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grantlisa-brydon
Level 2

Changing Business Structure

Our business will be changing on the 1st July 2022 from operating as a sole trader to a Company, registered for GST and PAYG and there will be two Directors.  We have a new ABN and bank account details.  Can we just update this in the file we use now or will this create a problem with the information the ATO has on file? The business description is still the same. Will a new quickbooks file need to be started? 

Solved
Best answer July 01, 2022

Best Answers
IntuitAika
Intuit

Changing Business Structure

Hi grantlisa-brydon,

 

Allow me to join the thread. I would recommend to consult an accountant to confirm if the previous purchases needs to be recorded on the new file and lodged on your new ABN. This is to ensure that the details or data on your tax reporting are accurate.  

 

Feel free to drop a comment below if you need further assistance. Have a great day!  

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5 Comments 5
IntuitSheila
Level 8

Changing Business Structure

Hello there, grantlisa-brydon,

 

Thanks for posting in the Community! In QuickBooks Online one subscription is good for one ABN number only. Since your business structure changes and you have a new ABN number, it is best to sign up for a new QuickBooks Online account. That way you'll not mix up your tax forms and numbers, and the ATO will know that you're submitting your GST and PAYG for the new ABN number.

 

You can open this link and choose the plan you want to subscribe: https://quickbooks.intuit.com/au/pricing/

 

Feel free to post again in the Community if you have more questions. I'll be around to assist you.

grantlisa-brydon
Level 2

Changing Business Structure

Hi Sheila,
Thank you for the information. If I update our ABN etc in the profile I use now will that affect the KeyPay ID used for payroll? Or will it automatically apply the changes and lodge our new ABN and business details? It just seems like a lot of mucking around for me to set up all my chart of accounts again and I would be paying for 2 subscriptions but only using one. I understand it makes sense to create a new profile and have asked my accountant as I'm worried it may affect any amendments that need to be done to BAS for this financial year??
IntuitSheila
Level 8

Changing Business Structure

Hi grantlisa-bryon, 

 

If you'll update the ABN in QuickBooks Online and Payroll Settings it will affect the lodgement and to avoid any mess up on your reporting. The ABN number in payroll settings does not update automatically not unless you edit the information. 

 

It's always best to sign up for a new QuickBooks Online subscription for the new ABN number, and then cancel the existing one once you've done all the BAS and STP lodgement. Before canceling the current account you can export data and reports for your backup and copy. You can still access the canceled account within 1 year from the cancellation date. That way, you'll only be paying one subscription moving forward.

 

You can also contact our Customer Care Team or your accountant if you have more questions about QuickBooks Online. Post again in the Community if you have questions. Have a great day!

 

grantlisa-brydon
Level 2

Changing Business Structure

Thank you Sheila, I have set up a new profile 😊 Do you happen to know if I need to transfer our debts we have with finance companies for vehicles and machines to the new profile? These were purchased under the old business when it was trading as a sole trader. I'm not sure if I need to add these to the motor vehicle at cost fixed assets? We have updated our bank details with the finance companies but technically speaking they are still in the name of the old business/my husbands name as it is easier that way and we don't have to muck around with refinancing.
IntuitAika
Intuit

Changing Business Structure

Hi grantlisa-brydon,

 

Allow me to join the thread. I would recommend to consult an accountant to confirm if the previous purchases needs to be recorded on the new file and lodged on your new ABN. This is to ensure that the details or data on your tax reporting are accurate.  

 

Feel free to drop a comment below if you need further assistance. Have a great day!