How to properly begin with Wave

cnconroy

Hello!

I have recently begun as treasurer for a non-profit and have been using Wave for the past year. In preparing for this year's year end, I noted a few issues that I hope I can get some assistance in correcting.

1. Assets, we have inventory and equipment (I have created both of those separate accounts correctly). How do I properly adjust the starting balances of those. Do I create a bill in a past fiscal period in Wave? I created a bill but it currently throws off my accounts payable.
2. Depreciation. I found a thread about long term assets and depreciation, however, I don't think it now applies. How do I handle depreciating value of inventory versus value of assets (equipment) given that they are two separate accounts.
3. Payments by Wave - this shows money in transit, however, where should this live on the balance sheet?

Thank you in advance for your assistance! About to shave my eyebrows off!

Corey
Edmonton, Canada

EmmaP

Hi Corey @cnconroy! Thanks for reaching out! To answer your first question, this Wave guide on Starting Balances should walk you through how to enter a starting balance for a particular account type!

I'd also recommend checkin out this Year-end guide, specifically on making adjustments for depreciation. It sounds like you may have found this guide on how to handle depreciation and amortization, it does have a lot of good information, but it is also good to consult an accountant on how to handle this specifically for your business.

The Payments by Wave holding account is listed as a 'Money in Transit' account in your Chart of Accounts. Because this is considered an 'Asset' account, this will show under your Balance Sheet with your other assets.