United States United Kingdom Australia Canada (English) Canada (French) France Singapore South Africa Global Ireland
cancel
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for 
Search instead for 
Did you mean: 
Spaceman
Level 2
posted
‎March 17, 2023 01:19 AM
last updated ‎March 16, 2023 7:19 AM

One bank account, two businesses

I've made the mistake of running two businesses using the one bank account. I have both businesses set up separately in QBO. Both link to the same bank account. How do I deal with transactions in one business that are from the bank feed, but related to an expense (or income) for the second business? (I have now created a second bank account and am migrating one business to that solely to prevent this in the future)

Solved
Reply
Best answer March 17, 2023
Solved

Best Answers
JamesAndrewM
QuickBooks Team
QuickBooks Team
‎March 17, 2023 03:56 AM

One bank account, two businesses

We are excited that you have decided to join us in the forum, @Spaceman. Let me assist you in dealing with transactions in one business from the bank feed yet related to an expense or income for the second business in QuickBooks Online.

 

We can begin by categorising the transactions. When a transaction is received from the bank feed, it should be classified as an uncategorised income or expense.

 

Next, create a transfer transaction from the first business bank account to the second business bank account in QuickBooks Online. It will move the money from one business to another. Here's how:

 

  1. Go to + New.
  2. Click Transfer.
  3. From the Transfer Funds From the dropdown list, select the bank account that the money is coming from.
  4. From the Transfer Funds To dropdown list, select the bank account that the money is going to.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date field.
  7. Enter a description of the transfer in the Memo field (optional).
  8. Choose Save and close or Save and new to complete the transfer.
  9. Click Yes if you double-checked the date.

 

After that, we categorize the transfer transaction as a transfer in QuickBooks Online. It will ensure that the transaction doesn't affect your financial statements for either business.

 

Finally, match the transfer transaction with the uncategorized income or expense transaction. It will ensure that both businesses have accurate financial records and that the transactions are accurately categorized.

 

I suggest consulting your accountant to ensure your financial records are accurate and compliant with accounting standards. It's also a good idea to separate your bank accounts for each business moving forward to avoid similar issues in the future.

 

I'm adding this article for future reference to show you how to properly reconcile your accounts so that they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

If you have any further concerns about your transactions, don't hesitate to post them here. Have a great day!

View solution in original post

Reply
2 Comments 2
JamesAndrewM
QuickBooks Team
QuickBooks Team
‎March 17, 2023 03:56 AM

One bank account, two businesses

We are excited that you have decided to join us in the forum, @Spaceman. Let me assist you in dealing with transactions in one business from the bank feed yet related to an expense or income for the second business in QuickBooks Online.

 

We can begin by categorising the transactions. When a transaction is received from the bank feed, it should be classified as an uncategorised income or expense.

 

Next, create a transfer transaction from the first business bank account to the second business bank account in QuickBooks Online. It will move the money from one business to another. Here's how:

 

  1. Go to + New.
  2. Click Transfer.
  3. From the Transfer Funds From the dropdown list, select the bank account that the money is coming from.
  4. From the Transfer Funds To dropdown list, select the bank account that the money is going to.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date field.
  7. Enter a description of the transfer in the Memo field (optional).
  8. Choose Save and close or Save and new to complete the transfer.
  9. Click Yes if you double-checked the date.

 

After that, we categorize the transfer transaction as a transfer in QuickBooks Online. It will ensure that the transaction doesn't affect your financial statements for either business.

 

Finally, match the transfer transaction with the uncategorized income or expense transaction. It will ensure that both businesses have accurate financial records and that the transactions are accurately categorized.

 

I suggest consulting your accountant to ensure your financial records are accurate and compliant with accounting standards. It's also a good idea to separate your bank accounts for each business moving forward to avoid similar issues in the future.

 

I'm adding this article for future reference to show you how to properly reconcile your accounts so that they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

If you have any further concerns about your transactions, don't hesitate to post them here. Have a great day!

Reply
Spaceman
Level 2
‎March 17, 2023 07:26 PM

One bank account, two businesses

Thanks @JamesAndrewM , I'll give that a shot.

Reply