How to record Expenses paid from personal bank account

manu_hk

Hi,
I've been running my business the first 6 months from my personal bank account until I could open a business bank account.
I have now enter in WaveApps the transactions (expenses & incomes) managed from my personal bank account for the first 6 months. But I am confused about to enter properly the transactions:
1. When I "record a manual payment" in Bills & Receipts, what should I choose for "payment account"? Owner investment/Drawings OR the accurate payment method (cash on hand, bank transfer, etc.)?
2. If, previous anwer is "Owner investment/Drawings" , should I create 2 different accounts? one for "Owner Investment" & one for "Owner Drawings"
3. In "Transactions" - Is a business expense paid from my personal bank account a "Deposit" or Withdrawal"?
4. And what is the correct "category" in Transactions detail for a business expense paid from personal bank account?

Thanks in advance.

Jacinto_Cho

Hi Manu
1. you should first upload the bank statement. it is easier that way. a lot easier. you need to creat an account for your bank and import the data.
2. you dont need to create the accounts. If you are taking money out of the business it is a withdrawl and if you add money to the company as investment is a deposit. both can go to the same account in the equity section.
3. business expense are always withdrawal. but be careful you should use accounts payables and receivables when mixing your personal money and the business.
4. if you paid an expense from your personal account, the business should register accounts payable. so the business should reimburse you the expense of the company.

Hope this help.
If you tell me what business you have and how you work I could help you more.
you can reach me at: jcho@thinkersmakers.co

Kind regards

Charlotte

Thanks so much for jumping in to assist, @Jacinto_Cho ! @manu_hk do let us know if you have any other questions. Hope to see you both around!

Hersh

I make some transactions using an e-wallet, How do I record these transactions for proof of payment? If I use a bank account, the transactions from the bank are all uploaded automatically and show proof of transaction, but how do I show this proof from my personal accounts?
Also, when I pay using my personal is that a withdraw or a deposit? Am I deposition indirectly money into the company, that it now ows me for investing? or am I withdrawing?

Barsin

Hey there @Hersh

You should be able to create this e-wallet manually in your chart of accounts. Though you may not be able to upload the transactions automatically like a bank connection, depending on your e-wallet, you should be able to download statements and upload them manually using our CSV Uploader or WAVE CONNECT.

Alternatively you could manually add these transactions in the transactions page at the top as long as you've recreated the E-wallet in your chart of accounts.

Personal transactions

If you haven't reviewed our moving business to personal transactions help center guide, please check it out -->here<--. This transaction can be done on the personal side to mark a business expense as long as it's marked as equity movement.

kazzer

I have an issue recording expenses from personal account. These are the steps as per Wave Help Centre:
1.) Add the receipts under Purchase
2.) Add total expenses, a reimbursement and the actual transfer under transactions
The expenses have doubled (I can see that in the records under operating expenses) and I don't know which settings are wrong as I followed the instructions.
Are there any solutions to this problem?
Thanks!

kazzer

To clarify: these are business expenses from personal bank account, and were reimbursed to personal bank account from business bank account. Thanks

JulianP

Hey @kazzer !

Just a heads up, I replied to your other discussion on this issue here.