How do I record a withdrawal from our company bank account to our holding company which is not listed in QB?

Hello 71ange,

Making sure you're able to account for all of the money movement related to your company is important. When it comes to QuickBooks, the program needs to have accounts set up in order to be able to move money from one place to another.

Whether that means setting up the holding company as a vendor or creating an account specifically for it in the chart of accounts, there may be a number of ways to address this. I recommend speaking with an accountant to make sure you're finding the best way to record this in your books.

To connect with an accountant that's familiar with the program, go to the Help menu and choose Find a QuickBooks Desktop Expert. You'll be able to search for QuickBooks Desktop-savvy accountants in your area.

I hope that helps! Give me a shout if you need any clarification. :)

Hello @71ange 

Presumably you would have two QB company files, one for ABC Company (operating) and one for XYZ Company (holding).

Typically you would have an asset or liability account set up (depending on which company owes the other company the most money most of the time) called Due to/Due from *Company Name*.

For example, if ABC Company is most often transferring money to XYZ Company, you would set up an Asset Account called Due to/from XYZ Company in the ABC Company file, and you would set up a liability in the XYZ Company file called Due to/from ABC Company.

I usually only use the one account to track amounts going either way so depending on which way the money is flowing, the account could have a balance opposite to what a normal asset or liability account would have.  If you're really picky, then you would set up two accounts for each company file.

In ABC Company file:

Due from XYZ Company       (Asset)

Due to XYZ Company            (Liability)

In XYZ Company file:

Due from ABC Company      (Asset)

Due to ABC Company           (Liability)

If transferring $10,000 from ABC to XYZ, JE would be:

DR    Due from XYZ Company

CR    Bank Account

Entry in XYZ would be:

DR    Bank Account

CR    Due to ABC Company

Hope that helps.