Tax savings transfer categorization.

valeriemvaleriem Member Posts: 2

How have you categorized a transaction that is going into a tax savings account? None of the account type categorization options seem fitting.

Comments

  • MikegMikeg Member Posts: 527 ✭✭✭

    valeriem,
    Do you mean setting aside cash for taxes? if you have a separate account, then you would set up an additional cash account and call it Tax Savings.

  • valeriemvaleriem Member Posts: 2

    @Mikeg - Thanks for the response. It's not cash, it is money transferred internally from a checking account to a savings account. I tried making a 'new account' in wave, but it won't let me make a new 'account type' (see below) and none of the preselections seem to fit. What was your process for making a separate account?

  • MikegMikeg Member Posts: 527 ✭✭✭

    valeriem,
    Go to Accounting/Chart of Accounts. Under Cash and Bank add account. Tax Savings. I'm a little confused with "it's not cash" but you mention savings account. They are usually one and the same, just a different type of account. I guess you could set up an account under short term assets but if you do regular transfers between them, you may want to leave under the cash section. I do not believe the transfer feature in Wave would work with a short term asset.
    I have a client that does the same thing i.e. segregating funds for taxes. We just have a separate account called Tax Savings under Cash and Bank.
    Let me know if you have any other questions
    Mike G, CPA
    www.mgfinancial.net

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