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Selling common shares

JB1221JB1221 Member Posts: 1

Hey there,

I'm trying to figure out how to account for an investment from an angel investor in my transactions. It's not quite a shareholder loan, and I'm not sure if the Common Equity account makes sense here. If someone invested $100k into your business and it showed up in your bank account, how would you chronicle it? Bonus points on how to do so with a SAFE note / convertible debt investment.

Thanks!

in Accounting Technical Support

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hello @JB1221 !

    In Wave, any investments into your business can be recorded into an equity account. You should already have an equity account for your personal investments in Accounting > Chart of Accounts, but you can also add another for other investors if needed. Once you've done that, you can add an income transaction for the investment into Accounting > Transactions and categorize it to Personal > Equity Account. For information more specific to your case, I suggest reaching out to a professional CPA to make sure you get the most accurate accounting advice.

    edited December 8, 2020
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