I have several properties which I keep under 4 LLCs. How to bookkeep one Allstate umbrella policy bill over all 4 LLCs?
I have a client with 5 different properties for rent and they all have their own LLC. But then, there is a management LLC set up – this is where we deposit all money and pay all expenses – we assign each one to a class (we have a class set up for each property).
Each property and LLC has their own QB file also.
At the end of every quarter (could be every month or every year depending on how often you want to see P&L) we 0 out the P&L in the management account (using classes) and hit intercompany accounts for owed by or owed to the other LLCs and then enter them into each LLCs individual file.
So, to clear management account you debit the income, credit the expenses by class so end result is 0. Except for any real “management”expenses which stay on the management LLC.
The sum of all these gets put to either asset or liability based on whether the property had a profit or not.
I’m not sure I explained it all that great – but this way is easier than paying out of/depositing into 5 separate entities.
Contact me if you want and I can try to explain better if this sounds interesting.
I use QBDT, but QBO does offer special packages for this kind of business FYI. We looked into that but ultimately decided to stay with QBDT.
QBO is more expensive in general.
Angela Lyon is the owner of Better Bookkeeping, LLC, providing accounting & bookkeeping services.