Non-operating Expenses And Recurring Expenses

NiranjanDNiranjanD Member Posts: 11
This is really a very important thing. All business have certain expenses that cannot be categorised as operating expenses. These expenses are shown in profit and loss statement after/below the Operating Profit.

Every business has these kind of expenses. Example include Interest on Loan, gain/loss on any investment activities, Income Tax.

Another feature I think is necessary is Recurring Expenses. Expenses such as rent, utilities bill, credit card bill, are incurred every month, and it would great if we could have this feature. Showing this on Dashboard as upcoming expenses will have business owner manage their liabilities better

Comments

  • SandyLSandyL Member Posts: 33 ✭✭

    The ability to record corporate income tax payments as a non-operating expense is a basic accounting function, so should be featured in Wave software. Not having this feature means the P&L is inaccurate and the only real way to resolve this is to create a 2nd P&L, apart from Wave reports, to submit to government/banks/investors.

  • JigarJigar Member Posts: 8

    I echo @NiranjanD and @SandyL here. This is a very useful feature and a very common practice. Hope to see the feature very soon.

  • BarsinBarsin Administrator Posts: 2,041 admin

    Thanks for your feature ideas folks! Wish I had updates for you but unfortunately I do not at this time. We still love to hear from our community members as to what you'd like to see from Wave.

  • phikphik Member Posts: 8

    So just for the avoidance of doubt:

    After reading this and several other threads -- filled with bewildered people like myself, who cannot figure out how to properly categorise something as universal as income tax -- what I'm hearing is that it's not possible to simultaneously have an accurate balance sheet and an accurate P&L, in the face of a non-operating expense like an income tax payment?

    Is that correct? Please tell me that I'm wrong and this is just a big misunderstanding.

    Thanks,

    -Phil

  • NiranjanDNiranjanD Member Posts: 11
    @phik yes, you are correct. However, the only error would be in the presentation of Income Tax in the P&L statement as Operating Expense. The net profit figure should be accurate.

    There is no reason for Balance Sheet to be inaccurate. Regardless of how you record Income Tax (as liability, provision or as actual expenses), there is no reason for Balance Sheet to be incorrect if your entries are done properly.

    I dont understand how could the developers missed something as universal as Income Tax/Non-operating Expenses in the platform. I hope they add this feature soon.
  • IanpascalIanpascal Member Posts: 1

    I have also discovered this functionality is missing from Wave, which is very disappointing. The VAT functionality is good and links the P&L and the balance sheet properly. I don't understand why a similar facility doesn't exist to add corporation tax simply at year end, rather than muck around with journal entries. I know Wave is not from the UK, but I think there are a lot of UK customers who would benefit.
    I also would love to have the ability to set regular payments, of which I have several. I would happily pay an annual fee to have these types of functionality.

  • SandyLSandyL Member Posts: 33 ✭✭

    The Wave is Canadian based and this is definitely a Canadian requirement - an important one that they somehow missed. Perhaps with the H&R Block acquisition they'll get this fixed.

  • SaaviInvestmentsSaaviInvestments Member Posts: 1

    I use this software to manage my real estate LLCs. I cannot figure out how to record non-operating capital expenses like a new HVAC or water heater etc. These dont show up in your income statement either. They should be showing up in the cash flow statement.

    Is this software not for real estate transactions? Please advice.

  • SandyLSandyL Member Posts: 33 ✭✭

    I've set up a capital expense (for a computer hardware purchase) but I'm not sure if this is what you're after. In Canada, you can claim a capital expense as an operational expense, if you amortize it according to CRA percentages and timelines - here it's called a Capital Cost Allowance. If you don't want to claim the capital expense (or can't where you live), then I don't think there's a way to capture the expense non-operationally on your Profit/Loss using Wave software.

    First, I created a Chart of Accounts under 'Assets: Depreciation and Amortization' that I named 'Computer Hardware'. Then I withdrew the amortized expense for the year from Operating Expenses - Depreciation Expense and "withdrew" the remaining amount from the 'Computer Hardware' asset account - this debited the account with the remaining cost of the hardware for future transactions.

    Next year, I will do a Journal Transaction to move the allowed amortized amount from the Asset account to Operating Expenses. The Asset account (which is listed in my Balance Sheet) will reduce accordingly. I'll do this each year until I've expensed the entire amount.

    I'm not an accountant, so if you want further clarification, you might want to ask Barsin (see a few posts up) who works for Wave.

    Good luck!

  • R_SR_S Member Posts: 1

    Still waiting for the non-operating expense to become available. Thanks.

  • NancyCNancyC Member Posts: 148 admin

    Thanks everyone who has continued to express interest in this feature idea. While I don't have an update to provide, we really appreciate all of the feedback that has been shared in this thread!

    edited February 17, 2021
  • joshperrinjoshperrin Member Posts: 2

    Just wanted to add my voice to this need. Need a way to book corporate tax expense and payments without throwing off the P&L.

  • blankrealityblankreality Member Posts: 4

    I would like to chime in as well. This is a desperately needed feature. It is critical to all of us who pay any form of income tax... e.g. the entire population of the USA. Thanks to SandyL and other for helping devise work-arounds, but this really should be native functionality. I wish the dev's would realize this!

  • dblapxdblapx Member Posts: 4

    An essential feature! +1

  • jasjitchoprajasjitchopra Member Posts: 1

    Can we please get this implemented ! Been more than a year users are asking fro this?

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