Best Practice: Monthly Recurring Loan Payments
This is more of a best practice guidance question as opposed to a potential technical limitation (although, there is one point regarding technical limitations).
I have various liability accounts that represent loans that have a known and recurring monthly payment. These need to be recorded as a transfer transaction within the main accounting panel whereby a transfer of funds from a cash asset (bank account) to the liability (loan) occurs.
- I would like to better know exactly how many uncommitted funds are in the bank account at any given point.
Best Practice Guidance
At present, I have an external spreadsheet that lists all recurring loan payments with the associated amount and day of the month. I will then set reminders in my calendar a few days prior to go and manually create transactions in Wave for each of these "transfers." However, this is time-consuming, and it doesn't give great insight into actual available funds.
I have thought above the below, but I'm not so sure this is the best approach;
- At the beginning of each month, preemptively create ALL of the loan payment transactions in Wave on the associated date in the future (just for that month).
- This will make the balance shown in the header of the accounting panel represent the uncommitted funds for this period, although, not accurate for the exact point-in-time, as the transactions are future dated (however, for my case, that might not be an issue).
Is there a better method of doing this? I know this is obvious or trivial -- but when you have multiple liabilities with significant outflow, it would be nice to have insight at a glance.
It appears there isn't any way to create an automatically recurring bill or repeating transaction, such as the case of this loan payment.