Need advice on whether I should setup seperate QB companies and have seperate bank accounts. for 2 small business and seperate personal account -vs- using a single company file to handle all accounts that i have, and sort categories/data for tax filing.
business 1 brings in 50k/yr. Business 2 brings in 10k.
Thanks!
Ok, well if both businesses are seprate means two different kinds, then you need to file tax separately for each business and need separate company file. If so:
Open two companies in the Quickbooks, (steps to open another company: open quickbooks and click "file" from the top and then select "new company" and follow the steps)
Also open separate bank account for each business and personal stuff. Don't comingle them with personal and all business together.
Suppose, if one company goes under audit, then it will be confusing and time consuming for you to answer IRS question, and it can trigger more issues with IRS.
If the business are same, but you have two locations, then you can have one company in Quickbooks, and you can open classes in quickbooks to keep track of each locaiton. (how to work with classes, go to quickbooks and help, then write classes in search bar, it will give you all instructions).
If this is the answer pl click solved, or thumbs up if its help.
