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U
unnatpanchal
June 20, 2023
Question

QBO transfer from sole proprietor to business

  • June 20, 2023
  • 1 reply
  • 0 views

Well I had a client who was running his/her business. previously all the income & expense of that business is calculated in client's personal taxes. But the client opened a company in mid of the month and same business was carried out in that company.

Unfortunately, no change was done in QBO and all transactions were carried out without closing the dates and opening balance.

What to do now? as one year of the company is already over and it is necessary to file taxes? How to do that in QBO? I have tried to do that by selecting the dates (From & To) But previous transactions are also clubbed in this business. How to separate those transaction in QBO.

1 reply

J
JamesM4
June 20, 2023

Hello there,

 

Welcome to the Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be glad to share more info so you're on the right track with your work. 

 

In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. Otherwise, you're more than welcome to check out the following resource that'll help you: File sales tax. Just to confirm, are you looking to add the missing transactions to your account? If so, could elaborate more about how you followed to do that? Knowing this info will help me get  a better grasp of what you mean by the transactions are also clubbed. 

 

Let me know if this info helps. Otherwise, feel free to ask questions in the comments below.

U
unnatpanchalAuthor
June 20, 2023

The client was running a business under sole proprietorship till Jul06, 2022 and thenafter a company incorporated on Jul07, 2022. Everything remain as it is. Nothing has changed. All the transactions are carried out in the same way.

Unfortunately, in QBO as well, nothing is changed. all transactions are carried out in the same way which was carried out previously. Now, it is already one year and need to file taxes of that company.

The question is when I generate P&L and BS, it shows previous opening balances. When a new company get started, it has no any opening balances, right. Now, how to separate those two businesses in QBO?

J
JamesM4
June 20, 2023

I see what you're saying. QBO is designed to handle one company at a time. This means that all transactions that are entered in the program are added up together to create totals with no separations. It's vital to note that QuickBooks allows you to use classes in order to label your transactions so you can be able to filter them on your report totals. Feel free to learn more about this feature here. The program also provides the flexibility that allows you edit your opening balances and you can learn more about doing this using this article: Enter an opening balance for an account in QuickBooks Online. 

 

Let me know if you have other questions, I'll be on standby. 

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