Paying expenses with Personal account (Which Method is best?)
tcmccormick
Member Posts: 9
This was actually a question. Which one of these Methods are best? Are there any issues with using Method 2?
I am confused and after reading several of these posts I am not sure I have been doing this correctly. We have a couple short term rental properties and when getting them set up we have used our personal credit card to One get points and Two gives us about 30 days before we pay it off so hopefully close to producing revenue by then.
Method 1 (Code to Owner Investment using Vendor Payable and Products)
The first property we set up was about a year ago and I researched within the Wave Community and come to the conclusion I needed to enter these transactions like a Payable where I was paying a Vendor. The post said to set up a Vendor called Misc Supplies for example and a Product called Misc Supplies and pay the Bill coding it to Owner Investment. This seemed to work.
Method 2 (Use Receipt app and code receipts)
Then on the second property I stumbled across doing this in what seemed a much simpler way. I would use the Wave receipt app and send the expense. (Maybe this is a new feature) I would just code the expense to Owner Investment and Category Misc Supplies and it seems to do the same thing only much easier.
Method 3 (Have not tried this one)
Then I stumbled across this article https://support.waveapps.com/hc/en-us/articles/208622836-Handling-Business-Expenses-With-a-Personal-Bank-Account that uses Journal entries and seems way more complicated.
Method 4 (Seems similar to Method 2)
Now I see this article https://support.waveapps.com/hc/en-us/articles/360020168332 which looks similar to what I was doing with just coding my scanned receipts to Owner Investment and Misc Supplies. I have attached both my methods one using the Vendor Payable and one using the coded receipt method. Is one better than the other? Should I be using this other method with all these Journal Entries? I am not tracking our personal accounts within Wave at all just the businesses is all I am concerned about if that makes a difference.! Has something changed that makes this easier where in the past in Wave you had to do all this Payable Vendor deal and now you don't? Again, I'm confused and not sure the proper way I should handle these.
Method 1 - Vendor Payable
Method 2 - Receipt app and code