New organization types? how do I convert to the new structure?

LeighL

When I first set up my business in Wave Accounting, I don't recall there being an option for "Type of Organization" on the initial creation screen. Now I see there are three options there - Sole Proprietor, Partnership, ans Corporation. I tried creating a new test business to see what the differences might be and for the most part it looks like it is just some of the default accounts that are set up and some of the naming.

That said, the accounts you now get as a default when setting up a busimess and selecting "Corporation" are more appropriate for my scenario and I wish to convert my account to that structure. It is easy enough adding the missing accounts (for example "Common Shares" under "Equity -> Business Owner Contribution and Drawing", but what about changing from "Owners Equity" to "Retained Earnings/Deficit" under "Equity -> Retained Earnings: Profit"? I tried just editing the name but I get ther error "This account cannot be archived or modified because it is a system account."

Any recommendations on how I can update my business account to the proper account types for a corporation? Is my only option to create the accounts manually and bulk edit existing transactions to use the new accounts?

AlexL

Hi @LeighL . When you set your business structure when creating your business, this cannot be changed later on. You are correct in saying that the only thing that actually differs here are the accounts, but I can understand your need to use some which you don't have if your business structure doesn't currently accurately represent your business.

In terms of solutions, you have two options:
1. Create new accounts which are representative of the accounts you're missing. This will allow you to use them when you need to.
2. Continue using the business which you created to test out the different business structure.

Let us know if you have any further questions!