Account "Due to You and Other Business Owners"

Steve_MSLLC

Hello all! Just getting started with Wave Accounting (Experienced with QB Premier). I am just getting set up and saw the account section under Liabilities and Credit Cards: "Due to You and Other Business Owners". Sounded perfect for my use since two of us have/do spend often out of our personal accounts. I was hoping that I could enter an expense transaction against this account, then categorize the expense, just like a credit card. Then we'll pay it off to the person in a lump sum to reimburse them. But, these accounts don't show in the drop-down for the payment account when trying to enter the transaction. Other loans and LOC's do. How should these accounts be used???

OrionsBelts

It's probably because those aren't set to be payments accounts, @Steve_MSLLC. You can just make those accounts into credit cards instead and essentially consider you and your business partners to be credit cards that need to be repaid. The accounts will be in a different category, but it'll still work just fine.

pccrich

I was just trying to do the same thing. It's strange that all account types don't work the same way. How do you record reconciliation of the accounts if you can't transfer funds between them?

Barsin

Hey there @Steve_MSLLC @pccrich

I just tried creating a liability account under the "due to your and other business owners" and was able to set it as my account type and then set my category as seen below.

Am I misunderstanding or is this what you're having trouble with?

pccrich

I think I understand the confusion now. It seems that the "due to you and other business owners doesn't work the same way as a credit card account.

With a DtYaOBO account, money taken out as a withdrawal is money that is owed back to the business by "you and other business owners." Money paid into the business as deposits is owed back to "you and other business owners."

With a credit card account, withdrawals count as a dept to be paid at a later date, hence you transfer funds from your main account to the credit card account once you make an actual payment towards the debt. Even though the debt is subtracted from the total amount of your account balance, the cash doesn't actually come out of your bank accounts until you make the payments and set them up as transfers to the credit card account.

The one thing I don't understand is why the DtYaOBO accounts aren't calculated in your total account balance and aren't accessible from the drop down menu at the top of the transactions page. They seem to be totally separate from everything else.