Wave Accounting Software for Small Business - Course 1 - Intro, Users, Banking, Backup | Larry Aiello | Skillshare

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Wave Accounting Software for Small Business - Course 1 - Intro, Users, Banking, Backup

teacher avatar Larry Aiello

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

7 Lessons (30m)
    • 1. Wave Promotional Video Class 1

    • 2. Introduction - What is Wave and What Businesses does it work the Best?

    • 3. Setting up a New Business in Wave

    • 4. Upload Banking Activity to Wave Accounting

    • 5. Adding Users Collaborators to Wave

    • 6. Backing up your data from Wave Accounting

    • 7. Wrap up for Course 1

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About This Class

A small business needs to have a good accounting software program to help keep track of its finances and to help make decisions.  Otherwise you are setting yourself up for failure if you don't have useful and accurate business information.  This course will go over an accounting software program that can help you organize and take control of your finances.

Wave Accounting is a software package designed for the small business that is FREE to use and is cloud-based.

In this course we will look at the features and functions of Wave Accounting Software and how it can help your business.

This course, the FIRST course of a FOUR PART Series and will go over:

  • What is Wave and what business does it suit best?
  • Setting up a new business
  • Connecting to your banking activity and importing data
  • Inviting other users or guest collaborators
  • Backing up your data

Designed for the Entrepreneur or Small Business Owner

I have designed this course so that you can learn how to handle your own bookkeeping function if that is your desire and you want to save money on hiring an accountant.

About the Instructor

I am not affiliated with the software.  I am an accounting professional with over 30 years of accounting experience and I can teach you how to use the software.  I have been using the software since 2015 and discovered it when I wanted to research for a client a more affordable solution than QuickBooks.


So join the course today and learn more about this powerful financial accounting software!

Meet Your Teacher

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Larry Aiello


Hello, my name is Larry Aiello and I am an accounting professional with 30 years accounting experience and a graduate of the University of Florida.

My experience covers a wide variety of industries including real estate, healthcare, financial services and doing a lot of different tasks related to the business world. And I’m also a big geek in figuring out how the computer can improve our lives.

I really enjoy teaching and sharing my knowledge with others no matter what the subject matter.

I grew up speaking Italian at home and developed a love for the Italian language at a very young age as we would travel back-and-forth every year to visit my family and friends. Early on I realized that knowing another language is indeed a gift. It allows you to have relation... See full profile

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1. Wave Promotional Video Class 1: Hi. Are you a small business owner that has overwhelmed by keeping your accounting records straight and looking for a program or system to help you without breaking the bank, then I might have the perfect solution for you. My course will go over a program called wave accounting, wave apps.com, which is a cloud-based solution that is perfect for many small businesses. And the best part is that it is free. With the program you can bill your customers, receive payment by credit card for a small fee like PayPal. Organize your finances and assess how your business is doing financially. All the standard accounting reports that you or your tax person needs is part of the program. So this will be the first class out of a four part series. And in this class we will look at when to use Wave accounting. There are some businesses that are better suited for wave than others. We will look at setting up a new business. We will look at importing banking activities. We will invite other users, and we will look at backing up your data. So thanks for stopping. By my name is Larry ILO and I have over 30 years of accounting experience. And I can help teach you this program in about two hours of class instruction. So what are you waiting for? Get started today so you can get a better handle of your business finances. And I will see you inside the course. 2. Introduction - What is Wave and What Businesses does it work the Best?: Hello and welcome to the course. This is Larry Aiello, and in this lesson I will go over why I like using wave some of the benefits of the program , and I'll go over certain business characteristics when it makes sense to use the program or not to use the program, I often get asked what accounting software is best, be it wave or QuickBooks or something else. And the answer is, it depends on the type of business you are running in your particular situation. The obvious nice thing about the software compared to other software is that it is free to use now. They used to run advertisements along the side bar of the software, but that went away a number of years ago. Now Wave makes its money if you utilize their payroll service, which I will not go over in this class, and they also make money if you accept credit cards for payment through their platform in which they will charge a fee similar to pay power or feed by having a merchant account wave is designed best for solo entrepreneurs or for small businesses with a handful of owners or partners, it is cloud base, where the data is stored on a computer server that is accessible with an Internet connection. So if you are on the move traveling etcetera, it allows you to access your company's financial records. So long as you have an Internet connection, you can add an accountant or a bookkeeper as a user, so you can outsource this task. While you are still having access to the reporting, you could see how your business is performing and because you can access it in the cloud. You can easily share this information if you wanted to. With business partners, investors, potential investors, bankers, etcetera and many banks will allow you to access their data feeds for from your individual bank account where you do business so that data comes in automatically into the wave software system. All you then need to do is categorize the transactions and then review them, and then your books and reporting is accurate. If you are concerned about security and don't want wave to access your banking activity directly, you are able to bring in the data manually, and I'll show you how to do that in the future lesson. Another thing I like about wave is the third party integrations they have. There are also some maps and integrations that you can also use in conjunction with Wave to make wave even more powerful, especially with the e commerce, email, marketing, CRM management and scheduling. So now let's take a look at the situations where wave would fall short and when it makes sense not to use wave and to pick another option, like QuickBooks desktop QuickBooks online or even something else. Wave is not a good solution for you if you run multiple locations and need to evaluate their performance. For example, if you're a real estate broker and you have some associates in the north office and some in the South office, then you are probably better off with QuickBooks online, where you can evaluate by job or by classifications etcetera. You can tweak wave to report on different location, but it would be a grind, and it would get ugly if you had 5 10 locations etcetera. QuickBooks online is a much better solution for that scenario. Wave also fall short. If you are selling physical items and need an inventory solution and figuring your cost of goods sold, you're on Amazon F B A or have an eBay store or Etsy store and can get by with their inventory reporting than wait can work for you. You or your accountant more than likely will still need to make a journal entry at the end of the month to get your inventory accurate on wave. It is really best for service based businesses like lawyers, account dance, graphic designers, real estate agents, etcetera. If you are running a company that is payables intensive and need to cut many checks, one way will not work for you. Many companies, for example, use. For example, QuickBooks desktop will enter in all their accounts, payable items, run a report to see what is due and payable, and then load up pre printed checks into a printer and generate the checks to be mailed. Wave does not have this feature. Not yet, anyway. Wave is good if you are hand writing a few cheques a month from your checkbook, or you have most of your bills on on an auto draft or bill pay type feature, so that will wrap it up for this lesson. If you have a peculiar business situation that I did not cover and want my opinion whether wave can work for you or not, then posted in the discussion board or send me a private message. Thanks for joining me today. 3. Setting up a New Business in Wave: Okay. Welcome back. This is Larry. I yellow. So in this lesson, I'm going to show you how to set up a new business on wave accounting software. In this particular case, it will be for a client of mine that is a speech therapist, A little bit of background, her business to set up as an LLC, a Limited Liability Corp She is the sole owner, but she also hire subcontractors to perform speech therapy services for her clients. I have been keeping her books on a desktop version of QuickBooks Pro 2013 which is no longer supported by QuickBooks. But the software can continue to run on my computer just as long as my computer keeps operating. So we've been keeping track of her business activity on QuickBooks. I compile a monthly profit and loss statement for her, which I emailed to her every month. I then create a copy of the QuickBooks backup file and put it on Dropbox so she can access the data as well. And at the end of the year, everything is nice and neat and ready for her tax preparer. After we just print off a few reports for him, he's ready to go. So I finally convinced her to switch over the wave accounting, which would work perfectly for her business. That way she can view how are businesses operating on a daily weekly or whenever she wants basis, she could just log in and view the dashboards, and the data will be automatically imported from her bank account. My job is to categorize the data into the proper buckets or accounts. Then she doesn't have to wait for me to send her the monthly profit and loss statement. The data will be in the cloud, um, waves servers, so we don't have to worry if I get hit by a bus or an asteroid, falls on my house and ruins my computer's hard drive, etcetera. We could have opted to use QuickBooks online service, but there would have been a monthly fee for that. So we're going to use ways since it is free and it will suffice for her business needs. So let's go through the menu options for this new business set up, so I'm locked in tow wave. Right now, I'm out the dashboard and I'm going to click up here, and I will create a new business. So her business is called speech connection. Well, see, And here in the drop down, the next option is the type of business. And here you have different options. Artists, photographers, consultant, professional, etcetera. Here where you make a product, here's a general description where I provide a service. But for her particular case, I'm going to pick this medical, dental and health. And there's another option right here. We will just put in other health doesn't have speech therapy. And here you pick the country that you are doing business in. You have many options. In this case, it will be the United States, and the currency will be US dollar. Of course, there are other currencies that would fit your needs if necessary, type of organization. We are going to put it as a corporation. So now I will save it. Uh, and there you see her business popped up in the businesses that are on my account here. So now I'm going to go to the dashboard, and I am going to organize her finances. I want her income and expenses to be pulled in from her bank count. And here you can upload a bank statement, which we're not going to do. We could add transactions, matchup manually, which we're not going to do. But I am going to connect to her bank account. So let's connect to a bank account right here and she is at now. It's gonna ask me what bank she Banks at P and C and a few different options pop up. I will pick that one here. It's gonna ask for her credentials where it will log in and pull in her bank information. This is right. You see, Now we have to verify with a capture, it's looking for buses. So I think that one that one, that one and that one, Okay, checking credentials and connecting to the account says this could take a few minutes. Okay, so now it's going toe asked me for some security questions, which I will tight been. Now it's going to ask us what to import. So this is a credit card account. I'm going to create a new account for it to import from import into, and I'm going to pick a specific date for her. So here we're in March 2019 but I want to start importing transactions from January 1st because I will be doing a journal entry as of 12 31 18 to pick up where quickbooks left off . So here is another. Here's another option for a credit card. I'm going to create another account and again, I'm gonna pick from a specific date on business checking. We will create a new account. We will also pick from February 1st and I will continue. And here are her transacted. That didn't take too long. So now I will go through and some awry and categorizes, I will set up her chart of accounts in another video will go through that I'm going to delete thes starting balances because I will pick him up via a journal entry. Otherwise, it's going to give me a warning here that Are you sure you want to delete these for transactions? Yes. Otherwise I will be double counting her cash and her equity get forever double counted and we don't want to do that. So that's how you set up a new business. Hope you enjoyed the lesson and will pick this up more continuing in the next video. Thanks 4. Upload Banking Activity to Wave Accounting: Okay. Welcome back. This Larry Yellow. So in this lesson, we will look at importing banking activity into your wave accounting software. So why would you want to do this? Well, first of all, wave accounting can't bring in transactions for up to 90 days old. So this is great if you're business just started out and you're within that 90 day time frame window. But if you need activity for more than 90 days old, you're going to have to either one upload banking transactions, which is what we will do in this lesson or two. Create a journal entry for ending balance, beginning balance amounts. So what I did for my speech therapy client what I did was I entered an ending. Balance is, as of December 31 2018 after her books were finalized. And then I was able to download the new activity in the month of March. Prior to the 90 day window expiring, I was able to download the march information and have all her records accurate and caught up. So the upload banking activity, all you want to do is go to accounting and then transactions. Then you want to go to more up in the top, right, and what you want to do is upload a bank statement. Now. It's not really a bank statement. It would be nice if you could just upload a PdF of your bank statement, and it would know that your deposits were your deposits and your other activity or money is coming out. But what they really mean is upload banking activity, and you can pick from a number of formats either Microsoft Money, QuickBooks, Quicken simply accounting or a C S V file, which is basically a Microsoft Excel spreadsheet saved in another format or saved in a format without a lot of formatting that any formatting really or formulas so depending on your bank or financial institution, will determine what type of format file format that you can download here. Most often, you'll see, see SV, Quicken and QuickBooks and a lot of times you'll see of Microsoft money. But many times your bank or financial institution will only be able to go back 90 days as well. So if you haven't been downloading their information, you'll need to get there. Pdf file their statements. If you need to go back that far get their pdf files and have a V A convert them into a C S V format for you, so you can then upload in tow way. So we are going to look at a C S V file. We're gonna import a CS file, and I will put that example in the resource is section of this class Here is waves resource that you can use Here is a three column upload format. Here, you need the date description and the amount and the date needs to be. Why, why, why, why and then d d format And the amount in this column needs to be in a specific format with no currency symbols. And here it would be a plus or positive number if year depositing money or neck a negative number if you are withdrawing money or being charged money. Here is a four column format and same thing with the date format description here. Just deposits will be positive and withdraws will be positive in this column here. So here is a sample file. I'm going to use a four column format, and this is the Excel file that I will change to A. C. S v file, but I will put this file The Excel file along with the C S V file in the resource is section two this class. So then what you want to do is just go to file, save as and save it as the C S V comma delimited format. And then what you want to do is select that fall. Right Here's here is that file and then picked the account that it pertains to. I'm going to just say it's the Bank of America account. Then I'm going to click this upload button and here it's asking you Hey, confirmed the date information. These were the six transactions I had on that. See, SV file going to confirm everything is okay there Going to confirm the deposit amounts that I had on that spreadsheet going to confirm the description. And then once that's done, I'm going to click here, upload the statement potential duplicate transactions. I'm not sure what probably looking at some of the dates. That should be okay. Go ahead and click. Yes, and import them. So now I'm going to select my Bank of America account. And here goes those transactions that we imported right here that all I need to do is select a category for them in here, and then the import will be complete. So thanks for joining me today. If you have any questions, please leave them in the discussion board and we will continue on in the next lesson. Thank you. 5. Adding Users Collaborators to Wave: good day and welcome back to another lesson in this lesson. We will go over adding users or collaborators that can have access to your wave accounting software. This is helpful if you want to add an accountant tax person or a bookkeeper to help you with organizing your finances. You can also add business partners, a spouse etcetera. If you are running multiple companies and you want one person toe access to three or more companies than that person has to be invited each time individually to eat company. When you add someone, none of them will be able to see your banking passwords. For example, with Bank of America or Chase, none of them will be able to see your secret security question that you have set up for your banks. Like a place where you got married. Mothers made a name etcetera. None of them will be able to see the bank balances that are on the dashboard. That would be, for example, in this section right here in wave accounting. There are four different user types that you can add. Number one Administrator, which would be the highest level access Number two is editor number three is payroll manager if you are utilizing the payroll service by wave. Finally, Number four is viewer with view on Lee access. This has the least level of authority. Once you invite a user and they accept they will be asked to set up an account and wave if they do not already have one. This will allow them toe link up their own personal bank accounts or be associated with other companies if they desire. So let's head on over to the wave software and to add another user or invite another user. There are two ways you can do it. You can click on the shortcut here, invite a guest collaborator on the dashboard. Or you could go into settings taking the long way head on into setting. And then it will take it to the user screen here. Very first screen here and here are the four different types of users you can add. Now there is another one. The owner of the account is actually above the administrator and that they control the bank accounts in the past words and the bank's security questions. So there's even another level kind of an invisible level above this one. So you have the owner, and then you have these four levels. Okay, so we'll head on over, We'll start off at the top here with admin. And here you would type in their name first name, last name their email address, and here you can type in or pick from the drop down a position at the business and here on the right, and I will I will zoom in the browser here on the right. You can see the permissions that they have that the administrator has. An administrator, of course, will have access toe all options on the system. So here, going to the next one will be the editor and here editor. You have a choice whether you want them to send invoices or not. And here they would manage the payroll if you want them. Ah, here. You could see all the access that they have. They will have no banking access and integrations. They will have no access to that either. And no access to exporting data. As we had as we saw in the backup video. The video lesson that goes over the back ups integrations is over here on the left and that pertain to these third party applications that you can integrate with, for example, etc. And pay. Pau. There are some payments in the e commerce applications here. For example, if you use way a stripe or square or if you have a Shopify store so the editor will not be able to access any of these email marketing so on and so forth now heading down to payroll manager here. There are no options for them, but basically they will have no access toe the other part of the system. They will only have payroll access and then viewer cannot them toe have access to the payroll system or not. And of course, viewer will have the least access of all of the permission. And you could see the options here on the right, so that will conclude the lesson on adding users to wave accounting. If you have any questions, please leave them in. The discussion board will continue on in the next lesson. Thank you. 6. Backing up your data from Wave Accounting: Okay. Welcome back. I want to thank you for joining me on another lesson. So in this lesson, we will look at backing up your data That is in the cloud to your hard drive. Now you're saying Well, you know, why would we want to do this? Data is in the cloud to be safe and secure. And I don't have to worry about backups, right? Well, not really. And to illustrate why I will take you to a site called Daily Mile here if you go to daily mile dot com. This was a site where I used to keep track of all my running, have many times every day that I ran along with the mileage and the time. So I had a nice little summary of the data. It was a free program and they had they had advertisements that they would make money of would make money on, which is how they monetize the site. But one day they just shut down earlier in 2019 and all my data was on that website. So it's not a big deal that my running logs were on the website and they shut it down, but it is a big deal. If you have your financial information, your accounting activity on wave accounting, they were, for example, go out of business than all that data would be lost. So I will show you a few ways how you can back up that data. So you're not screwed in the event that they do end up shutting down and going back in tow . Wave accounting now so and wave does make money. Hopefully, they won't shut down, but they do make money by number one when they accept payment. When you accept payments, they take a little fee. So when you accept payments from your clients, they take a little fee similar to how papal makes their money. And also, if you utilize their payroll service, they make money off that. But I'll show you had a backup your data so you can feel safe and have peace of mind. So one way you can get your data as you go into the settings here and then scroll on down to data export, click on data export and here you have three options. You can export your accounting information into an excel format or see SV or you could export your receipts into a zip file. We are going to just pick Excel. So here it is telling you that the job is complete and it's going to email you a notification with a link that you can download a ZIP file that has all that has a few files in Excel format. So here is the email from way. Once the file is complete and I will download it here, and if you look on the bottom left, you'll see the ZIP file that is being downloaded. So here you could see it is giving you a file for the accounting information. That's my transaction detail. And it has items that I've built out, and we'll have my customers in an Excel format, my invoice items, payments and vendor information so it will send you six files in Excel format off your data that is, back that you can have in an Excel format for backup purposes. Another way you can back up that is, just go straight to your reports here, and what I would recommend doing is just go down to the bottom and go to your general ledger. This is all your accounting activity and you can export it here into a C S. V. Or PDF Also, just pick the appropriate date range. Another report that is good. This is more of a summary level, but you could go to your trial balance report and export that into a C S V or PDF format, so that would be another good one to export. That would be data once you finish, For example, your December 31 data or any when you come to an end of the month and you've completed your month. Let's say you've completed your March data. You can export your March trial balance so the child balance would just be a summary of where you're at at a moment in time account balance. But your detail activity from your general ledger will have all your general ledger transactions in a debit and credit format. So that way you have this data. You can import it into another program in the event that way, goes out of business and shuts down. So it's good periodically just to back up your data, download the Excel file so you have them just in the event that there is an issue with wave accounting software. And, of course, finally, the other statements you can download will be your profit and loss and balance sheet. Same thing. You could just export those into a C S V format or pdf formats that you have that data. Good. Practice periodically to download your information. So that will wrap up this lesson on backups. And we will continue more in the next lesson. Thank you. 7. Wrap up for Course 1: So that concludes the first lesson on wave accounting as part of the four-part series. So be sure to follow me. I have other courses on this platform. You can just follow me and that way you'll get a notification for new courses. Or you can head on over to my course page, my instructor page on skill share. And you can see all the courses that I have available on the platform. Thanks for joining me today.