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DebGer
Level 1

Allocating / recording payments for an acquistion

We recently acquired a portion or division of another company.  We have the financing for this acquisition recorded as a long term liability loan payable.

 

Now, my question is, what is the best way to record the actual payments to the other company for the assets we acquired?

1 Comment 1
LauraAB
QuickBooks Team

Allocating / recording payments for an acquistion

Welcome back DebGer,

 

I love that you find the QuickBooks Community to be a valuable resource for your questions about working with the program. It's good that you've got the financing loan set up the way you'd like in your books, and I know it's equally important to make sure that the payments to the other company are also recorded correctly.

 

When you're recording payments made to another party, there are a few straightforward features at your disposal: expenses, cheques, and bills. The difference between these options is subtle, but the major difference is a single payment versus being invoiced and then making a payment later. This article explains in more detail if you'd like to take a look: What is the difference between bills, cheques, and expenses?

 

You could also consider a transaction like a journal entry if that's better suited to your needs. To find which of these options is best suited for your needs, I recommend connecting with an accountant. An accountant will be able to give you guidance on how to best record these transactions based on your situation specifically while also meeting the requirements for bookkeeping.

 

I've highlighted the My Accountant tab to you before, but just to be sure you have this information, that tab is the way to go to connect with an accountant right in your QuickBooks account. I know in one of the previous conversations we had, it sounded like you may have an accountant already. If you haven't already done so, you can invite them as a user to your books using the field in that tab. If you don't have an accountant, though, the Find a pro to help button can connect you with someone near you that knows accounting and QuickBooks Online. It's a win-win!

 

I hope that helps. :)

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