Quickbooks Online- Transferring Funds between Entities
In this episode, Nick Baldo dives into managing multiple business entities in QuickBooks. He discusses the benefits of unified management, the downsides of the transfer function, and how to utilize journal entries for intercompany transactions. He also covers balance sheet adjustments, setting up intercompany loan accounts, and common challenges faced. The episode concludes with a word from our sponsor, Real Estate Accounting Boot Camp.
Key Points
- When managing multiple business entities within a single QuickBooks Online Plus subscription, avoid using the transfer function as it doesn't allow specifying the business or location, leading to a 'not specified' column in the balance sheet.
- To accurately reflect intercompany transactions in QuickBooks when dealing with multiple entities, use journal entries instead of the transfer function to ensure each transaction is correctly associated with the appropriate business.
- Implement an intercompany loan account to balance the debits and credits for each entity involved in intercompany transactions, ensuring that each business's balance sheet remains accurate and in agreement with the fundamental accounting equation.
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Link to Related Video: Quickbooks Online: How to Manage Multiple Businesses within one Subscription - https://bit.ly/3pEAulp
Multiple Businesses in one QBO Plus Subscription!!! Such a game-changer! But there's a catch..you MUST be careful with inter-company transactions. Watch this video and you'll be all set!
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Transcript
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