I have an LLC which holds two separate DBAs. Each business has its own checking account. Most expenses are distinct, but some, like office space and internet are shared expenses. How can I properly pay for and record these expenses in my books? Is it wise to open an additional checking account specifically for shared expenses?
You could use a monthly reimbursement check (or electronic bank transfer) from one company to another and split it as negative expenses (rebate) per category. For example,
Deposit Withdrawal Account Memo $100 Internet For A and B $500 Rent For A and B $100 Gas/Electric For A and B $350 -- Split -- Reimbursement from Company B Internet $50 Rent $250 Gas/Electric $50
Deposit Withdrawal Account Memo $350 -- Split -- Reimbursement Payment to Company A Internet $50 Rent $250 Gas/Electric $50
Note you don't actually have to do this monthly. You could true it up quarterly or even annually if you wish.