Transition from Sole Prop to S-Corp

HeftyHolyCarpHeftyHolyCarp Member Posts: 1

Hi all!

I've been using WaveApps since I was a part time Sole Prop, and switched to S-Corp. As an S-Corp, I need to reset a bunch of the accounts from the last few years, I am past the point of 'creating a new account' as my 'Scorp' launched in 2018, and the sole prop ended in 12/31/2017. Now that I'm working on wrapping up the books, I need to get all of the old invoices parked in a Sole prop company in order to archive them, I can move transactions between companies, but I can't move invoices :disappointed:

Any thoughts, I can't just delete the old invoices, those are needed in case I'm ever audited. Accountant is helping, but isn't familiar with Wave Apps as much as I am, so I'm following advice so I can get my inflated 'sales' line down to where it should be

Cheers
Carl

Comments

  • MikegMikeg Member Posts: 383 ✭✭✭

    Carl,
    I guess I'm not sure there is a need to create a "new" company because you are changing business types. Since you would contributing everything to the S Corp your Owners Equity less par value of stock issued would be additional paid in capital. The only item that you would add to your chart of accounts is common stock at par, if you indeed incorporated. Some take a single member LLC and convert to an S but are not Inc. In 2018 if you made a profit, then adding the AAA and APIC would get you your retained earnings in WAVE. Or you could do a journal entry to move your prior profit into a new account in the equity section called Additional Paid in Capital less par value. That would tie your balances from the S Corp balance sheet back to Wave. APIC - Common Stock - and retained earnings (AAA)
    Mike G, CPA
    www.mgfinancial.net
    Better Service - Better Pricing

    edited February 2, 2019
  • MitchellGillespieMitchellGillespie Administrator Posts: 17 admin

    Hi @HeftyHolyCarp,

    Thanks for your question. You are taking the right step by engaging with your Accountant to assist with the movement from Sole Prop to S-Corp.

    Unfortunately the ability to move that data within the web application is not available. That being said, I have some good news for you! As you work with your accountant you can utilize a new Beta integration we've launched: Wave Connect via Google Sheets. Using Google Sheets we let you push data into Wave and pull report data out of Wave for more of your forecasting needs. You should be able to move Customers, Products, Invoices, and other data into WaveApps.

    Find more about this new Beta functionality here: https://support.waveapps.com/hc/en-us/articles/360020768272

    Let us know if you have any other questions, and thanks for reaching out.

Sign In or Register to comment.