Business covering another business's expenses

I'll share the steps with you on how you can transfer the funds from one business to another, TNCL.

Here's how you can transfer funds to the other company:

1. Click the +New button and select either Check or Expense.
2. Select the bank account the funds are coming from.
3. Enter the Payee, Payment Date, and the Payment Method (optional).
4. Under Category details, in the Category column, select an Asset or an Equity account to reflect the funds going out of the business.
   Note: It's a good idea to consult an accountant or tax authority to be sure to select the correct account.
5. Enter the amount to be transferred in the Amount column.
6. Select Save and close or Save and new.

The transfer is recorded as a check or expense coming out of the company.

Then, follow these steps to receive funds transferred from the other company

1. Click the +New button and select Bank Deposit.
2. Select the bank account the funds are going to.
3. Enter the Date.
4. In the Add funds to this deposit section, optionally specify who the funds were Received From.
5. From the Account column ▼ drop-down menu, select an Equity or a Liability account to reflect the funds coming into the business.
   Note: It's a good idea to consult an accountant or tax authority to be sure to select the correct account.
6. Enter the amount received in the Amount column.
7. Select Save and close or Save and new.

However, we would also recommend reaching out to your accountant for additional advice on how record the transfer of funds. 

Let me know if you need anything else. 

Thank you for your response.  I know how to do a straight transfer of funds from one business to the other.  I maybe didn't explain well.  What I need help with is the owner is using his debit or credit card or setting up auto withdrawl from the main company's accounts for expenses that belong to the smaller companies.  I do not want to record them as an expense in the main company because they do not belong to the main company. Does that make more sense?

Hi, 

Were you able to figured out how to post the debit for the main business? I have the same issue with my client, he has been paying bills from the main business the expenses belong to the smallest business.

How did you ended up doing the posting for the main bussiness?

Thank you!

Yesi

That is the same way I do it.

In the main account, the debit would be to an asset account called "loan to company B" or similar if the plan is to pay it back. It is going to be a permanent transfer of equity you can use owners draw for a sole proprietor. For a corp check with your tax preparer.