Transferwise Setup Query

Thorrrr

Hi Guys
I know there is no connection to Transferwise (hope they are working on it).
What is the best way to set up Transferwise what kind of account type?
I want to add my Transferwise account to manually upload but what type of account is it?

I transfer money from checking into it to pay my VA's.

From a GBP account, I transfer to PHP but they convert it to GBP plus add a fee.

So I can just record the GBP and Fee going out but is it a Liability Account or an Asset or some other type as it is a transitional account to transfer/convert money?

JamieD

Hey @Thorrrr. In this case, your best bet is to create the account as an Asset account but make sure that it's labelled as a Money in Transit account (since you are only technically using it as an account that holds funds to transfer money to and from other asset accounts).

As for converting funds from one to the other.. could you please elaborate a little more on what exactly you would like to accomplish in Wave with this? Just trying to get a stronger sense of your workflow.

Thorrrr

H Jamie
Transferwise is like a bank account but specialises in transferring money to foreign bank accounts.
My VA's (Virtual Assistants) who work in the Philipines I transfer sterling into my Transferwise UK account. When I make a payment it is converted to the PHP account it converts it and I get a charge for converting it.
So eg
I have approx £500 balance in my Transferwise account fortnightly I pay PHP 16000 into a Phulapean Bank Account. But as I select PHP 16000 it shows £232 + £4.50 fee so I end up with £236.50 removed from my £500 balance.

So I need to show amounts of transfers from my main business account to my Transferwise also I need to show my payments and fees from my Transferwise account.

JamieD

@Thorrrr I have a suggestion for you in this particular case... not entirely sure that it's going to be 100% accurate for what you are trying to accomplish, but I feel as though it might put you in the right direction. First, you will want to make sure that you create the Transferwise account as a bank account (an asset account).

For the situation above -- there should be 3 transactions;

1. Transfer from GBP bank to Transferwise

2. Split the transfer out into PHP account into two parts

   • 232 pounds categorized to “Transfer to Bank (PHP)”
   • 4.50 categorized to Merchant Account Fees

3. You’ve got your 16000 PHP transaction, which would be the other side of the transaction.

I hope this helps/clears things up a bit for you