𝐀𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐠𝐫𝐨𝐰, 𝐬𝐨 𝐝𝐨 𝐭𝐡𝐞 𝐞𝐧𝐭𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐥𝐢𝐧𝐞𝐬 𝐨𝐟 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬 – 𝐭𝐡𝐢𝐬 𝐠𝐫𝐨𝐰𝐭𝐡 𝐜𝐫𝐞𝐚𝐭𝐞𝐬 𝐢𝐧𝐭𝐞𝐫-𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠.

 

Many businesses choose to consolidate, add or create LLCs to meet various needs or products and services that are offered. Often times these additions can create a routine accounting function called inter-company accounting.

While many business owners are focused on money flowing in and out of the company, only the accountant is truly concerned about the inter-company accounting because sometimes it can be a real challenge.

If you are struggling to manage your firm’s inter-company accounting then the answer you seek lies within Tradition Accounting’s product package. This type of function is serious, complex and when left unmanaged it can create exposed liability to the LLC. Many in-house bookkeepers will simply record the transactions as a due to/due from or some other incorrect method of recognition.

What many business owners fail to realize is those due to/due from will never get zeroed out and will go on forever.

Many expenses are often shared between each entity – staff, equipment, and office space to name a few. The proper way to move cash between each entity is to create an invoice for the allocation of shared expenses.