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Escrow based accounting
NMAA
Member Posts: 4
Hi all,
Does waveapps support escrow based accounting?
This is because the payment received from a depositor/customer need to be put under liability(created special acc. under liability in my current accounting software) before i pull it back and pay the 2nd party/receiver.
I've created inv in waveapps and looks like it only take income as the account category for invoice.
Im planning to migrate to waveapps since it has api integration.
Does waveapps support escrow based accounting?
This is because the payment received from a depositor/customer need to be put under liability(created special acc. under liability in my current accounting software) before i pull it back and pay the 2nd party/receiver.
I've created inv in waveapps and looks like it only take income as the account category for invoice.
Im planning to migrate to waveapps since it has api integration.
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@NMAA Thanks for the idea! At this time, Wave is mainly accrual based but we do offer our reports on a cash-basis now too! If you head to Reports and select a report, there will be a Report Type option which will allow you to select from either Accrual or Cash based options.
@NMAA,
I recommend keeping escrows (like you describe) account off of Wave. The reason being is that it requires a lot of journal entries to keep accurate since deposits and disbursements do not affect the profit and loss. Every deposit would be a debit to the asset and a credit to the liability. Every disbursement would be the opposite. Debit the liability and credit the asset. They should always agree to each other. I have several attorneys as clients with trust funds. Those are keep on an excel spreadsheet rather than recording the transactions in Wave.
> @NMAA,
> I recommend keeping escrows (like you describe) account off of Wave. The reason being is that it requires a lot of journal entries to keep accurate since deposits and disbursements do not affect the profit and loss. Every deposit would be a debit to the asset and a credit to the liability. Every disbursement would be the opposite. Debit the liability and credit the asset. They should always agree to each other. I have several attorneys as clients with trust funds. Those are keep on an excel spreadsheet rather than recording the transactions in Wave.
Ya.
Just tested it.
It can be done. But just need to implement extra step if using waveapp.
But if this possible to be operate via api, shouldnt be a problem at all. But a huge mess if api srver going down.