Government Grant

Kadthulas2004Kadthulas2004 Member Posts: 3

Hi,
I'm just wondering how to enter a Start up Government Grant into my wave accounts, which Category. Is it a "Capital Interest" or anything else?

I also need to know where and how to enter Personal Investment into my wave account? Which category does it go in?

Comments

  • SamdSamd Administrator Posts: 560 admin

    Hey @Kadthulas2004 - I think this will depend on on whether or not the grant would represent taxable income, and I'd recommend verifying with a tax professional just in case, to make sure it is declared and tracked properly.

    Assuming the grant represents an inflow of funds to support your business, and that the funds do not need to be repayed (or forfeited after a period if not all used up), I would recommend categorizing the inflow via an Equity account. You could use Wave pre-sets, or create one directly in Accounting > Chart of Accounts to specify this exact grant. You can also add a note to the transaction indicating it is a government grant.

    You'd want to do the same thing for your own personal investment as well. You'd need to create an income transaction for the investment and run it through an equity account, but in this case you'd want to choose Owner Investment/Drawings.

  • SergioSergio Member Posts: 4

    Hello @Samd. What about the Canada/Quebec child benefit? How would you categorize it? Thanks!

  • JamieDJamieD Administrator Posts: 1,117 admin

    Hey @Sergio. In this situation, I would definitely seek the advice of an accountant on how to properly categorize this, however, you could technically create a category that would be labelled as child benefit in the Chart of Accounts section and categorize the transactions as those.

  • SergioSergio Member Posts: 4

    Hello, @JamieD. Thank you!

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