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India123
January 26, 2025
Question

Splitting a bank account I've had for a while in Desktop

  • January 26, 2025
  • 1 reply
  • 0 views

Hi

The company I work for has a checking account they have used for a number of years.  A couple of years ago We received money donated for a sister company and deposited into the checking account.  The amount has been reducing and we have a separate class to show where expenses are posted to (which company).  Now my manager wants me to split the account in Desktop so that the account reflects the remaining balance of the sister company.  Please can you tell me the easiest/simplest way to do this (without having to undo 2 years of transactions) so that they can have this going forward.

 

thank you so much

1 reply

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NerbynMaeI
January 26, 2025

Managing multiple entities is crucial specifically separating the sister company's remaining balance without disrupting your existing financial history, India123. I'm here to help you maintain your accurate financial tracking.

 

Before finalizing any changes, I recommend consult your accountant to ensure the methods meet your financial reporting needs and maintain record accuracy.

 

To proceed, let's set up a new checking account specifically for the sister company in QuickBooks Desktop. This account will be used to reflect the current balance and any future transactions related to donations and expenses for the sister company.

 

For detailed steps, here's how;

 

  1. Access your QuickBooks Desktop company.
  2. Go to the Accountant menu, and then select Chart of Accounts.
  3. Below, click the Account and then choose New.
  4. Tick the Radio button beside Bank, and then click Continue.
  5. Enter all the necessary information.
  6.  Click Save & Close.

 

Once done, determine the amount that corresponds to the remaining balance for the sister company within the original checking account. Then record a transfer of this amount from the original checking account to the new one. This step will effectively move the funds while preserving the integrity of previous transactions.

 

Additionally, ensure that you continue to use the existing class tracking for identifying expenses related to both companies. This will keep financial records organized and allow for better reporting. 

 

Moreover, I'll provide these resources to help you maintain accurate financial records and address common reconciliation issues. These resources will help you troubleshoot issues and ensure a smooth reconciliation process.

 

 

Accurate financial records are essential for effective business management, and our goal is to prevent discrepancies. The Community team is always available to assist you with any QuickBooks issues you may encounter. Just Reply to this thread, and I'll be available to provide you with the assistance you need.

I
India123Author
January 26, 2025

Thank you so much NerbynMael!

I will try this tomorrow.   I am confused how two separate accounts can be reconciled to one bank statement as the totals will not be the same.  Or will they be together in the desktop recon as one is a main and one is a sub account?

 

Thank you!

L
LouiseG12
January 26, 2025

Reconciling your account seems essential in your business right now, India123. Let me tackle some details to make you understand regarding reconcile separate accounts using one bank statement.

 

To achieve a precise reconciliation, it is essential to acquire two distinct bank statements, each corresponding to one of the banks involved in the accounts. This ensures that all transactions are accounted for accurately in their respective accounts. When reconciling two separate accounts in QuickBooks Desktop (QBDT) using a single bank statement isn't available.

 

If the account structure includes both a parent account and a sub-account, the total balance from the sub-accounts will automatically be consolidated into the parent account. This arrangement simplifies the accounting overview by aggregating all sub-account balances into the main parent account.

 

In addition, it is crucial to ensure that each transaction within the accounts is recorded with precision to maintain accurate financial records. As for any remaining balance that'll appear, it can be adjusted by recording a transfer or making a journal entry. This step is necessary to ensure that the displayed balance reflects the correct amount in the accounts.

 

Furthermore, I suggest seeking advice from your accountant. They can offer valuable insights into the best practices for financial management and reconciliation procedures.

 

Moreover, I've attached these articles for reference regarding troubleshooting reconciliation errors and if you need to view and export your reconciliation reports in the program: 

 

Please remember, accuracy in recording each transaction is vital to the integrity of your financial data. Should you have more questions regarding reconciliation, feel free to reach out. I am always here, ready to provide you with the information and assistance you need.

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