Does linking bank account allow for it to recognise paid invoices?

Amelia

Is it possible when you have linked your bank account to Wave for it to recognise when an invoice is paid based on the payment details such as the client's name? I would like to know this before deciding to link the bank account.

I would like to you use the automatic remind feature on the invoices but I'm worried I will forget to manually log that payments have been received and clients will get reminders when they have already paid.

Thanks in advance, and sorry if this is in the wrong place, I'm new here! (I did try to search for this question before asking)

Samd

Hey @Amelia - I would say yes, but only conditionally. So, if you process payments via Payments by Wave, and connect your bank, Wave should automatically account for the invoice payment automatically. Essentially it will create an income transaction when the invoice is first paid, but this will be made into a money in transit account. Then, when your bank imports the actual deposit, it will record this as a transfer out of money in transit, and into your bank account.

Alternatively, you can replicate this manually on your end by creating a money in transit account via Accounting > Transactions. When you mark an invoice as paid, have money in transit as the income account. And then when you actually see the deposit hit your account, categorize as 'Transfer from Bank, Credit Card...' and money in transit as the origin account.

The last option I'd say with a connected account (if it wasn't paid through Payments by Wave) is to wait until your bank imports a deposit. Once this happens, categorize this deposit against an open invoice to mark it as paid/associate the transaction with the invoice. To avoid those automatic reminders being sent out, you could also record the invoice as paid as soon as you are paid, and then remove this transaction and apply the bank deposit transaction to the invoice as above once the actual payment comes through.

I hope this helps! And also welcome to the Wave Community!