Hi, We have been renting our premises for a number of years and now have purchased it. Can I set up a 2nd company/entity & charge /receive rent from the original company easily - like transferring? Or do i need to enter everything in separately? thank you in advance for any help. Laurie
We do something like this with inter company loans and management fees all the time. Rent is likely to be a regular monthly amount. So all you do is set up a recurring invoice in the building company and set up a recurring bill in the business being charged.
You do though have to physically pay the bill and record the payment though as otherwise GST get stuffed up. Even if you have to do one-off invoices and bills it doesn't really take that long.