Having 2 Chart of accounts for 1 company

VLS_106VLS_106 Member Posts: 1

Hello,

I am new here and to Wave, I am in the process of setting up our Chart of Accounts but need to track 2 separate entities.

Here is the background, I am managing 2 Furnished Corporate rental suites, each suite is owned by a separate entity which I will need to have a separate PNL and Balance Sheet for. What would be the best way to manage this?

Thank you and sorry for the newbie type question.

Comments

  • AlexLAlexL Administrator Posts: 559 admin

    Hey @VLS_106 . Super excited to welcome you to both Wave and the Community :) ! Also, never be sorry for asking a question here, that's what the Community is for!

    To start off, Wave does not currently offer project or property-based accounting. This means that you have two options when accounting for this.
    1. You can house everything within the same business, which will allow you to view all of your Reporting together.
    2. You can create a different business per rental property, allowing you to differentiate between your Reporting based on business. Subsequently, you won't be able to get a larger picture from Wave as to what your total balances are.

    I'd advise on #2 as you can always add up your numbers and figures to get the bigger picture, whereas breaking them down individually can be much more difficult.

  • JAMJAM Member Posts: 3

    Sub accounts are really needed in wave to facilitate the ability to do this as it's not limited to project or property based accounting, it affects basics such as Expenses where everyone has an incidental then other item tipes (rent, telco etc) which is not project or property based accounting but suddenly would cover those as well.

  • JamieDJamieD Administrator Posts: 1,091 admin

    Appreciate the additional feedback that you've provided us here ^ @jam -- This could be something that we implement in the future, but as of right now, there isn't any word of it being on a roadmap currently.

  • KimptonKimpton Member Posts: 34

    VLS 106
    For 2 entities just double up the income and expense accounts by naming one Suite1 and the other, Suite2. You are not going to have that many doubled up accounts.
    Most expenses will be for the 'business' so for reporting purposes you will just use half for each suite.
    Pretty much every report you're going to use will require Excel to prepare and reconcile anyways. Don't sweat the small stuff.

  • devnuldevnul Member Posts: 3

    I agree with the original poster (@VLS_106) here - this is a really really important feature. I just signed up for an account but the lack of this feature makes it very difficult to use for our use-cases.

    Here's the problem:

    1. Link a bank account - all the transactions download (this is great, although I have as yet to see how smart the categorization is going to be - TBD on that).
    2. Note that within this single bank account are payments coming in from 8 different rental properties and expenses going out for those same 8 properties.

    There is no way to run any kind of reporting for any one of the individual properties. Creating a separate business doesn't work because the bank account can (as far as I can tell) only be associated to a single business. Moreover, even if it could be duplicated somehow there would be all these extra transactions that would have to continually be disregarded.

    This seems to have an additional nuance because of how categorization is automated in Wave. In my case, I'd never want an account to be categorized without first selecting one of those properties to associate it to. In other words: EVERY accepted transaction MUST be associated to a property and this would need to be adjusted for the rules. There's almost always something in the memo line that would indicate, at least for the majority of the transactions, which property it should be associated to - and thus a great candidate for automating that tagging.

    Its a really critical feature, at least for folks like the original poster and I who are trying to account for multiple properties. Opening up a checking account for each property within a self-contained business would be a very taxing way to contend with this.

    Regards,

    Greg Saylor

    edited September 4, 2019
  • EmmaPEmmaP Administrator Posts: 57 admin

    Hi Greg, @devnul! Thanks for reaching out! Eight different properties is a lot to keep track of! You can use either of the methods described in the thread above, but there will be a lot of extra work in doing this. As @AlexL mentioned, Wave has not been built out for property-based accounting, which means workarounds do have to be used. To get the correct transactions into your Wave account, you could download your statements from your bank as CSV files and then split the transactions for the 8 businesses into separate files to upload into each business. This is time consuming work, so I do see your need for a function to be built out!

  • devnuldevnul Member Posts: 3
    (@EmmaP) (@AlexL) actually it’s a lot more then 8. I think I’ve got 28 now, with another 6 under renovation. That’s the reason automation and rules are so critical - to both remove human error and reduce the overhead of accounting for things that are basically repeated over and over.
    edited September 9, 2019
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