If you run multiple businesses, it’s important that you keep the records of each business accurate. This is not as simple as just using QuickBooks for both businesses.
In today’s episode, Bernard Roesch explains important factors to consider with how to structure multiple businesses within QuickBooks.
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What to Consider with Multiple Businesses in QuickBooks
The first thing to consider is what you need from a management perspective when it comes to your QuickBooks data. For example, if you have a business that has five different restaurant locations and you simply want to report on each location, then you do not need to keep separate QuickBooks files. You can use a single QuickBooks file and log transactions for each restaurant location using different QuickBooks classes. This will enable you to run QuickBooks reports by class to see reporting information about each restaurant location. However, if you need to keep completely separate financials for the different businesses, then you may need different QuickBooks files. For example, if you need to provide full financial statements for partners, investors, or for tax reasons, then it would be best to have two different QuickBooks files. This can become challenging if both companies share common ownership or move money between the business bank accounts. It would be best to consult with a QuickBooks ProAdvisor in this situation to ensure you meet your business needs as well as the needs of your partners, investors, and the government.
Running Multiple Companies in a Single QuickBooks File
The specific process to run your companies in a single QuickBooks file may vary but the key factors are below. First, have separate bank accounts for each business so that you can keep the money separate. Both of these bank accounts will be within QuickBooks but this will make tracking finances of each business easier. Create separate assets and liabilities accounts for each business so that you can track the assets and liabilities for each business separately within QuickBooks. When logging transactions use classes in QuickBooks, also known in other software as departments, to specify which business the transaction is for. This will enable you to run reports for each business separately by class and to keep track of bank accounts, assets, and liabilities for each business all within the same QuickBooks file.
Need Help Configuring Multiple Businesses in QuickBooks?
The process to have multiple businesses within QuickBooks is complex but it’s important to be done right. If you have multiple businesses and want to ensure they’re structured appropriately in QuickBooks, contact Bernard today.