Dealing with Reversed Transactions

Stu78

Hi, I have anumber of transaction in my account that cancel each other out due to using 3rd party app curve.

Sometimes when I have the wrong card selected in curve app. I accidentally pay for a non business purchase with my business account (and vice versa).
(I try not to do this, but happens sometimes)

I then use curves 'go back in time' feature to reverse the transaction.
however on my account I now have an outgoing cost and an equivilenty incoming.

is the best thing just to delete them both? as they kind of cancel each other out.
or is there a better way to deal with this? (Apart from not doing it in the first place)

Thanks
Stu Mansell

AlexL

@Stu78 Hey Stu, thanks for reaching out! Your Wave transactions should essentially look identical to what's going on in the real world / your bank statement. With these dual transactions that appear (money in and then money out), if this accurately represents the proper balance, then you can leave it as is.

My last question would be that these do appear on your bank statement (or Curve statement) as showing the transaction made and then reversed, yeah? You want to be able to reconcile with this account and have the same movement, so if this appears on the statement, no need to change anything.

Stu78

Hi Alex
Thanks for your reply. Yes everything is accurate. It is a reflection of what's really going on.

But what I'm concerned about is a far as the tax man will see,
There's an out going. (Expense)
And an incoming (income) which I have to account for. However as it was a mistake and therefore reversed. It isn't really a transaction that needs to be accounted for.

I.e. (The reverse) It's not earnings so I don't want to be taxed on it.

JordanD

@Stu78 thanks for providing that additional context. In terms of the reconciliation of the accounts, it would be important to show both transactions (money in and out) so that they balance and you can compare your Wave transactions directly to your statement. As part of our Support Team, I'm afraid that we can't really speak to the tax implications of these actions, simply because we are not accountants and would hate to mislead you with information that is not relevant/doesn't apply in your jurisdiction. I would strongly advise you to speak to a Tax Professional in this case to ensure that your bookkeeping is compliant in this case.