How we think about holding companies
Once a business has more than one company, the bookkeeping is no longer about a single set of books. It is about keeping several sets in step, so a loan recorded in one appears in the other, and the owner can see the whole picture without adding it up by hand.
In Langley this often looks like a family farm or a trades business that has done well. The operating company runs the work, a holding company owns the land, the shop, or the equipment and rents it back, and sometimes a second operating company starts on the same property. It is a sensible setup that becomes hard to follow without monthly upkeep.
What makes the books different
- Every entity reconciled. Each company has its own file, bank accounts, and close, done in the same week.
- Intercompany loans and rent. Rent paid by the operating company to the holding company, management fees, and loans between them are recorded on both sides and agreed every month.
- Land held separately. Property owned by the holding company carries its own mortgage, property tax, and improvements, kept apart from the operating business.
- Shareholder accounts. Money the owner takes out or puts in is tracked by company, so your CPA can plan salary and dividends from accurate balances.
What a monthly close looks like for you
You send anything that moved between the companies, along with the usual statements and bills. We close each company, match the intercompany balances, and produce a short summary across the group. By the 10th you can see each company and the total.
Tools we commonly use for holding company clients
A separate QuickBooks Online or Xero file for each company, with matching account codes so the group can be read together. Dext for receipts. Reporting across files is built in a spreadsheet or a reporting add-on, depending on how many companies there are.
Partners we work with
We work with CPAs who handle corporate reorganisations and family business planning, corporate lawyers, and agricultural or commercial lenders. Partners are described by type, not by name.
A good fit if
- You run your business through two or more companies, often with a holding company owning property
- You lend money or charge rent between your companies
- You want each company and the group as a whole, reconciled every month