I'm clearly not the only one experiencing this backwards importing, if you read the comments from MACscr and others. Your terminology is reversed, which seems to be causing your software to reverse the types of transactions. It's not just me having this issue. Call them whatever terms you want, but import deposit transactions as positive numbers and debit transactions as negative numbers. This is **NOT **currently the case.
Newbie to accounting here so bear with me. As a newbie starting a sole propriorship I have a lot of questions, but will ask just a few because once I get this much set up I should be okay with the rest of it. I hope I'm in the right catagory as I wasn't sure if to post here or in a Chart of Accounts catagory. As always, thank you for your time and consideration...
Background: I've started a business that provides a service and has very minimal expenses.
1. I bought a few supplies for my business and I paid for these supplies using my personal CC as I do not have a dedicated business CC yet. The first entry into Wave were the receipts for these expenses. This put a negative balance in the Cash on Hand catagory. Question: do I need an account in the Chart of Accounts in order to catagorize these expenses and balance the transactions?
I have entered a bill for my Business Insurance. When I make a monthly payment on this bill it is deducted correctly, so that seems to be setup fine. Question: Do I need an account in the Chart of Accounts to offset the balance owing on the bill?
I have an income recorded through an invoice with Wave and it is recorded as a revenue. However, on the banking side, I transfer a small percentage into an account that I am saving to pay the yearly taxes that will be due on the income.
Question: do I need an account in the Chart of Accounts in order to catagorize this as a short term liability so wave can better reflect my net income rather than revenue?
That's all for now. If I can get these three questions clarified, that should take care of any other such concerns that conme up. My main dilemna is with double entry accounting and gettting everything to zero and balance out. If that is even neccessary. Footnote: I don't have a problem with the accounting terminology of debits and credits. It was explained to me in basic accounting many years ago PS: If it would be easier for an admin to just go into my account and have a look around, that is certainly an option that would be appreciated
Hey @Andy_R welcome to Wave It appears the root of your questions are: is a specific chart of account required for ____. I will try my best to answer them below:
You can use your Cash on Hand account, but for the most accurate reporting, we highly recommend creating a chart of account for each credit card/bank account where business expenses are being paid from.
When creating a bill, you need to add an Item for the product Business Insurance (and when creating the item the Business Insurance, you would have had to select an expense chart of account to record it into). When you pay off the bill, you can categorize the expense transaction into the same expense chart of account (this will zero out the bill amount for that account). So yes, please create a chart of account for where you'd like Business Insurance to be recorded into!
I can't fully advise on the bookkeeping aspect of this, but a customized chart of account is always a good idea if you need to show funds being recorded into an account and if a transfer of the funds is ever needed to be recorded down the line.
While us here in Wave are able to provide technical support around how to use the app, but because we aren't accountants, we aren't able to provide accounting advice.
If you have further questions on how to navigate the app, I recommend submitting a support ticket through our chatbot, Mave. When logged into your Wave account, click on the question mark icon on the bottom right hand corner of your Wave account to access Mave to submit a support ticket!
@NancyC said:
Hey @Andy_R welcome to Wave It appears the root of your questions are: is a specific chart of account required for ____. I will try my best to answer them below:
You can use your Cash on Hand account, but for the most accurate reporting, we highly recommend creating a chart of account for each credit card/bank account where business expenses are being paid from.
When creating a bill, you need to add an Item for the product Business Insurance (and when creating the item the Business Insurance, you would have had to select an expense chart of account to record it into). When you pay off the bill, you can categorize the expense transaction into the same expense chart of account (this will zero out the bill amount for that account). So yes, please create a chart of account for where you'd like Business Insurance to be recorded into!
I can't fully advise on the bookkeeping aspect of this, but a customized chart of account is always a good idea if you need to show funds being recorded into an account and if a transfer of the funds is ever needed to be recorded down the line.
While us here in Wave are able to provide technical support around how to use the app, but because we aren't accountants, we aren't able to provide accounting advice.
If you have further questions on how to navigate the app, I recommend submitting a support ticket through our chatbot, Mave. When logged into your Wave account, click on the question mark icon on the bottom right hand corner of your Wave account to access Mave to submit a support ticket!
@NancyC thank you so much for taking the time to explain as much as you have. I will take this into consideration and try to figure things out best I can. I understand you are limited in the advise you can offer and I am considering to hire a Wave accounting coach in the fiuture if needed. Note that I am not trying to be my own accountant in any way. I just would like to have my transactions in order for when I do have someone do my bookkeeping. Thanks again for your input, I sincerely appreciate it.
Where is Cost of Goods Sold? In my old accounting program (AccountEdge) I categorized expenses such as materials, outside services that went into the cost of a service I resold under Cost of Goods Sold. These categories don't show up where I expect them, right below Income, but above the general expenses. Am I understanding accounting wrong?
Hi @FischerDes , you are correct that your expenses here would be recorded under a Cost of Goods Sold account. As for re-selling, however, these transactions would not go under the same Cost of Goods Sold account. Instead, these transactions would be recorded as income under your Sales account or another income account, if you'd prefer to create a specific one for this purpose.
To include these items for resale on an invoice, you can add the items as products through Sales > Products & Services > Add a Product/Service. When creating an invoice, you can just add those items as you would any other product or service you offer.
Comments
I'm clearly not the only one experiencing this backwards importing, if you read the comments from MACscr and others. Your terminology is reversed, which seems to be causing your software to reverse the types of transactions. It's not just me having this issue. Call them whatever terms you want, but import deposit transactions as positive numbers and debit transactions as negative numbers. This is **NOT **currently the case.
Newbie to accounting here so bear with me. As a newbie starting a sole propriorship I have a lot of questions, but will ask just a few because once I get this much set up I should be okay with the rest of it. I hope I'm in the right catagory as I wasn't sure if to post here or in a Chart of Accounts catagory. As always, thank you for your time and consideration...
Background: I've started a business that provides a service and has very minimal expenses.
1. I bought a few supplies for my business and I paid for these supplies using my personal CC as I do not have a dedicated business CC yet. The first entry into Wave were the receipts for these expenses. This put a negative balance in the Cash on Hand catagory. Question: do I need an account in the Chart of Accounts in order to catagorize these expenses and balance the transactions?
I have entered a bill for my Business Insurance. When I make a monthly payment on this bill it is deducted correctly, so that seems to be setup fine. Question: Do I need an account in the Chart of Accounts to offset the balance owing on the bill?
I have an income recorded through an invoice with Wave and it is recorded as a revenue. However, on the banking side, I transfer a small percentage into an account that I am saving to pay the yearly taxes that will be due on the income.
Question: do I need an account in the Chart of Accounts in order to catagorize this as a short term liability so wave can better reflect my net income rather than revenue?
That's all for now. If I can get these three questions clarified, that should take care of any other such concerns that conme up. My main dilemna is with double entry accounting and gettting everything to zero and balance out. If that is even neccessary. Footnote: I don't have a problem with the accounting terminology of debits and credits. It was explained to me in basic accounting many years ago
PS: If it would be easier for an admin to just go into my account and have a look around, that is certainly an option that would be appreciated 
Hey @Andy_R welcome to Wave
It appears the root of your questions are: is a specific chart of account required for ____. I will try my best to answer them below:
You can use your Cash on Hand account, but for the most accurate reporting, we highly recommend creating a chart of account for each credit card/bank account where business expenses are being paid from.
When creating a bill, you need to add an Item for the product Business Insurance (and when creating the item the Business Insurance, you would have had to select an expense chart of account to record it into). When you pay off the bill, you can categorize the expense transaction into the same expense chart of account (this will zero out the bill amount for that account). So yes, please create a chart of account for where you'd like Business Insurance to be recorded into!
I can't fully advise on the bookkeeping aspect of this, but a customized chart of account is always a good idea if you need to show funds being recorded into an account and if a transfer of the funds is ever needed to be recorded down the line.
While us here in Wave are able to provide technical support around how to use the app, but because we aren't accountants, we aren't able to provide accounting advice.
If you have further questions on how to navigate the app, I recommend submitting a support ticket through our chatbot, Mave. When logged into your Wave account, click on the question mark icon on the bottom right hand corner of your Wave account to access Mave to submit a support ticket!
@NancyC thank you so much for taking the time to explain as much as you have. I will take this into consideration and try to figure things out best I can. I understand you are limited in the advise you can offer and I am considering to hire a Wave accounting coach in the fiuture if needed. Note that I am not trying to be my own accountant in any way. I just would like to have my transactions in order for when I do have someone do my bookkeeping. Thanks again for your input, I sincerely appreciate it.
Where is Cost of Goods Sold? In my old accounting program (AccountEdge) I categorized expenses such as materials, outside services that went into the cost of a service I resold under Cost of Goods Sold. These categories don't show up where I expect them, right below Income, but above the general expenses. Am I understanding accounting wrong?
Hi @FischerDes , you are correct that your expenses here would be recorded under a Cost of Goods Sold account. As for re-selling, however, these transactions would not go under the same Cost of Goods Sold account. Instead, these transactions would be recorded as income under your Sales account or another income account, if you'd prefer to create a specific one for this purpose.
To include these items for resale on an invoice, you can add the items as products through Sales > Products & Services > Add a Product/Service. When creating an invoice, you can just add those items as you would any other product or service you offer.