We’ve simplified how you handle personal transactions in Wave. Instead of moving transactions out of your business account and into personal, you can now categorize personal transactions right from your business transactions page.
To categorize a transaction as personal:
- Navigate to Accounting > Transactions and locate the transaction you want to indicate as personal.
- In the transaction detail view, select Deposit from Personal for income transactions or Personal Expense or Withdrawal for expense transactions from the category drop-down.
- Select the relevant equity account.
- Click Save.
You can categorize a personal transaction to any account listed under Business Owner Contribution and Drawings, like Owner's Investment/Drawings. You can see what Business Owner Contribution accounts you have and add new accounts under Accounting > Chart of Accounts > Equity.
Why categorize to owner investment/drawings?
Owner Investment/Drawing is a category used to keep track of the money you pay into and take out of your business.
When you pay for a personal expense from business funds, you'll bookkeep those transactions to owner investment/drawing to indicate that you took money from your business. When you invest personal funds into your business, the category allows you to keep track of how much your business owes you.
After you categorize a transaction as personal, you’ll still be able to see personal transactions on your business transaction page, and your business records will be accurate. Marking a transaction as personal won't create a transaction in your personal Wave account.
You can now mark transactions as personal in bulk! Select all relevant transactions using the checkboxes. Click Edit > Change Category, and choose the applicable Equity account. Then click Apply.