Wave: Enter a Bill, Pay It and Reconcile

Why this matters

Maya (made up) almost paid the same $250 supplies bill twice because it lived in her email, not in her books. Her accountant wants bills entered when they arrive, paid from the books so they clear, and the cash account reconciled every month.

In this module you enter a supplier bill in Wave with a 30-day due date, record the payment so it shows as Paid, and open Wave’s reconciliation for month end, all on real Wave screens.

What you’ll build

A $250 supplier bill with a new vendor and a due date, paid from the books so it shows Paid with $0.00 due and no second expense, and Wave’s reconciliation switched on for the month-end check.

What you need

Nothing to start the practiceThe practice is built from real Wave screens and does not touch any account.
A free Wave account with a practice business, to do it for realUse clearly named test vendors, and your bank statement’s end date and closing balance for the reconciliation.

Concepts

3 ideas you’ll use in the practice.

Bill or expense?

Use a bill when a supplier will be paid later: it records the cost now and an amount owed (accounts payable) until you pay it.

Use an expense, a withdrawal in Transactions, when you have already paid, for example a card purchase.

Paying a bill does not add a second expense

Record a payment on the bill: method, amount, date and the account the money left from. The bill shows Paid with $0.00 due.

If the same payment later arrives from the bank, match it to this bill payment rather than adding it as a new expense.

Reconcile every month

Switch on Reconciliation on Accounting › Transactions. Wave asks for the bank statement’s end date and closing balance, then lists your accounts as Never reconciled until you finish one.

Tick each transaction on the statement until the difference is zero. If it will not balance, look for the missing or duplicated transaction rather than forcing an adjustment.

Practice

Do every step yourself in a practice copy of the real tool. It checks your work, and “Do it for me” finishes any step you get stuck on.

WaveWave: Enter a Bill, Pay It and Reconcile10 steps · ~8 min · nothing touches your real accounts

Start the practice →Prefer to read? Step-by-step guide

Do it for real

Now repeat it in your own account. Tick each step as you go.

In your practice business, open Purchases › Bills and click Create a bill (Create your first bill on a new business).
Under Vendor choose Add new vendor and enter a clearly named test vendor.
Enter the Bill #, a Due Date, an Expense Category and the price, then click Save.
Click Record a payment, choose the payment method and the account the money left from, and Save.
Check the bill shows Paid with $0.00 due.
At month end, open Accounting › Transactions and switch on Reconciliation.
Enter your statement’s end date and closing balance, pick the account, and tick off the statement lines until the difference is zero.

Quick check

3 questions to check you’ve got it.

1. You bought supplies on 30-day terms. Bill or expense?

Expense
Bill
Invoice

Show the answer

Bill. A bill records the cost now and the amount owed until you pay it later.

2. After you record the bill payment, what does Wave show?

Paid, $0.00 due
Unpaid, $250.00 due
A second $250 expense

Show the answer

Paid, $0.00 due. The payment clears the payable. It does not add another expense.

3. Where do you start a reconciliation in Wave?

Reports › Balance Sheet
Purchases › Vendors
The Reconciliation toggle on Accounting › Transactions

Show the answer

The Reconciliation toggle on Accounting › Transactions. Wave puts reconciliation on the Transactions page; you enter the statement’s end date and closing balance there.

Course complete

You reached the end of Wave Accounting for Beginners

That is the weekly and monthly routine: categorize every transaction, record payments against invoices and bills, and reconcile every bank account each month.

Pick your next course →