Q:

Subject: Multiple Companies

I have three companies but I want to use one bank account.
I order parts and items for Police Officers in one company.
I order parts for Marine and Sporting in another and
I have a welding Business as the final business.

I have three companies but I have one business bank account.
How can I get this to work properly?
Using QuickBooks Pro 2006

Also if I send you a copy of the QBB's of each account can you look them over and make suggestions or modify?

This is all new to me. I have been doing this by hand on paper for a couple of years but have decided to try and use QBooks.

Thanks in advance.

A:

Don't send any files to me. I am not accepting any new clients.

This is a matter that you need to work on with your own professional tax advisor, who should be able to help you set up your QB in a way that is properly coordinated with the related tax returns.

Whether you can operate multiple businesses out of a single bank account depends on the ownership of those businesses. If they are all owned by the same entity, a single bank account can work, as long as you properly use the QB Classes to separate the activity for each business. This would be okay if all of the businesses are owned by you individually and you report them on Schedules C with your 1040, as well as if they are all owned by a single corporation. You would use one QBW data file.

If the businesses are each owned by separate entities, such as a different corp for each one, you must have a separate bank account for each, as well as a separate QBW file for each. Money can be transferred between the accounts if necessary in ways approved by your professional tax advisor.

Again, any competent tax advisor should be able to help you set this up properly.

Good luck.

Kerry Kerstetter

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/17/2006 06:43:00 PM Send this post: