Two companies using the same bank account-PL disaster

Question:

I run two different companies through the same bank acccount in QB. I dont use any of the online banking funtions so this method works for me. However when I run a P/ L report I would like to differentiate transactions betweeen company “A” and “B”. Is that possible. Perhaps creating a second company might be the answer but there is really only one bank account.

Answer:

Have you thought of tracking Company “A” and Company “B” by Class?

  • Open the accounting preferences.
  • Choose Edit > Preferences.
  • In the Preferences window, click Accounting in the list on the left.
  • Click the Company Preferences tab.
  • Select the Use class tracking checkbox.
  • Click OK.

Related article from QuickBooks:

What is class tracking?

In QuickBooks, you can create classes that you assign to transactions. This lets you track account balances by department, business office or location, separate properties you own, or any other meaningful breakdown of your business.

Many business owners have certain segments of their business that they want to keep a close eye on. By using the class tracking feature, you can define these segments and track their associated account balances on invoices, bills, and other documents.

Businesses with different departments or locations can use classes to report account balances for each department.

For example, if you had a restaurant with three locations, you might create an Uptown, a Midtown, and a Downtown class for tracking account balances by location. A farmer might create a class for each enterprise—for example, Corn, Hogs, and Soybeans. At the end of an accounting period, the restaurant could create separate reports for each location. Likewise, the farmer could create separate reports for each enterprise.

Class tracking reports

The Profit & Loss by Class report shows the profit and loss of each aspect of your business that you track by class in QuickBooks.

The Profit & Loss Unclassified report shows the profit and loss from all transactions that are not classified. You can use this report to identify unclassified transactions in your company file.