Delima w/ credit card payments

BuenoBoxBuenoBox Member Posts: 2

Im not sure what to do in this situation. I purposely did not add my credit card to my wave account because I wanted to add reciepts and didnt want to worry about duplication. I dont want to have to go through hundreds of reciepts and pair them with the credit card transactions. Too time consuming. When I go to pay my credit card wave counts that as an expense. I like to have that documented but I dont want it to again duplicate my reciepts stored. I wish there was a way to not count that transaction. I have considered just deleting the transaction. Is there a better way to handle this?

Im also not really sure how to pay myself. Last year was a mess and I really didnt utilize Wave properly. My payments to myself came out looking like expenses. Im an LLC so its not like Im paying a separate entity. I dont know how to differentiate paying contract workers vs paying myself. Any better way I should be doing that?

Comments

  • MikegMikeg Member Posts: 256 ✭✭

    BuenoBox,
    Here is a suggestion.
    For my clients that use invoicing and receipts I set up a second business with the full company name. So we have company that is used for cash basis accounting (bank connected) and one that is used for invoicing and receipts (owner initiated transactions). You can do all the invoicing and documentation management without having to match items all the time nor have it affect the cash basis books.
    As a single member LLC you cannot pay yourself a salary. Payments to the owner are considered draws. If you want to track "paying yourself" that is where is should be classified.
    Hope that helps
    Mike G, CPA
    www.mgfinancial.net

  • BuenoBoxBuenoBox Member Posts: 2

    Thats actually a great idea. I never considered having a separate business for tracking that stuff. Now the big question is can I easily get my reciepts from this business over to the other LOL.

  • MikegMikeg Member Posts: 256 ✭✭

    BuenoBox,
    If you have a lot receipts and invoices already in one profile, I would opt to create the second one as the cash basis (tax books). It would easier to just connect the bank and credit card and have it import the data range you need.
    Best of luck
    Mike G, CPA
    www.mgfinancial.net

  • SpikesBitesSpikesBites Member Posts: 3

    @Mikeg - thanks for the information!! Can I clarify...the 2nd (cash basis) would just be run through bank transactions (so in our case a checking and a credit card) without logging 'details' i.e. invoices and expenses. In other words a high level aggregate of debits and credits that you use for tax reporting? The original account would be where I can see how much we spent on specific categories, customers, sales, etc. for understanding the business. Do I have this right? - Sherilyn

  • MikegMikeg Member Posts: 256 ✭✭

    Sherilyn,
    The second profile would be attached to your banking and credit cards. The information that transfers from them (i.e. descriptions) would show up as to the detail in the transactions page under Accounting. Hope that make sense.
    Mike G, CPA
    www.mgfinancial.net

  • SpikesBitesSpikesBites Member Posts: 3

    Thank you!

Sign In or Register to comment.