We are starting a second company that will be a new LLC. What is the best way to show movement of funds between the two companies?
We are starting a second company that will be a new LLC. What is the best way to show movement of funds between the two companies?
Hi Michelle. If the companies are in 2 different databases (separate company files), then this Knowledgebase article may provide some insight. If the companies are in the same company file, you can use the same method, but the asset and liability accounts would be in the same chart of accounts.
The article is helpful but left off an important piece. Each entry is two sided so the bank acct is one side, the other is a “due to” on the company being loaned the money. Or “due from” on the company loaning the money.
or if the new company is a subcontractor to the existing then they need to bill the company for work provided just like any other client. And the paying company must enter through AP and expense it.
So lately when I try to answer but I’m not logged in I get an error where it used to keep the response take me to the login screen and let me log it. Now I must login first or it won’t keep my response.
*Community Hub is the new name for Sage City