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  • Transferring money from one account to another.

    The company I work for actually has three companies under one umbrella. He transferred money (just money, not sales) from one account to another. I do not know how to show it on the reports, or NOT show it on the reports. Right now it looks like that deposit came in against expenses.

    I need to know how to transfer that money from one account to another without it showing up on the monthly, quarterly and yearly reports.

  • #2
    If you mean 3 companies in one file, that is the first problem, the requirement is that each company has its own company accounting file

    Then, assuming the companies do have their own financial file, how are they taxed? Sole proprietors, where the owner is the owner has both companies could do it one way, partnerships another, corporations get much harder

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    • #3
      Originally posted by Rustler View Post
      If you mean 3 companies in one file, that is the first problem, the requirement is that each company has its own company accounting file

      Then, assuming the companies do have their own financial file, how are they taxed? Sole proprietors, where the owner is the owner has both companies could do it one way, partnerships another, corporations get much harder
      All three companies are under the umbrella of Quicken Pro, but each has it's own file. He is sole proprietor. It should be a simple matter. I don't want it to show up on the P&L statement. I just need to know how to make the transfer without it showing up on the P&L report. Where should I put it?

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      • #4
        Don't worry: The transactions will not show up on your Income Statement, since the only accounts affected are Balance Sheet accounts.

        Let's suppose each of the three companies has its own banking account. If so, there should be three different banking accounts listed under the Bank section of the Chart of Accounts. Note that there need not be accounts at three different banks.

        Under the Bank section you should have something like the following (I am going to use account numbers to make the entries easier):
        • 1010 Company A
        • 1020 Company B
        • 1030 Company C
        Suppose the owner transfers $5,000 from account 1010 to account 1020. You will need to make just one General Journal entry

        Debit account 1020 for $5,000 and credit account 1010 for $5,000

        Debiting an asset account shows an increase in that account.
        Crediting an asset account shows a decrease in that account.

        You don't need to show where the funds come from (unless you are Voya Finacial with its orange numbers). You have already accounted for the source of the funds in your Income Statement entries.

        For what it is worth, you could greatly simplify your chart of accounts you had just one chart of accounts and used QuickBooks Class tool (to keep the "companies" seperate) if your version of QuickBooks does have that tool.

        Lorin Browning, Ph. D.
        Fellow -- National Tax Practice Institute
        [email]lorin@lorinbrowning.com[/email]

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        • #5
          The same problem exists for me. I have two farms which must be kept separate but funds pass from one to another sometimes. Also I charge to the farms expenses for which I use personal Credit Cards. (I used to have Credit Cards for each farm but quit that as too much bookkeeping).

          So what I do is invoice and bill across accounts. If Farm_A loans $ to Farm_B, Farm_A writes a check to Farm_B and invoices Farm_B. I don't have the bank accounts recorded in both sets of books.
          Colorado Springs and Eastern Washington
          QB Pro 2018 used for two farms and personal

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