A starting balance is the amount of funds of an account at the beginning of a new fiscal period.
When you're entering a bank or credit card account in Wave, you probably don't want to enter or import every single transaction from the entire history of that account.
To keep your balances and accounting records accurate, though, you'll need to enter the starting balance for those accounts on January 1 (or whatever date your business's fiscal year starts).
How to enter a starting balance for bank and credit card accounts
- Go to your Transactions page and create a new transaction (Income/Deposit for Bank account, Expense/Withdrawal for Credit Card account).
- In the Date column, put in the starting balance date.
- In the Description column, enter "Starting balance".
- In the Amount column, enter the starting balance amount.
- In the Category column, select "Owner's Equity" (or an appropriate Equity account for your business).
- In the Account column, select the account for which you're setting a starting balance.
When you connect your bank or credit card, Wave enters the starting balance for you so you don't have to.
If you enter transactions with dates prior to this starting balance transactions, then make sure you adjust the date and amount of this transaction so that it is the first transaction of the account.
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