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Family Payments/Transfer

ryanjohnstoncoryanjohnstonco Member Posts: 3

Hello!

So I've been using my accounts as personal/business but I'm going to set up a full business account so I don't have this mess. Anyway, I'm wondering what I should be putting personal/family payments through as? For example me sending my wife some cash for shopping etc. I'm going to go back over all of those transactions to correct them but I'm not sure what to set them as, at the moment it's uncategorised and anything sent to me is coming through as income...

Any help would be lovely thank you!

in Accounting Technical Support

Comments

  • SophiaSophia Member Posts: 147 ✭✭

    Hey @ryanjohnstonco thanks for your patience, our team has had a busy month :)

    If you're using one bank account for business and personal transactions, for the purposes of accurately accounting for your business transactions in Wave, you'll categorize any transactions made for your business to the appropriate category in Wave. Paid a phone bill for your home office? That's a utility expense. Printer paper? Office supplies, and so on.

    When a personal transaction comes out of that same bank account, you just need to categorize it in such a way that it doesn't affect your business records. This is easily done by categorizing the transaction to Owner Investment/Drawings. This tells Wave that was a personal expense (you took money out of the business and put it into your personal life, also known as an Owner's Draw). This article reviews these steps in detail: https://support.waveapps.com/hc/en-us/articles/208622836

    I hope this helps!

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