Appearing as part of our 2011 fiscal year end and tax preparation resources for small businesses.

Get ready for small business tax season

"Right now, I track my expenses using a tool other than Wave"

1. Log in to your expense tracking software (such as Expensify).

2. Download a report with your yearly totals from this software. Expense software does not track revenue, and revenue still needs to be identified from information such as bank statements, a spreadsheet, receipts, or another accounting application.

3. Sign in to Wave.

4. Go to Settings.

5. Select Journal Transactions.

6. Select Add Transactions. fiscal year end 2011: wave accounting journal transactions

7. For Description, write something like "2011 fiscal year end expenses" that clearly describes your entire report.

8. Under Date, select the final date on the report i.e. if your report shows information up to May 1, write May 1 in the date field.

fiscal year end 2011: wave accounting journal transactions

9. From the Account drop-down menu, select the account that best fits each category subtotal.  Under description, write in the name of the category that you had in your original report.

10. Write the amount of each expense subtotal in the debit field. Continue to add lines until you have input each line from your report. To enter your revenue, select the most relevant category from the drop-down menu and enter the amount into the credit field.

Note: Taxes should not be included in your subtotals. Enter taxes as separate lines. For any taxes you collected, select Taxes Payable from the drop-down menu, and input the amount in the Credit column. For any taxes you've paid, select Taxes Receivable and input the amount in the Debit column.

11. All Journal Transactions must balance. That means the total of the Credits must equal the total of the Debits. If there is a difference between these once everything is input, you'll need one more entry to make things balance.

Click Add a Line. Select Retained Earnings/Deficit from the drop-down menu. Next, look at the total Debits and total Credits. Make a mental note: Which is greater? Subtract the smaller one from the larger one. If Debit is greater, put the difference in the Credit column. If Credit is greater, put the difference in the Debit column.

12. Select Save. The information from your report is now listed in Wave as Income and Expenses.

13. Keep your report for future use, since it lists each individual transaction.

14. Congratulations, you can skip Step 2 and move on directly to Step 3!

Need more help? If you want more assistance, or if you prefer to let someone else do the work, we can put you in touch with accountants and bookkeepers from the Wave Pro Network. Find a Wave Pro.

Make your next tax year as pain-free as possible: Sign up for free online accounting for small businesses, by Wave.