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transition from quickbooks self employed

cascadecascade Member Posts: 3

any tips about how to go about switching to wave? no employees, just handful of independent contractors

1-when should i switch over (jan. 1?)
2-would i need to import all transactions or can i use account statements (for example, some months I may have well over 100 credit card transactions via stripe (income and fees)
3-i have a few outstanding checks i've written to folks...how much of a hassle create?
4-should i delete all data in wave that was imported prior to my official switch over date
5--how would i confirm everything is matching up between the two accounting systems are saying the same thing (just go through the various expense categories, income, balances?)

in Using Wave

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    cascade,
    1. I would import as of 1/1/19
    2. Yes, in order to have accurate financial data, all transactions should be imported.
    3. Wouldn't that be captured by importing banking information?
    4. I would, fresh start
    5. It should agree back to your bank statement and credit card (if using)
    Mike G, CPA
    www.mgfinancial.net
    Affordable Solutions for
    Your Small Business

  • cascadecascade Member Posts: 3

    most of my income first arrives in Stripe as a credit card payment for a specific invoice (a fee by stripe and another software company comes out of that), and then it transfer to my checking account. In chart of accounts, should i create a ;bank account' or a 'money in transit account' for stripe?

  • MikegMikeg Member Posts: 995 ✭✭✭

    cascade,
    So if I thinking correctly. You issue an invoice from Wave, receive payment into Stripe, transfer net of fees to you bank account. Correct? Any balance left in Stripe (funds not transferred) would still be income to you so I would think there should be an account that represents funds held in Stripe similar to Cash.
    On a transaction level lets say you made 2 sales one for 1000 and another for 500. You were paid for both but only transferred 1000 to your bank account. Invoices issues - Debit accounts receivable - credit sales 1,500. Payment received 1,400 (fees). Debit Stripe 1400 - Debit Bank fees 100 - Credit Accounts Receivable 1500. Now transfer 1000. Debit Cash Checking - Credit Stripe 1000. Balance in checking 1000 balance in Stripe 400. You can see from those 2 transactions you would need the 400 on the balance sheet Cash Stripe in order for everything to work. I not completely familiar with the mechanics of Wave invoicing and Strip just an expert in accounting and what the end result should look like.
    Hope that helps
    Mike G, CPA
    www.mgfinancial.net
    Affordable Solutions For
    Your Small Business.

  • cascadecascade Member Posts: 3

    okay, to be more clear: I don't use wave invoicing right now. I use a third party software for my industry that utilizes Stripe (behind the scenes) so that people can pay the invoices I issue through that third party software via a credit card. You got the gist of Stripe except to say that I never leave a balance in that 'account'. it sounds like i should go to chart of accounts and open a new account under 'cash and banks' and call it something like 'stripe cash'? or is this more like a 'money in transit account'?

  • MikegMikeg Member Posts: 995 ✭✭✭
    Gotcha, so long as you don’t carry a balance then I would keep it simple and just use your bank account for recording revenue and expenses. So all transfers in from Stripe would be income. All payments out of checking would be expenses or draws.
    Keep me in mind if your looking for a CPA. I work with clients from coast to coast.
    Mike G, CPA
    www.mgfinancial.net
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