Quicken & Other Budget/Accounting Software/Paying Bills

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Question
I operate two businesses and use quickbooks for both. Business A is a recent start-up while Business B is established. I have recently paid bills out of business B for Business A.
My question is how do I account for the bills in both quickbook accounts?
Thank you!

Answer
Hi Ben,
The following assumes that you have set up a 2nd QuickBooks file to account for the 2nd business.

1. Set up an other current Asset account in Company B  called
  Due from (to) Company B
   List > chart of accounts > add new

2. Set up an other current liability account in Company B  called
  Due to (from)  Company A
   List > chart of accounts > add new

When you post an expense in QuickBooks Business B  post to the Due from Company B account
Then open Company A account and post the expense,  there are several ways to do that
A journal entry or a zero $ bill

Journal entry
Debit expense  in name field enter vendor name
Credit Due to Company B

Zero $ bill
Open a Bill (vendor menu)
Enter vendor name
Enter the expense or item purchased
then in the expense tab, add the category Due to Company B
for the amount , enter a NEGATIVE amount for the total bill
So the Bill total will be zero


If both businesses are NOT Scorps, partnerships, or Limited liability companies
you could run both from the same QB file, and turn on class tracking to keep the
Profit & loss separate
Edit menu > preferences > accounting > select class tracking
now a field will open up so that each revenue and expense can be categorized to the
  company A or company B

Hope this helps,

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
www.qbalance.com
We sell and support QuickBooks Enteprise
https://www.qbalance.com/enterprise_quickbooks.htm  

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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