Multiple Entities 1 Archives

How To Handle Two or More Tax Returns in Your Investor Books Pro Company File (Multiple Entities)

29 minute video shows you step by step

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Question:
Hello Mike,
My name is William and I am Jim's bookkeeper since February.  Since that time, I have updated the QuickBooks company files for his three companies and have been processing invoice payments through the QB accounts payable system and maintaining the cash balances, but we have some catching up to do on the accounts receivable side.  I have several months worth of invoices to post and receipts to receive against these invoices (right now the receipts are just booked as deposits hitting Cash and Rental Income, A/R account is not being used yet).  With regards to QuickBooks Pro, should I enter the invoices for the tenants using QuickBooks and process the payments using the normal A/R process, or do I need to enter the invoices using QuickBooks Pro (basically a chicken or the egg question, does QB feed from QB Pro or visa versa)?
Thank you,
William
-Pennsylvania
ANSWER:
William, got your question...
first of all, you are making it way more complicated than needed.
(many old school accountants and CPAs have a hard time using QuickBooks because they can not grasp that one company file can handle many companies)
 
This system uses 2 Company files
The first company "Investor Books" is used for everything each company owns (assets) and everything each company owes (liabilities)
Assuming all of your companies are real estate companies, all of these separate companies can

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8 minute On Demand Video shows you how to create Balance Sheets for multiple entities QUESTION:

Thanks Mike! I have a couple of follow up questions. For the LLC, single or multiple, are we suppose to classify every item regardless whether it is a income statement item or a balance sheet item? Also, can I run a balance sheet just for LLC #1 that will not show LLC #2 balance sheet items? This is where my issue comes in, as my balance sheet is not in balance when I run a report just for LLC #1.

Darren Joe’s partner

ANSWER:

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Hi Guys. In need of some investor books help. here are my questions: 1) In need a video/instructions for creating intercompany transactions.

For example, we have multiple LLC and each LLC has its own tax return.

If all owner capital contributions are deposited into LLC1, then are transfered through bank transactions to LLC2 or LLC3, how do I set up my chart of accounts for that transfer?

2) At year end, how do I clear out the Income Statement for all the entities to Retained earnings?

Remember the Income Statement is organized by class (not separate accounts for each property), so how does that end of year Income Statement get put in the proper retained earnings accounts?

Thank you, Joe   ANSWER:  from Mike

Great Questions Joe! I can tell you have been working on a good asset protection program.

#1 - first of all a tip for Joe (you can achieve the same benefits using single member llcs without having the burden and expense of filing extra tax returns)

Joe, here is the to the video on Multiple Entities

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How to Properly Set Up and Handle Multiple Entities

Please Use The PAUSE Button to STOP Video as you set up your Investor Books

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