more-arw search

Q&A Forum

Accounting Question

I am looking at the year end and I have a question regarding the business chart of accounts. Considering both entities have 1 tin, but 2 checking account and 2 separate chart of accounts, is it necessary to have a balance sheet line item of due/to from accounts? Or because they are LLC money transferred between accounts would just move through retained earnings? Past companies I have worked for, the 2 or more entities were were incorporated and different tins.

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Not sure what exactly you want to accomplish, but based on what you wrote:

You can't really have two "entities" in the legal sense with 1 TIN. What you have are divisions (or if you like departments) of a company.

You can have as many cash accounts as you want, that is immaterial. What you need to do (and consistently) is to code every entry into the system with the correct divisions/department.

You can then run financials (assuming everything is coded properly) three ways, from the "TIN" pov of view (using your terms), from Entity 1 and Entity 2.

Entity 1 + Entity 2 needs to be equal to the "TIN" pov. If they don't, you didn't code something correctly.

756 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.