Recording cash payments not deposited

Melinda

Hi,

I’m just getting started with Wave and not sure how to handle this situation for my salon.

I receive some cash payments but I don’t deposit the money into any bank account. Instead, I’ll use that money for bills or groceries.

What is the best way to record this in Wave.

Thanks,

Barsin

Hey there @Melinda

A lot of times we count this as petty cash. You can create a petty cash account under the cash and bank chart of accounts. If you're using your personal account for classifying personal expenditures, you will want to categorize those cash payments as owners equity and add them into your personal account manually account for those personal transactions.

When it comes to Wave usability; ie how to set up your chart of accounts, or how to record journal transactions for such payments, I could gladly help, but when it comes to specific accounting questions, it would be best to have a pro answer that.

Sameers

@BarsinA said:
Hey there @Melinda

A lot of times we count this as petty cash. You can create a petty cash account under the cash and bank chart of accounts. If you're using your personal account for classifying personal expenditures, you will want to categorize those cash payments as owners equity and add them into your personal account manually account for those personal transactions.

When it comes to Wave usability; ie how to set up your chart of accounts, or how to record journal transactions for such payments, I could gladly help, but when it comes to specific accounting questions, it would be best to have a pro answer that.

How can i setup chart of account in this situation

my cash sale for 31st march is deposited in the account on April 1st , when i have imported the bank statement i have recorded the transaction as Cash Sales in Books of accounts ( Income - Cash Sales) , now i want to book it as March month sales , how can i book it as march month sales in Wave.
I am totally new over here

Thanks

Barsin

Hey there,

I think you can achieve this by creating a journal transaction for a deposit from your income account to your cash account but make the transactions date for the journal to be in March rather than April. Keep your deposit transactions the same, but debit the account with a journal transaction for the balance to appear on your March statements.