, and categorize as Owner Investment/Drawings
To account for a personal transaction from a business account:
In the business profile, categorize the transaction that you consider to be a personal expense to “Owner Investment/Drawings.” Head over to the Personal profile and create a transaction that affects the relevant account, and categorize as “Owner Investment/Drawings.”
When I try to categorize an imported bank transaction as personal, it does not give me the option of selecting 'Owner Investment / Drawings" in the equity section. I get a message saying it must be a liability account and the only option is 'Shareholder Loan'. Do these transactions have to be posted manually as a journal transaction prior to reconciliation?
That's odd. Do you mind clarifying the type of transaction you are trying to categorize? Also, do you mind clarifying if you have an Owner Investment/Drawings category on your Accounting > Chart of Accounts page? Feel free to upload a screenshot of what you are seeing on your end. This will help me better understand the issue at hand so I can assist you further.
Still not really following.... Are you saying I have to create a wave personal profile too? I dont want to import anything form my personal accounts. I just want to record 12 transaction (for $484.99) i paid via my non business checking account before setting up my business checking account. Whats the proper way to record so my rev and expense is complete and correct?
I would like to know the opposite, how to record a business transaction that was made from a personal account. On the Transactions page, with Business Checking selected 1) Should the Account that is selected be "Amounts due to Owners"? And 2) the Category that is selected be something like "Supplies"?
Does this effect the Owner Investment/ Drawings? Does it need to effect the Owner Investment/ Drawings? Or is there another step, a journal entry perhaps, to reduce the Amounts due to Owners?
I'm confused by this. As I record money used from my business account for personal draws, reports still show me in the green. Shouldn't that money show as spent...no longer an asset? It's gone yet my reports still show me as positive. Is this accurate?
Comments
I guess what I want is for the owners draw/investment on my personal account to be added to the report on my business account, plus the Sam's purchase. Anyone know how to do this??
On my personal account, my owners draw is filled with these same transfers (but with the opposite debit/credit amount of course) as well as portions of things like house rent, utilities, car payment, etc that I used journal entrys to account for.
So my owners draw/investments are organized, I just want a report on my business account that includes all these business expenses that are in my personal account.
I thought about adding transactions manually for each, but I think that will mess with the reconciliation, plus there's quite a few. Is my only option to account for this manually when I'm doing my taxes?
If I follow the above and move business expense paid from personal account... to Owner's Investment/Drawings, will I be able to categorize it when it appears in business account i.e. food, software, coaching???
Once the charges are in our business account under the heading Owner Investment/Drawings, how can they be categorized i.e. new printer, etc.?
Hey @Alex0000 and @Kccool !
To record a personal transaction in a business account in both your personal profile and your business profile in Wave, please refer to the instructions below:
To record a business transaction in a personal account, the same workflow applies. When these transactions are recorded in your accounts, they will appear on your reports such as your Balance Sheet under the equity account "Owner Investment/Drawings". If you want to re-allocate these transactions to different categories or accounts, you can record journal transactions to do so. I hope this helps!
im not sure if this was helpful or not as i still question - is "cash on hand" money i moved - FROM - personal account into -business account (wave) or would i select owner/investment drawings?
The category 'Owners Investment/Drawings' must be added to the Chart of Accounts... it does not come pre-populated, correct?
Hey @NMN !
The "Owner Investment/Drawings" account should be pre-populated and found under the Equity tab on your Chart of Accounts page. If it's not there for whatever reason, you can recreate it by pressing the blue "Add a New account" button in the top right hand corner of the Chart of Accounts page.
Odd... it wasn't pre-populated. Only had Common Shares and Retained Earnings/Deficit. Nonetheless I added -- thanks a million @JulianP!
I'm confused regarding the difference between Owners Equity Account and the Owners Investment/Drawings. Does anyone know the difference? As of now, I'm using the latter to record amounts from a personal account to cover the monthly credit card bills. Similarly, whatever personal transactions exist on the credit card. Finally, any payments to myself from the business is logged under the Owners Equity. This approach does not seem to track the extra money being injected into the business when I pay the credit card from personal funds...
How do I record profit taken out of the company? I can see total profit for the last tax year but don't know how to show/record the profit being paid out to the partners.
I tried using the equity account but that didn't take money away from the profit
Any help appreciated.
Thanks
Hey there @edmundsecho and @DonV !
When it comes to the two different accounts here, each have different names, but will essentially serve the same purpose: whenever a transaction is categorized to one of the two, it will be counted as an equity transaction.
The reason that they are distinct has to do with specificity; if you are investing or taking money from your company, this transaction should appear under 'Owner Investment / Drawings' so that your reporting can reflect the nature of the transaction. For all other situations that require the 'Owner's Equity' distinction, but do not represent a deposit or withdrawal, the other account can be used.
When it comes to using the 'Owner Investment/Drawings' account, here are the 2 primary use case scenarios and how to record them in Wave:
To account for a business transaction from a personal bank account:
To account for a personal transaction from a business account:
When I try to categorize an imported bank transaction as personal, it does not give me the option of selecting 'Owner Investment / Drawings" in the equity section. I get a message saying it must be a liability account and the only option is 'Shareholder Loan'. Do these transactions have to be posted manually as a journal transaction prior to reconciliation?
Hey @Hawks !
That's odd. Do you mind clarifying the type of transaction you are trying to categorize? Also, do you mind clarifying if you have an Owner Investment/Drawings category on your Accounting > Chart of Accounts page? Feel free to upload a screenshot of what you are seeing on your end. This will help me better understand the issue at hand so I can assist you further.
Still not really following.... Are you saying I have to create a wave personal profile too? I dont want to import anything form my personal accounts. I just want to record 12 transaction (for $484.99) i paid via my non business checking account before setting up my business checking account. Whats the proper way to record so my rev and expense is complete and correct?
I would like to know the opposite, how to record a business transaction that was made from a personal account. On the Transactions page, with Business Checking selected 1) Should the Account that is selected be "Amounts due to Owners"? And 2) the Category that is selected be something like "Supplies"?
Does this effect the Owner Investment/ Drawings? Does it need to effect the Owner Investment/ Drawings? Or is there another step, a journal entry perhaps, to reduce the Amounts due to Owners?
I'm confused by this. As I record money used from my business account for personal draws, reports still show me in the green. Shouldn't that money show as spent...no longer an asset? It's gone yet my reports still show me as positive. Is this accurate?
How to categorize an Owner draw? the only option in Liability account is shareholder loan but this is not money that will be paid back.