OK I will try to make this short and hopefully simple to understand so please bear with me.
I work from my boss’s home, She is a real estate investor.
In the beginning… There were 2 businesses we will call them “A” & “B” in the process of becoming one. My boss and her husband are now getting divorced & he got business “A” and she got the business “B”. all accounts to these 2 businesses were cross used between the two, now all bank accounts originally associated with them have been shut down. My Boss has since opened 2 more businesses “C” & “D” in the middle of 2018. Businesses “B”, “C” & “D” now all have their own accounts as well as her separate Personal Acct.
My issues are: all of these accounts and several credit accounts have been cross used for every business as well as personal use. How do I separate things and reconcile each account correctly. I have not found any property management software that can help me direct the charges to each business and place those charges towards the properties within it. I am literally in an hourglass here and my only possible way is everything by hand. I will try to draw out a diagram and see if I can upload it so you can have a visual of my evr growing web of trying to get my boss organized.
Thanks So Much In Advance for Your Help!!!
Sincerely,
Cassie
You are starting new businesses. You should only create a starting balance sheet for each of them.
It’s not a problem of software but of how to split assets, liabilities and equity between them. Since C and D where created only 7 months ago you should better reconcile everything from scratch.
About business B, since they are divorcing the exact situation will be represented in the divorce contract. But maybe you’re asked to do the calculation to be reppresented in the contract. So it’s up to you. But there are only two ways. From scratch (very long work) or with some logical drivers (but you have to find which ones!).
I have only been doing this about a year and am heads and tails above where it was all at in the beginning. I am by no means a certified accountant or bookkeeper I am just the only one that was crazy enough to try to untangle it all, with that being said…You lost me
@Cassie, this really has nothing to do with Manager or how to use it, which is what this forum is for. The situation you describe is (potentially) about misuse of assets of one business by another. The solution will depend on many legal specifics, including the form of organization of all businesses involved, local law, as well as the divorce settlement.
You are going to have to go back to some point in the past where account balances can be agreed to have belonged to designated entities, then reconstruct transactions going forward, keeping track of which transactions were improperly made so restoration and restitution can occur. You can do this in Manager or laboriously with spreadsheets. But you can’t even begin until the parties agree to a legal framework for sorting everything out.
Your avowed lack of accounting experience suggests this is a task best left to the attorneys and their hired minions. Meanwhile, @Davide was right. You started new businesses (C and D) and must keep them separate from anything that went on before. When the legal wrangling is over, you can adjust starting balances for the new businesses in Manager without having to redo any of the transactions entered since you started them.
I thought this was just a forum for assistance, I didn’t realize that it was for a particular software. My sincere apologies for the intrusion and thank you for your help
sincerely,
Cassie