Billing Myself - Wave / Accounting Best Practices

JaysonWonderJaysonWonder Member Posts: 15

Hello,

I have a small company which deals with property rentals etc. The company is renting office space in one of their own properties. The company needs to essentially bill itself for $250 per month and then pay that same about. The paper trail is important so I am looking suggestions on the best method of accomplishing this.

I currently create an invoice and bill myself. When I pay the invoice I have been using Owner's Equity as the payment account. This works in the sense that the number balance but there is no real paper trail. I want to be able to pay this bill and specify that the money paid out by the company to the company was specifically for category Rent Expense. At present the transactions show payment for invoice #9 etc.... Not sufficient for what I need.

I see no way of doing this at the moment other than multiple journal entries... Anyone have any other ideas...?
Thanks,

edited February 18, 2019 in Accounting Technical Support

Comments

  • JamieDJamieD Administrator Posts: 1,145 admin

    Hey @JaysonWonder. After giving some thought and review to your post -- I feel as though I might have been overcomplicating things with the answer I was going to give you initially. With that being said, I think your best bet here is to actually just create transactions for the rental income transactions as well as rental expense transactions. That would be the best way of tracking this in Wave .. technically you could create an invoice/bill for these transactions for the paper trail if you would like as well. My follow up question though, are you using your Owner's Equity account to pay for the rental? (these should be categorized as operating expenses as well). The reason I ask is that you should be using the payment account that you use in the real world, not just want is assumed to be used in Wave.

  • JaysonWonderJaysonWonder Member Posts: 15

    Hi,

    I ended up creating an invoice and I specified rental income account and billed myself. I paid the invoice using owners investment / drawings as the money can in from another no connected account otherwise I would have just did a transfer with a description. I think this is working. I hope my logic is correct.

    Thank for replying. Any other thoughts are appreciated.

    edited February 20, 2019
Sign In or Register to comment.