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Buy nowMy boss's own a few businesses and they have separate bank accounts for each business.
Boss A has some of his personal money held in account A and Boss B has some of his personal money held in account B.
I am trying to do the following transaction:
Take 5k from account A (boss A is contributing) and move it to account B. Then move the 5k +another 5k from account B (Boss B is contributing). Total of 10k is being moved to account c as a partner contribution from both partners to company C.
How do i record each of these transactions? I have automatic bank feeds
Out from A. Into B. Out from B. Into C.
Is it an expense or income at any point?
You can directly record the money entering the partner's business bank account through a bank deposit, sw1222.
In QuickBooks Online, it's important to keep personal transactions separate from business ones. Transfers involving personal amounts, like Bank Account A to Bank Account B, shouldn't be recorded in Company A or Company B's books. If these transfers show up in both companies, it's a good idea to exclude them. You should only record the transfer from Bank B to Bank C, as that's the relevant transaction for your Company C's Chart of Accounts.
Since these are movement of funds from and to different bank accounts, they can't be categorized as expense or income. You can instead record a bank deposit in Company C to record the contribution where the $10,000 is deposited. Here’s how:
Please check this article for detailed information: Record an owner's contribution or capital investment in your business.
I advise consulting an accountant to guide you in accurately recording these transaction movements.
Once you’ve completed the process, you can refer to this article for assistance in reviewing your downloaded bank transactions: Categorize online bank transactions.
Whenever you need assistance with the task process or guidance on what to do next, feel free to collaborate with our QuickBooks Live Expert Assisted Team. These specialized professionals can help you with anything you need for your business
If you have any additional questions or concerns about recording contributions, please feel free to reach out. We are here to help.
Your question raises more questions.
Are A, B, and C different businesses as well as different bank accounts? Are they all partnerships? Are the funds in the partner's equity accounts? If not, where is the $10K on the balance sheet, and why do you consider it "personal"? Why are you moving Boss A's funds from A to B to C? Why not just move it from A to C?
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