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| | {{ForumReplyPost|UserID=Natalie|Date=October 23, 2008|Text=The issue with using classes on the balance sheet, as TTMM points out, is that the classes were not made for that purpose. So, for example, the retained earnings will not show up correctly. I have a similar situation with a client that has three separate businesses in one corporation. I find that using three separate QBs files works out quite well. When statements are needed, we run "combined" reports.}} | | {{ForumReplyPost|UserID=Natalie|Date=October 23, 2008|Text=The issue with using classes on the balance sheet, as TTMM points out, is that the classes were not made for that purpose. So, for example, the retained earnings will not show up correctly. I have a similar situation with a client that has three separate businesses in one corporation. I find that using three separate QBs files works out quite well. When statements are needed, we run "combined" reports.}} |
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| | + | {{ForumReplyPost|UserID=Bean|Date=23 October 2008|Text=YOu have a very good and valid point, Natalie. That was my main concern (retained earnings will be all combined if I used one file), which brought me to this post. I'm concerned should later they sell off each portion (location) of the business and how to account for it correctly if they are all combined. How do you run combined reports from QB of different files?- do you export them all in Excel format and then manually combine them on the spreadsheet?}} |
Revision as of 21:40, 23 October 2008
Discussion Forum Index --> Accounting Questions --> Separate books for separate business operations?
Bean (talk|edits) said:
| 21 October 2008
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| Several franchises are owned by my client (same federal ID#). Client is C-Corp, just formed this year. I'm thinking of setting up separate books (in QuickBooks) for each franchises, should one day they want to sell a portion of their business - wouldn't this make the books easier to follow? I could just separate them in terms of classes in the P&L section (but still in one QB file), though might not be able to in Balance Sheet. Has anyone run into this? Please share your thoughts!!
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TTMM (talk|edits) said:
| 21 October 2008
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| Although you can't do classes for the Balance Sheet, you could set up sub accounts for each Balance Sheet account to differentiate each franchise. You could then set up a memorized Balance Sheet that just shows the assets/liabilities for franchise #1, another for franchise #2, etc. Then it would be pretty straight forward to export to excel and format each with a separate P&L. How many franchises are we talking about? It might be more tedious to have separate companies than to do one company.
By the way, you will get more responses if you complete your profile.
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Natalie (talk|edits) said:
| October 21, 2008
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| ? Thinking of setting up separate books for each franchise yet using classes in the P&L? At first I thought you meant you were going to set up separate company files. What kind of businesses are these? It may make sense to have separate companies rather than try to use classes.
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Bean (talk|edits) said:
| 23 October 2008
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| ABC Corp owns three home care service franchises (same name and same EIN) that are operating separately in three different locations. Either I can set them up in separate files in QuickBooks OR one file using different classes. I think the latter approach will be easier and more logical. I like TTMM's advice in subcategorizing the Balance Sheet items. All three will be combined for tax purposes. Thanks for your inputs!
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Natalie (talk|edits) said:
| October 23, 2008
|
| The issue with using classes on the balance sheet, as TTMM points out, is that the classes were not made for that purpose. So, for example, the retained earnings will not show up correctly. I have a similar situation with a client that has three separate businesses in one corporation. I find that using three separate QBs files works out quite well. When statements are needed, we run "combined" reports.
|
Bean (talk|edits) said:
| 23 October 2008
|
| YOu have a very good and valid point, Natalie. That was my main concern (retained earnings will be all combined if I used one file), which brought me to this post. I'm concerned should later they sell off each portion (location) of the business and how to account for it correctly if they are all combined. How do you run combined reports from QB of different files?- do you export them all in Excel format and then manually combine them on the spreadsheet?
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