01
The challenge
All locations ran through one QuickBooks file. Bay Area transactions were partly untagged and some were not entered at all, and shared costs such as payroll, software and marketing had no allocation rule. The owner needed Bay Area results that would stand up to a buyer, lender or partner.
02
Our approach
- Scope pinned down. We confirmed the Bay Area start date of February 2025, removing two years of work, and separated untagged transactions from missing ones before pricing.
- Three buckets. Every transaction was tagged Bay Area, Shared/Corporate or Texas, with Texas treated as the residual only under written conditions.
- Allocation policy. Shared costs were allocated on drivers such as revenue and headcount, set out in a one-page policy.
- Phased delivery. Tagging, allocation and reporting ran as separate phases, with the option of splitting work across providers costed out in advance.
- Reconciled outputs. The carve-out P&L plus the Texas residual agreed to the company total every month.
03
Results delivered
- Bay Area financial statements that reconcile to the consolidated file.
- A written allocation policy the owner can defend to third parties.
- Location tagging set up so future months report by location automatically.
04
Frequently asked questions
Financial statements for one part of a business, such as a location or division, prepared as if it stood alone, with shared costs allocated on a stated basis.
Turn on location or class tracking and tag every transaction. Shared costs can sit in a corporate location and be allocated at month end.
Use a driver that reflects how the cost is consumed, such as revenue for marketing or headcount for payroll administration, and apply it consistently.
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