Do it Yourself Bookkeeping

a) The first step is to go to go to https://www.waveapps.com/ and click get started.
b) Next you will input your email address and password

After inputting your email and password you will now fill out basic information for the company which you would like to create a Wave account for. Some of the items you should have handy include:

• company name
• business type
• organizational type
• country
• number of employees and
• currency

Once you have created your account your next task will be to connect your bank account. This can be done through 2 methods.

1.) Connecting your bank account to wave
2.) Upload a bank statement

• To do either method you must first go to the transactions tab which is located on the left of your screen on the tab bar.
• You will then see two tabs coloured blue. They should read “add bank account” or “Upload a bank statement”.

• If you choose to connect your own bank account Wave will automatically download your nak transactions onto your chart of accounts.
• For Canadians Connecting your bank account works for every Bank except CIBC.(If with CIBC must uses method 2)
• Once you have chosen your bank you must enter your online banking information.(username and password)
• If you do not have an online banking account you should inquiry to your bank as to how to create one.
• After you enter your online banking information you can submit. Note it will take about 5 minutes to update your banking information onto your Wave accounting file.

• After clicking the tab you will be directed to a screen that asks you to upload your bank statement.
• This can be done by going into your online banking account and saving your monthly bank statement in any of the formats listed.
• After uploading the statement Wave will take about 5-10 minutes to categorize the information.
• You can choose to upload any time but I would recommend monthly so you can keep up to date with expenses.

• After you finish uploading your bank statements your transactions will appear.
• If your dollar amount is green then it is income
• If they are red it is an expense
• Wave will automatically try and categories your expenses to the related account it has set up for you.
• However it is important that you review its work so that no errors are made.
• You can choose which account best matches your transaction or create an account if it is not listed.
• We will show you how to create your accounts later on in this tutorial.

The next step after categorizing your accounts is to set up your company’s chart of accounts.

• To do this you will click on the Accounting tab on your hub screen to the left.
• This will display all the accounts Wave has automatically generated for your company
• I would advise you to delete the accounts you do not need such as political contributions as shown in the video.
• If you would like to add accounts you simply click on the add accounts button found at the top right of the screen
• Here you can either sort by type of account (Expense, Revenue, Asset, etc) or enter the name of the account (Cash, Meals and Entertainment, etc).
• If your account is not listed or you would like to change the name of the account you can do so in the other section of each subcategory.
• For example if you want to name an account ABC office supplies you would go to expensesoffice (subcategory) other office expenses. Here it will allow you to edit and type in your desired name.
• This can be done for all accounts in each subsection.

Once you have finished categorizing your expense s and creating your chart of accounts you can view your financial statements through the Reports Tab on the left side of your screen. You will be able to access reports such as your Balance Sheet and Income Statement.

• The Balance sheet is a snap shot of your company’s financial position at any given point during the year.
• First you must select a date you would like to review. Balance sheets are typically the date of the company’s year end. You can review it however for any day you wish.
• Once you input the date you would like to view you will be able to see what assets liabilities, and Equity your company possesses.
• Another feature of Wave Accounting is the ability to export your balance sheet onto other platforms such as Microsoft excel or a PDF file. Theses can also be viewed on multiple mobile devices if you have the appropriate PDF reader.

• The Income statement will show what your revenues and expenses are for your business. It will tell you if your business made money this year?
• To view this we will click on the reports tab then click on view income Statement.
• Unlike the Balance sheet the Income statement is over a period of time. Typically a one year period will be selected starting the day after your year end.
• You will also be able to view your income statement through excel and a PDF.

Some other statements you can view through Wave Accounting are:

• General ledger
• Trial Balance
• Aged Receivables/payables
• Income by Customer
• Expense by customer

This video will cover HST payable and receivable for your customers and vendors as well as instructions on how to complete the HST Return using Wave Accounting.

• Through the Account Settings gear, completely fill out the names of the customers you do business with.
Setting up Sales Tax and Products/Services
• In Account Settings, input the applicable federal and/ or provincial Sales Tax (i.e. HST 13%)
• Click the relevant boxes, including “Is this tax recoverable?” and fill out the fields
• On the Products page, add any Products or Services that you sell
Creating Invoice
• Enter the necessary fields on your invoice including Customer Name, Due Date, and Price. If you wish, send a completed invoice to your Customer
• GST / HST field should automatically appear on customer invoice
Creating Bill
• Enter the fields for paying a Vendor including Vendor Name, Due Date, Item, Expense Account, and Price
• Don’t forget to add the HST paid or payable manually on the Bill
Sales Tax Report
• Review this report to prepare your HST return
• The total of HST received or receivable on customer invoices will appear in the payable column. This amount should be recorded on line 103 of the HST return
• The total of HST paid or payable on vendor bills will appear in the receivable column. This amount should be recorded on line 106 of the HST return
• The net tax (difference between lines 103 and line 106) should be recorded on line 109 of the HST return

Shareholder Loan are transactions where the business owner pays for the company’s expenses out of their own pocket. To record Shareholder Loans and the expenses, you can follow the steps below:

• Open Accounting, and Add an Account if the account is not already present
• Open Bills Tab, and click on Create a Bill
• Select Vendor, and add new vendor if the vendor is not already present, enter the name and description
• Fill in the bill information, under Expense Account, enter the expenses you want to record, and record the price, as well as tax if applicable
• Click on Save
• Once the company wants to pay back the Shareholder Loan, simply click on the down arrow beside the bill, and choose Add a Payment.

It is recommended that owners keep track of their expenses using Excel, so that all the items are accounted for.