What are the simplest steps to enter one credit card used for two businesses.
I work for two small businesses working out of the same office.
They use one credit card to pay for purchases for both businesses.
They also have one merchant terminal that accepts payments for both businesses.
Each business has its AR company file.
What is the most simple process to enter credit card purchases for each business?
What is the most simple process to manage merchant receipts for each business?
Many thanks
Annette
Hi Boatshed007
Thanks for your post. One way to handle this is to set up loan liability accounts for each company. So in Company A you'd have a loan liability account called Company B loan and in Company B you'd have a loan account called Company A loan.
Let's say Company A has the credit card that is used to pay for purchases:
- Company A expenses would be entered as normal, selecting the credit card as the Pay from account
- Company B expenses paid for by Company A:
- in Company B file enter the purchase as normal, but select the Company A loan account as the Pay from account
- in Company A file record Spend Money transations for the purchases. The Pay from account is the credit card and allocate to the Company B loan liability account
Company A also has the merchant terminal:
- Company A payments are entered as normal
- Company B payments received into Company A's bank account:
- in Company B file enter the payment as normal but select the Company A account as the Deposit to account
- in Company A file record Receive money transactions for the payments. The Deposit to account is the bank account and allocate to the Company B account
We do recommend checking with your accountant to make sure this method suits your business requirements.
Please let me know if you need further help.
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