Hi - Sorry for the long thread and that you had to ask again to get answer. I'm new to this site myself but of course not new to accounting or QB, but I know the other guy is a regular here and any other time he is all over my post immediately with his critique, except of course when I ask him to reply, then we get nothing.
So maybe I need to post a response and then he will chime in to correct me here as that is common too. The correction he suggested sounded more like a long-term solution if you were going to continue this practice since he referred to balance sheet accounts, but my impression is that this is one-time fix to do.
There are always multiple ways to do things in accounting and we all have reasons for our preferences based on individual experience of course, so sorry you got variety of answers since I know that is worse than none and I know even where we say the same thing it might sound different if worded differently.
QBT is definitely the one who works with QB more since I focus on Govt contractors/any system, but they must also follow all of the same general accounting practices and just have addiional requirements added on top of that making things more complex and in some cases, changing priorities for making decisions.
I know we have worn you out with the advice about "what you should do and should not have done here" so hate to add more generic info but in order to give correct advice you need to know as much as possible. Since we all know this was done incorrectly, the question is what is least worst way to handle this situation.
I just have a couple questions here in red to confirm what I can't see on your books or don't already know.
One of you mentioned both being LLC's, is that true for all four of the companies we are discussing here?
I ask because accounting differs in some function areas between C Corp, S Corp and LLC Sole Proprietor, for example with regard to equity where there are Dividends, Distributions and Draws for the three above.
The first thing I would ask is what has already been done, so we can minimize what needs to be changed.
I assume the Company B already sent check to AMEX, if not, we would want to stop that part beforehand since one company should not be paying another's bills, you can see how that just even looks/sounds bad.
However, as the owner of the business, of course, you/they can add/take money to/from your companies. If you were planning to continue to do this, we would want to provide you with a different solution long-term vs. a correction to a one-time oops. Have you made any entries yet on either company's books?
As mentioned earlier, the specific expenses belong to the company who incurred them and the expenses should be coded accordingly on that company's books. Are any of the expenses shared between them?
Just asking to confirm there is clear split of whose is whose to make sure we do not need to consider that.
Do you already have AMEX card setup on Company A and already know how to do normal CC entries?
Can you tell me how you do those entries now -- Do you download CC statements or input transactions?
In my industry, expense reports or P.O.'s are required, may I assume these are not items we must consider?
Just checking for where to start detailed explanation.
