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I have two accounts - a trust account and an operating account.

When I process credit card payments, they go through an operating account and then are transferred to the trust account. These payments are NOT income until I remove them from the trust account when they are earned, which occurs later on . My questions are as follows:

1) How should I categorize these payments in Wave when they are deposited into my operating accounting (currently categorized as income)?

2) How should I categorize these payments in Wave when they are withdrawn from my operating account to my trust account (currently categorized as expenses)?

  • Are you on a cash basis, or an accrual basis? – Selkie Feb 8 at 16:48
  • Accrual basis accounting – siouxfan45 Feb 8 at 23:50

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