Accounting Newbie - need advice to get me started.

dvdlockdvdlock Member Posts: 3

Hi,
I am setting up a business which requires me to put some initial investment in.
I have two questions which will help me get going by way of example.
1. I have purchased a car in the company name which is to be used in the business. How do I enter this into wave accounts. How about the depreciation?
2. I have banked £1,000 into my business account to pay for some business related services and supplies. How should this be entered into Wave?

Appreciate any advice.

edited January 19, 2019 in Accounting

Comments

  • JamieDJamieD Administrator Posts: 993 admin

    Hey @dvdlock.

    1) It sounds like you will need to create a fixed asset in Wave that will depreciate in value over time. In terms of the fixed asset -- you will need to make sure that you create an expense transaction in Wave an categorize this as the specific asset account that you've created (In the Chart of Accounts section). As for the depreciation of that particular fixed asset; https://support.waveapps.com/hc/en-us/articles/208623506-How-do-I-handle-depreciation-and-amortization-

    2) You would want to categorize this total amount as Owner's Equity -- since it's technically you investing funds into the business for future expenses etc.

  • dvdlockdvdlock Member Posts: 3

    Thank you for the advice Jamie.
    For the invoice for this purchase I had scanned it to receipts. I assume I didn't need to do this as there is no way it seems to allocate it to the fixed asset account. Should I delete this Receipt?

    Edit:
    I think I misunderstood. I guess the Receipts is for expenses and not to use for recording invoices.

    edited January 30, 2019
  • SophiaSophia Administrator Posts: 147 admin

    Hi @dvdlock sorry for the late reply, we're having a busy month and I really appreciate your patience :) it sounds like you figured this out, but let me know if we can help with anything further. You are correct that the Receipts feature is for tracking your expenses. For the fixed asset, you can manually create the initial expense transaction and then follow the depreciation steps in the article Jamie posted above to record the depreciation on a regular (say, monthly) basis.

  • dvdlockdvdlock Member Posts: 3

    Hi Sophia
    Thanks for the reply. I have mostly figured stuff out through trial and error and reading up where I can. There is some good information on these forums, its general accounting advice that Newbies need that helps them to understand what account different types of expenditure should be allocated to etc.

    Thanks again.

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