Differrnt categories and businesses but one bank account

Harrisonteam

I have a rental property. Occasionally I have some expenses for that property (Home Depot, etc) and I want to be able to move those to a category for my rental property while keeping other expenses in the same bank account categorized as either personal or for a different rental property.

What is the best way have some transactions categorized as personal but others as belonging to one “business”?

AlexL

Hi @Harrisonteam . To start off, because Wave does not currently offer job or property-based accounting, this isn't directly supported within the software. There are some workarounds for your situation, but I want to make it clear that the data you'd receive while trying to account for numerous rental properties as well as personal/business expenses in the same profile cannot be separated while generating reports.

With that being said, if you want individual reporting on properties, you can create a new business per rental property so that you can track them accordingly. This would allow you to view the individual reporting per property without having it mixed in altogether.

Gautam

I have a question on how you reconcile the Bank & Credit card transactions if I setup 3 businesses for my 3 rentals?
1. Say I have setup 3 separate new businesses for my 3 rental properties., as suggested.
2. I have one Chase Bank account and one VISA CC account for my One LLC that holds all 3 rentals.
3. Now, when I charge my VISA for items for my 3 rentals ( paint, wood, drywall, etc.) and have say 15 transactions total for all 3 properties, how do I reconcile when I import the transactions directly from my CHASE bank? As I assume, I have to import the transactions for the same VISA card for all 3 rental business accounts that I setup. but for property 1 only maybe 5 transactions are related to that property out of my total 15 transactions for all 3 properties.

JulianP

Hey @Gautam !

Great question. In this case, what you'll need to do is import the transactions that are directly affiliated with the rental property/business profile in question. Then when you reconcile, you will need to determine the statement balance manually for each individual business profile/rental property. Otherwise, your books are going to be off if you use the same statement balance as if all transactions were imported for each period. I hope that helps!

Gautam

@JulianP, that is not that encouraging option
Then isn't it better to use Spreadsheet and categorize transactions for each property in a new column? then I can sort it and get the subtotal for each property?
Like create categories:
Prop1-Rent
Prop1-Paint
Prop1-Plumbing
Prop1-Lawncare
Prop1-HVAC

Prop1-Rent
Prop2-Paint
Prop2-Plumbing
Prop2-Lawncare
Prop2-HVAC
.... etc.

Can we do similar categories in ONE wave Business profile and then when I import all my CC transactions in that ONE profile, I can categorize each expense tied with individual property.... Just a thought and hope it might work overall for my LLC.
But, for tax purpose, I still have to report revenue & expenses separately... that i hope will be export the transactions in a spreadsheet (with the category marked) and calculate via that spreadsheet.
Any thought & advice on that approach?

AlexL

Hi @Gautam , the issue is that because Wave wasn't set up for property management accounting, you can definitely create those categories and categorize your expenses as such, but there's no way to actually separate them in your account to look at the different balances come tax time. It will all just be represented under one Profit & Loss report.

In regards to a spreadsheet, you could definitely separate your transactions that way if you don't mind spending the extra time.