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Personal and/or Business Transfers and "Cash on Hand"

OMBOMB Member Posts: 3

Hi Everyone!
New to the community so thanks for anyone's feedback it's greatly appreciated :wink:
Quick question: I'm kind of in a bind when it comes to where I should allocate transfers from my business to personal account. I don't pay myself a salary but I periodically transfer monies from either account (vice versa). I'm using the "transfer to bank, credit card, or loan" option" currently, however, the only sub account it's given me is "cash on hand" under "select account to create transfer".

I'm trying to set up all three of my accounts (personal, business and other) on wave properly right out the gates and don't have any accountant experience. Thanks again!

edited February 6, 2018 in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi @OMB.

    So we're currently working to improve the workflow between the business page and the personal page. Those features aren't ready yet, however, so here's how you would account for it now.

    • On your business page, record a withdrawal from your business' bank account (or Cash on Hand, if it's what you are using), and set the category as "Owner's Investment/Drawings". That represents the money you, as the owner, take out for yourself.
    • On your personal page, add a deposit to the appropriate account with the description "Drawings from My Business" or something along those lines.

    If you want to read up on what other features are on the way, check out this article

  • gabygaby Member Posts: 3

    Just to confirm... I am the only person in my LLC, so I periodically draw from the business checking account and transfer to my personal checking to pay myself. Would your suggestion above still be the way to handle this?

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi @gaby. Exactly right. It won't show up on your income report since Owner's Drawings aren't considered a business expense, but you'll consider it as personal income for the purposes of calculating your own income tax.

  • brazmusbrazmus Member Posts: 6

    Hi there

    Just following up to see if any advancements have been made? I'm starting my Wave Journey this week and am wanting to know when it will be easier to categorise transfers from business bank accounts to an account in the Personal section.

    On the business account side, I have $100 transferred from a business account to my main personal bank account shared with my wife. Will it ever be possible to choose the actual bank accounts between both business and personal sides or do we just have to keep choosing 'owner investment / drawings'?

    Brad

  • EmmaPEmmaP Member Posts: 639 ✭✭✭

    Hi Brad @brazmus! Good question! The owner Investment/Drawing category is used to keep track of the money you pay into and take out of your business. Having these transactions flow through an equity account is the best way to reflect the movement of funds between your accounts. If you haven't already, I recommend reading this Help Center article on managing personal transactions for some further detail!

  • brazmusbrazmus Member Posts: 6

    I havent read that before but I'm pretty sure I'm doing it right.

    On the business account side, I transfer $100 from a business account to my main personal bank account shared with my wife. On the business side I choose 'owner investment / drawings' and write a note saying 'Transfer to Personal Everyday Joint Account'. On the Personal side, I find the transaction, choose 'owner investment / drawings' and write a note saying 'Transfer from business account'. Good enough?

  • ChelseaKChelseaK Member Posts: 261 ✭✭

    @brazmus Yep, you got it! Way to go. :)

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