QuickBooks - Accounting

[Mary Ciccarelli]

My team and I recently created an LLC and are in the process of securing 2 deals that will be owned 50% by our LLC and 50% my our partners' LLC. How should we go about recording data in QuickBooks. Do we both record 50% in our own separate QuickBook accounts or do we need a joint account now??

(It’s also on the docket to create a QB account so please excuse me if this is a silly question as I’m not knowledgeable on the platform yet!)

[Kristen Ambrose]

@Mary Ciccarelli You actually do not need 2 QBO subscriptions to do the bookkeeping for all of your deals even if you have a separate partner on each one. The only reason you may need another subscription is if your partner wants access to the subscription and you don't feel comfortable with them seeing the other deal info. 

The way to do this is to purchase the Plus subscription of QBO and use the Business field for each of the different LLCs and the class field for each property. That way you can easily run reports for each deal and/or business separately. How this usually works in practice is that one partner owns the bookkeeping process and distributes monthly financial and rehab reports to the other partner so that they're both in the loop without the other partner having to log into QBO. 

Income Digs has a great course on how to do your own bookkeeping in QBO and there's a lesson on how to use the business and class fields for investors that have many LLCs.