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Level 2
July 8, 2020
Question

If a client with multiple SMLLCs (A,B and C). It seems that A pays some of the expenses for B. How do I record the expenses?

  • July 8, 2020
  • 1 reply
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If a client with multiple SMLLCs (A,B and C). It seems that A pays some of the expenses for B. How do I record the expenses? A has no income but B has income and B has income and hardly any expenses

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1 reply

qbteachmt
Level 15
July 8, 2020

A didn't pay for B. The Owner put funds into B and took a draw from A. You record the expenses for the entity that benefited from that expense and for the entity that was on the hook for it, because that is where the expense belongs. Don't confuse Banking with Expense.

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