Skip to main content
A
Attempte
July 21, 2024
Question

To separate out two companies with the same credit card (don't ask) would you create a "Holding Bank Account" to clear the funds then cut a check?

  • July 21, 2024
  • 1 reply
  • 0 views
I am using the international version and by banking mess up we have been running 2 companies off the same credit card machine. To transfer funds, I am thinking to set up a holding bank account for the 2nd company and then cut a check to show the withdrawal. I am running 2 different QB accounts so added together, they do match (ie A+B = CCD statement - barring bank error)... just not sure how to try to reconcile the CCD deposits in Company A.  Thank you

1 reply

I
IrishNinoJ
July 21, 2024

Hello there, Attempte.

 

Yes, you can set up a holding bank account for the second company and then cut a check to show the withdrawal. Here's how:

 

  1. Go to the Gear icon and select Chart of Accounts.
  2. Click New.
  3. Choose Bank for the Account type. Under Detail Type, pick Cash on hand.
  4. Then name the account Holding Account. 
  5. Once done, press Save and Close.

 

However, I still recommend consulting an accountant to accurately track your transactions and reconcile accordingly.

 

In addition, you can visit this article when it's time to reconcile your account.

 

Let us know if you have any banking concerns. We're available to help you 24/7.

A
AttempteAuthor
July 21, 2024

Huge thanks for the reply. They aren't duplicate transactions and, ironically, our biggest issue (foreign country), is this: our bank's money coming in bizarrely isn't batching right but....focusing on the issue for now =

 

Random day:

$100 run for Company A

$150 run for Company B

Total Batch $250 deposited into Company A's bank account (less CCD fees)

 

Currently In QB I have two separate companies. Added together, yay... but... never matching bank statement which shareholders like to see 🙂

 

So, for now:

Company A gets daily sale of $100 deposited to CCD Clearing (less CCD transaction fees)

Company B gets daily sale of $150 deposited to CCD Clearing (less CCD transaction fees)

 

A LOT of journal entries 🙂

I then try to reconcile but of course I will never ever be able to fully match the two companies to the CCD statement because the sum will always be short for Company A. The tax system in the country I am in is such that we pay a percentage of our business license based on gross income - so I would be desperately penalizing the Company A to show Company's B income but it is pertinent.

 

But that means it is only when I physically add the two companies statements that I can demonstrate the full credit card deposit. This gets mired by the bizarre bank we are using and our batches don't match precisely the statement but that is another battle. 

 

I was thinking the solution is to create a new bank account in Company A (sub account of main Bank Account) and show a single monthly close out of the income transfer to Company B) and zero it but can't see how that won't look like an epic false income for Company A.

 

Love accounting normally but this one is a bit of a pickle when it comes to the tax on the gross income.

 

Thank you!

Terms & ConditionsAccessibility statement