Used my personal bank account all last year, trying to clear cash on hand account.

kmartinkmartin Member Posts: 9

Here is the situation. I operate as a sole proprietor. I started this as a test to see if it was actually viable. I only expected to do a couple thousand in revenue for the year as a part time gig for some extra cash and needed to keep track for tax purposes. However as the year went on I actually did pretty well and earned way more money than I thought I would. I'm now pursuing this as my main form of income instead of working two jobs. I operated my business out of my personal checking account for my entire first year. All transactions went in and out of my personal account. For this time, I operated completely from the cash on hand account in wave. All payments, taxes, fees etc went in and out of that account.

As of a week ago, i finally opened a second checking account to use strictly for business purposes. I took 500.00 to open the account and put that into wave as an Owners investment I ran a report for January 2019 and I took all of the money from cash on hand for the current year (2019) and transferred it into my business checking account. My current checking account balance matches exactly as wave says it should for 2019.

I am now faced with a cash on hand account with a balance for all of last year. This money has mostly been spent throughout the year and is no longer actually there. I was going to just add an owners draw on the remaining balance, date it December 31 2018, and notate it as cash spent 2018 , just to clear the cash on hand account, but was unsure if this was the correct way to go about clearing the account.

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