Government Grant
Kadthulas2004
Member Posts: 3
Hi,
I'm just wondering how to enter a Start up Government Grant into my wave accounts, which Category. Is it a "Capital Interest" or anything else?
I also need to know where and how to enter Personal Investment into my wave account? Which category does it go in?
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Comments
Hey @Kadthulas2004 - I think this will depend on on whether or not the grant would represent taxable income, and I'd recommend verifying with a tax professional just in case, to make sure it is declared and tracked properly.
Assuming the grant represents an inflow of funds to support your business, and that the funds do not need to be repayed (or forfeited after a period if not all used up), I would recommend categorizing the inflow via an Equity account. You could use Wave pre-sets, or create one directly in Accounting > Chart of Accounts to specify this exact grant. You can also add a note to the transaction indicating it is a government grant.
You'd want to do the same thing for your own personal investment as well. You'd need to create an income transaction for the investment and run it through an equity account, but in this case you'd want to choose Owner Investment/Drawings.
Hello @Samd. What about the Canada/Quebec child benefit? How would you categorize it? Thanks!
Hey @Sergio. In this situation, I would definitely seek the advice of an accountant on how to properly categorize this, however, you could technically create a category that would be labelled as child benefit in the Chart of Accounts section and categorize the transactions as those.
Hello, @JamieD. Thank you!
@Samd
Thanks for that suggestion, I also need to enter a government grant into wave.
In the chart of accounts the only equity account buckets are "Business Owner Contribution and Drawing" and "Retained Earnings: Profit"; and any accounts I add need to fall within one of these categories. I am wondering whether a government grant should belong to either (probably not)...
Ideas or something I may be missing here?
Thanks in advance!
Hey @Sachin! Thanks for reaching out here, that's a great question! Wave's Support Team are able to provide technical support, but because we aren't accountants, we aren't able to provide accounting advice. While we are able to tell you how to do something in Wave, we aren't able to necessarily tell you the right way of doing it when it comes to the principles of accounting.
I would highly recommend reaching out to a registered CPA to ensure that you don't get incorrect advice on how to do your accounting. Perhaps one of our other community members who are CPAs can hop in here to help you out!
Thanks @ConnorM. I will reach out to an accountant.
Hey @Sachin , curious if you got an answer from an accountant on how to enter/categorize your taxable grant income. I'm in the same boat right now.