Sometimes businesses are complex, especially when you run two or more legal entities within one larger company, so keeping track of data and expenses for all these entities can be complicated.
For example, a landscaping business might have one company that focuses on design and sales, and another company that provides planting and gardening services. Or, your family business might have an operating company that runs the business, a family trust and a self-managed superannuation fund – three separate legal entities.
Even when a small business seems simple, it is not uncommon for the business to be made up of more than one legal entity. Each of these companies will have their own ABN, income and expenses. Each of these companies will also have their own reporting obligations such as BAS filings and tax returns, and may be required to have their own invoices and bank accounts.
Accounting for such a business can be complicated. You need to make sure each payment the business receives or makes, and all costs, are allocated correctly to each of the legal entities that make up the business, so that the BAS, tax documents and other financial information is correct.
Now you can manage multiple businesses using additional subscriptions to QuickBooks Online. Intuit is offering a 50% discount for additional subscriptions on the Essentials and Plus offers when you purchase two or more subscriptions for two years. This means you can affordably manage a subscription for each separate legal entity without the time-consuming manual sorting of data, complexity of making adjustments to the raw data and risk of making mistakes in your finances.
Having all your data sorted and aligned in each of the legal entities means it’s easier for you to prepare your BAS, manage your invoicing, and track income, expenses and profits incurred for each part of your business. QuickBooks Online also allows you to send quotes and invoices on the go, link in bank and credit card transactions, and manage payroll.
As your business organically grows, it is important to understand the financial health of each part of your business. Having the right information not only eases the administration for each legal entity, but it also allows you to analyse and track how each segment of your business is performing. Better information allows you to make more informed decisions, including where you need to invest time and money.
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