We’ve made some changes to how your accounting data is represented in Wave to help you get a clearer picture of what’s happening within your business. What’s new? Let’s break it down.
Transfer clearing account
Your transfer clearing account is an equity account that holds funds temporarily, until they are moved into another account that you own.
This is especially helpful when you’re running reports. What happens if you run a report, or want to perform bank reconciliation for a date that falls between the dates of the transfer? For example, if you paid your credit card on February 28th but the payment wasn’t recorded until March 3rd, you’ll see a those funds as a debit in your transfer clearing account.
Money in transit account
Your money in transit account is another holding account that’s automatically created for you when you accept your first online payment in Wave.
This holding account is an asset account where your funds are held until they are deposited into the appropriate bank account. The holding account shows what’s really happening: the payment hasn’t hit your bank account yet, but it’s on its way.
Sales tax account
Previously, Wave reported your taxes in two accounts: Tax Receivables (assets) and Tax Payables (liabilities). Now, a tax account in Wave is a liability account which represents the net balance of the taxes you have paid or received. The difference between the two appears as the net balance of that account. If you pay and/or receive more than one type of sales tax, you will need an account for each type of tax.
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