How to manage transactions in Wave


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How to manage transactions in Wave

Video Transcript

Speakers in this video: Jimmy (GetApp) and Brooke (Wave)

Brooke: I'm just going to start with showing you all the different features on the Transactions. When you click on a transaction, you have the ability to show details. At this point in time, you can actually edit the description.

Jimmy: Okay.

Brooke: You can also categorize the transaction. So this is really where the magic happens in Wave. Basically you're going to be choosing a category and these are all based on your chart of accounts which is on your accounting page. Essentially, you're just going to be picking your expense accounts. So I'm going to say that at Home Depot I bought some office supplies. Now, what's happening on the back end when I categorize a transaction, the real double entry accounting and the proper journalized transaction is happening. It's actually going to be reflected in my reports. I'm going to get some pretty robust reports just by categorizing all my transactions and this is really going to help at the end of the year especially when you need to get your taxes on and hand over all your data to your accounting professional.

Jimmy: Oh, this is great!

Brooke: Yeah! Again, you can choose to add a vendor to the transaction. You can add a sales tax which are totally customizable and set up by you under this small gear icon.

Jimmy: Okay.

Brooke: At the very bottom, you will see where that transaction came from. So if by chance a receipt was attached to this transaction, you would have the ability to click on that attachments and have that receipt for your records.

Jimmy: Okay.

Brooke: Such an important piece there. Now, with the different things you can actually do to this transaction, this is one of the biggest benefits with using Wave. You can actually split your business and personal transactions. I'm going to show you exactly how to do this and this is a great solution for anyone that mixes their business and personal finances. So that would give one with one bank account or one credit card and they're starting up a business and they are using it for personal and business.

Jimmy: Which I imagine is the case for a lot of people.

Brooke: Exactly! It's very common especially among entrepreneurs.

Jimmy: Okay.

Brooke: To split this transaction, all you have to do is click split and you can split into as many different parts as you would like. I'm actually just going to split it into two parts for today. And what will happen when you click on split transaction is you'll actually see it move into two different pieces.

Jimmy: Right.

Brooke: Now, I do want to finalize a last step which is to move this portion into personal. To do that, I'm going to click on the drop down arrow again and I'm going to select move to personal. Now, this is where I can then type in a personal account like groceries and I'm going to move that transaction over to my personal side.

One thing I should have probably mentioned at the very beginning is on this business drop down list, every Wave account has a personal side attached to it and that's to make this solution for personal and business splitting to work. You also have some great investment tools and reports on that side as well. If you ever need to get back over to your personal transactions, you can do that here. But for now, it's taken cared of and it's actually pulled out of your business as an owner's draw or acuity account.