Bookkeeping Advice Needed

Posted by news.sbcglobal.net on September 24, 2006, 12:55 pm

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A continuation of my previous post (How to book the purchase of an existing
business)...

My existing business purchased another business (in the same industry) at
another location. We are not operating two stores instead of one. Should I
create a new company for the second store (even though it is under the same
ownership as the first store) or should I use classes to differentiate
between the two? These are the two ideas I came up with but if there are
others, I'd be glad to hear 'em.

Thanks!

Posted by Joanne on September 24, 2006, 1:10 pm

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>A continuation of my previous post (How to book the purchase of an existing

>business)...

> My existing business purchased another business (in the same industry) at

> another location. We are not operating two stores instead of one. Should

> I create a new company for the second store (even though it is under the

> same ownership as the first store) or should I use classes to

> differentiate between the two? These are the two ideas I came up with but

> if there are others, I'd be glad to hear 'em.

> Thanks!

I think you are saying that you are "NOW operating two stores" rather than
"NOT operating two stores".

Personally, I would keep one set of books and use classes for each store.

--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

http://www.jobird.com

Posted by Allan Martin on September 24, 2006, 2:15 pm

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>>A continuation of my previous post (How to book the purchase of an

>>existing business)...

>> My existing business purchased another business (in the same industry) at

>> another location. We are not operating two stores instead of one.

>> Should I create a new company for the second store (even though it is

>> under the same ownership as the first store) or should I use classes to

>> differentiate between the two? These are the two ideas I came up with

>> but if there are others, I'd be glad to hear 'em.

>> Thanks!

> I think you are saying that you are "NOW operating two stores" rather than

> "NOT operating two stores".

> Personally, I would keep one set of books and use classes for each store.

Personally, I would restate the question in a manner that is understandable
rather than have others guess what is going on.

> --

> Sincerely,

> Joanne

> If it's right for you, then it's right, . . . . . for you!!!

> http://www.jobird.com

Posted by news.sbcglobal.net on September 24, 2006, 2:48 pm

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Sorry for the typo...it was meant to be "now" rather than "not"

I appreciate the advice. Thanks again!

>>>A continuation of my previous post (How to book the purchase of an

>>>existing business)...

>>>

>>> My existing business purchased another business (in the same industry)

>>> at another location. We are not operating two stores instead of one.

>>> Should I create a new company for the second store (even though it is

>>> under the same ownership as the first store) or should I use classes to

>>> differentiate between the two? These are the two ideas I came up with

>>> but if there are others, I'd be glad to hear 'em.

>>>

>>> Thanks!

>> I think you are saying that you are "NOW operating two stores" rather

>> than "NOT operating two stores".

>> Personally, I would keep one set of books and use classes for each store.

> Personally, I would restate the question in a manner that is

> understandable rather than have others guess what is going on.

>> --

>> Sincerely,

>> Joanne

>> If it's right for you, then it's right, . . . . . for you!!!

>> http://www.jobird.com

Posted by Laura on September 24, 2006, 2:51 pm

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>A continuation of my previous post (How to book the purchase of an existing

>business)...

> My existing business purchased another business (in the same industry) at

> another location. We are not operating two stores instead of one. Should

> I create a new company for the second store (even though it is under the

> same ownership as the first store) or should I use classes to

> differentiate between the two? These are the two ideas I came up with but

> if there are others, I'd be glad to hear 'em.

> Thanks!

If you are operating under the same FEIN then I believe that the IRS expects
you to have 1 company file. Your idea of using Classes to distinquish the 2
stores is a good one. Just be aware that classes will only work on your
income statement accounts. If you need to distinquish between the 2 stores
on your balance sheet then you need to set up separate accounts to
accomplish this. Use a Parent account with sub-accounts for each location.