Cash and/or Cash Equivalents

OMB

Can someone please tell me where I should be allocating my cash (withdrawals) in the "transactions" tab in wave. If I take monies out of the bank in cash, how should that be categorized when I spend that cash on expenses. Also, when I run reports how to show either income or expenses from that cash. Gosh, I hope that makes sense. Thanks for any feedback.

Alexia

Hey @OMB.

So here's what you do. When you withdraw money from your bank account to have some cash on you, you're essentially doing a transfer from your bank account to the Cash on Hand account, which represents the money in your pocket.

When you would spend money on something using that cash, you'd be recording an expense against Cash on Hand.

mjglso

Hello! How do you categorize bank cash withdrawal? Also the cash withdrawn will be used for expenses so I want to ask how do you reconcile it so that you can compare how much cash on hand left from that withdrawal? Thanks in advance

Samd

Hey @mjgslo - if that cash is going to be used for expenses right away, I'd recommend categorizing the cash withdrawal as an expense, and then splitting this bulk transaction into it's constituent parts so that you can categorize each to an expense type.

Alternatively, if you are taking out the cash to spend over a period of time, you could record the expense out of your bank, and then an income transaction into Cash on Hand. Then, all you'd need to do is categorize that income transaction as 'Transfer from Bank, Credit Card, or Loan' and choose your business bank account to match up the other end of the transfer.

Then, once you actually spend the cash, just record the expense as coming out of your Cash on Hand rather than your business banking.