Question

What is the best way to record intercompany transactions?

Forum|Forum|3 years ago
October 24, 2022
2 replies
0 views

This is for expenses paid by Company A for Company B. Do I create an invoice or are journal entries the better way to go for both companies?

QuickBooks Online

A

Alex M

Hi there tlsinclair17-gma,

It's vital that all your transactions be entered properly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of your transactions so you can see the financials of your company through various reports. I can point you in the right direction for assistance with this transaction.

Depending on various factors, this transaction can have multiple forms. In order to know the best way to represent this money movement for both companies, I recommend speaking to your accountant. Their accounting knowledge will be able to help you choose the correct transaction type as well as which accounts to affect so that the books for both companies remain balanced. You can add your accountant as a user to your QuickBooks account by going to the My accountant tab. You can also find an accountant near you that has experience using QuickBooks by clicking on the Find a pro to help button located in that section.

If you have any other questions, feel free to reach out here.

K

Kazza965

I have raised an invoice to a sister company for management fees, but there is payment for this instead the company has issued shares to the value of the invoice.

How do I show this on quickbooks? Do I do a Journal entry?

thanks

T

Trish_T

Hi Kazza965,

Thanks for joining us here. In QuickBooks Online you can record a loan from the owner of the company. As advised by my colleague Alex M, it's best to speak with an accounting professional for the best course of action to ensure a positive outcome on your books.

Please don't hesitate to connect with Community if other questions come to mind. We're always happy to help!