Purchases before startup

accountingquestions

I'm not sure where and how to add expenses or if I even should for things prior to starting the business. In particular:

Inventory - where do I put it as it was already paid for and I know I will need to draw for it as it is sold? Do I give it a retail or purchased value?
Assets - computers, etc.
Other expenses - advertising, web hosting, etc.

Thanks for any tips!

JamieD

Hi @accountingquestions. Right now, inventory tracking is not something that is currently offered in Wave, however, in your particular situation it sounds like that you may need to create a fixed asset account for your particular item and track the value of this item based on it's use, etc; https://support.waveapps.com/hc/en-us/articles/208623546-Simple-inventory-entry-tracking-in-Wave -- hope this helps!

accountingquestions

I guess i'm confused. on page 74 of your fearless accounting with wave guide you go over how to deal with inventory - i I am going to use the periodic method. My question is how do you get started if you are bringing already owned inventory assets into the new business - where do you place this asset if you have no transaction for the purchase as it was already owned on startup?

Mikeg

If the owner is contributing inventory then, debit inventory credit owners equity at your cost. Be sure to have a bill of sale to the business. Same with any other item paid outside of the business. The credit is either owner equity or loan from owner.