Hey. Thanks for the video. What if you're not expecting to have the money paid back. So there wouldn't be a liability to pay it back for company a and no assets to receive it in company b. It's a transfer because company b is opening a new bank account and I want to send the money to have an opening balance. Would it then just be an equity activity contribution/distribution? Thanks
I have 4 files, set up as bank acct type that is + or - at year end accountant can journal them into the liability accounts for me. Also shared credit cards so I use exclude feature alot as the feeds duplicate.
Great video. What would you recommend if one of this companies is in lets say California and another is in Puerto Rico which currently pays no taxes. So it is better to have your expenses in the USA based company and your revenue in Puerto Rico which is tax free. If I where to move money from the Puerto Rico company to the USA based company would you still due it like this? Or would it be batter to set it up as a draw from/to stockholders? Because you are just moving money and not necessarily moving it back. Thanks so much best video in this I’ve found yet!!!
Glad I could help! From what it sounds like here you may be best off (I'd recommend some discussion with a tax professional first to make sure this is the right move) creating separate Company A, Company B, Draws, and Contributions Equity accounts since the money will not be due to be paid back or reimbursed to the other company.
Depends on the tax situation. My general recomendation is if the companies are separate tax entities, then they should be separated with the bookkeeping, especially if Balance Sheets are needed for tax filings. But, if they are not separate taxable entities and/or have no need to file a Balance Sheet with the tax filing(s), then you may be able to get away with using one set of books along with some other QBO features such as Classes and/or Locations
What would you recommend for a real estate company that has multiple LLCs, let's say 30, but want to avoid paying the QB Online monthly subscription fee for each company, which would be upwards of $30K per year? Thanks for any guidance you can give.
@@ahptyrone To be honest with you, I am not entirely confident that you would be able to converge all of these LLC’s under the same QBO account in this case. There are possibilities within the QBO features “Locations”, “Classes”, or “Projects”, and you would be able to link all of your different Bank/CC accounts and categorize each transaction for each individual LLC within the same QBO file especially with setting up Bank Rules for each individual business bank/cc account and if everything is set up perfectly, you should be able to obtain LLC specific and separated P&L reports, however, on the Balance Sheet report/accounts is where separation would difficult.
Try locations, I recently added them into my books and each Business can have a separate tax ID and company name too (I called them businesses vs locations which is one of the options). I am very early in, but I believe income etc flow through the balance sheet for each Business when you filter by Business on the balance sheet. I started this in Q4 of last year which is why I cannot say 100% at this point. Using QB Plus and so far I believe it is superior to using classes although most bookkeepers do not understand the new Location/Business feature @@ahptyrone
I would do the same concept shown in the video of utilizing a “Due To/From” Liability account to account for the offsetting entries for the expense entry. Company B would then have a “Due To Comp A” liability to owe Company A a reimbursement that will offset the debit business expense.
Company B pays for insurance and payroll for all employess, company A must reimburse Company B for their portion of the payroll, taxes and insurance - how do i do this
I would for ease if possible, make the reimbursement payments separately (for payroll, insurance, etc) but it isn’t mandatory. Then, you would classify as expenses. Comp A’s expenses will increase with the bank withdrawals and Comp B’s expenses will decrease with the bank deposits.
Great video! Appreciate the overview in Excel to visualize how the accounts and entries should look.
Thank you! Glad it helped.
Hey. Thanks for the video. What if you're not expecting to have the money paid back. So there wouldn't be a liability to pay it back for company a and no assets to receive it in company b.
It's a transfer because company b is opening a new bank account and I want to send the money to have an opening balance.
Would it then just be an equity activity contribution/distribution?
Thanks
Exactly, Equity. Could be an Owner Distribution potentially or create a separate Company B Equity account to separate things out.
I have 4 files, set up as bank acct type that is + or - at year end accountant can journal them into the liability accounts for me. Also shared credit cards so I use exclude feature alot as the feeds duplicate.
Great video. What would you recommend if one of this companies is in lets say California and another is in Puerto Rico which currently pays no taxes. So it is better to have your expenses in the USA based company and your revenue in Puerto Rico which is tax free. If I where to move money from the Puerto Rico company to the USA based company would you still due it like this? Or would it be batter to set it up as a draw from/to stockholders? Because you are just moving money and not necessarily moving it back. Thanks so much best video in this I’ve found yet!!!
Glad I could help! From what it sounds like here you may be best off (I'd recommend some discussion with a tax professional first to make sure this is the right move) creating separate Company A, Company B, Draws, and Contributions Equity accounts since the money will not be due to be paid back or reimbursed to the other company.
A parent company with a foreign subsidiary company can operate with a single subscription & maintain both company books of accounts?
Depends on the tax situation. My general recomendation is if the companies are separate tax entities, then they should be separated with the bookkeeping, especially if Balance Sheets are needed for tax filings. But, if they are not separate taxable entities and/or have no need to file a Balance Sheet with the tax filing(s), then you may be able to get away with using one set of books along with some other QBO features such as Classes and/or Locations
What would you recommend for a real estate company that has multiple LLCs, let's say 30, but want to avoid paying the QB Online monthly subscription fee for each company, which would be upwards of $30K per year? Thanks for any guidance you can give.
When reporting for taxes, is there one parent entity filing for all of the LLC's under it's umbrella or would each LLC be filing as it's own entity?
@@essentiallyintentional for liability reasons, each LLC has it's own tax ID, and filing separately
@@ahptyrone To be honest with you, I am not entirely confident that you would be able to converge all of these LLC’s under the same QBO account in this case. There are possibilities within the QBO features “Locations”, “Classes”, or “Projects”, and you would be able to link all of your different Bank/CC accounts and categorize each transaction for each individual LLC within the same QBO file especially with setting up Bank Rules for each individual business bank/cc account and if everything is set up perfectly, you should be able to obtain LLC specific and separated P&L reports, however, on the Balance Sheet report/accounts is where separation would difficult.
@@essentiallyintentional Agreed, thanks for your insight
Try locations, I recently added them into my books and each Business can have a separate tax ID and company name too (I called them businesses vs locations which is one of the options). I am very early in, but I believe income etc flow through the balance sheet for each Business when you filter by Business on the balance sheet. I started this in Q4 of last year which is why I cannot say 100% at this point. Using QB Plus and so far I believe it is superior to using classes although most bookkeepers do not understand the new Location/Business feature @@ahptyrone
What do you do if company B writes a check using company A bank Account ?
I would do the same concept shown in the video of utilizing a “Due To/From” Liability account to account for the offsetting entries for the expense entry. Company B would then have a “Due To Comp A” liability to owe Company A a reimbursement that will offset the debit business expense.
Thank you that’s what I did 😊
Company B pays for insurance and payroll for all employess, company A must reimburse Company B for their portion of the payroll, taxes and insurance - how do i do this
I would for ease if possible, make the reimbursement payments separately (for payroll, insurance, etc) but it isn’t mandatory. Then, you would classify as expenses. Comp A’s expenses will increase with the bank withdrawals and Comp B’s expenses will decrease with the bank deposits.