Setting up Wave Accounting
There are different online services that can be used to setup up your fund accounting and bookkeeping. One service Avestor recommends using is Wave (www.waveapps.com). Wave is owned by H&R Block. It’s a fully online bookkeeping and accounting software and is free to use the software.
There are a minimum of two companies that need to tracked – the general partner/manager LLC and the fund entity. Additional entities may need to be tracked in certain situations.
Wave also provides bookkeeping services at a reasonable price. Avestor requires that bookkeeping for the fund be performed by a bookkeeper to ensure that books are reconciled on time and accurate. This is critical for managing a fund. If you feel comfortable with bookkeeping, you can do the Manager/GP entity bookkeeping yourself and have it verified by a CPA at the end of the year.
Setup:
1) Go to https://www.waveapps.com and create an account using your company email.
2) Set up a company using the Fund name. We recommend using real estate / rental as the option of type of company. The chart of accounts can be adjusted later.
3) After setting the company, select Settings on the left navigation bar.
4) The next step is to connect your bank account. Click on Banking on the left navigation bar. Select Connected Accounts to go to the Connected Accounts page.
5) Click on Connect Account button
6) Follow the instructions to find your bank and connect your bank account to Wave. Wave will need to import all bank transactions to manage the books.
7) After setting up the bank account, click on Banking in the left navigation bar
8) Select Transactions. If you have any transactions, they will be imported here.
After setting up the fund account, you will need to add the GP/Manager entity account as a second company in the same login. Avestor does not require access to the GP/Manager entity account.
