If there are two companies that are using the same bank account, which I will have to do two sets of financials for (each company individually), is it fine if I just split the bank statements according to their income and expenses? The two should then balance with the bank statements?
They should rectify this situation as soon as possible, as each company is required to have its own bank account. With regards to recording what has happened to date: If the bank account is in one of the company’s names (e.g. Company A), then bank transactions should be captured in Company A. Any transactions that relate to Company B should be allocated to the inter-company loan account. Income and expenses in Company B should then be captured through the loan account with Company A (e.g. debit loan to/from Company A credit income). The inter-company loan accounts should then balanced at year-end.
If the bank account is in another party’s name, then all income and expenses should be contra’d with the loan account to/from the 3rd party.
Hope that helps!
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