How to account for business on the side

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  • Updated 6 days ago
  • (Edited)
I am looking for advice on how to account for a couple of small income producing activities unrelated to the primary business within Reckon One.  

Primary Sole Trader (for arguments sake a Plumber) business is GST registered up and running in Reckon One just fine.  Quarterly BAS extracted using Reckon One. 

Side income
A) from AirBNB renting out a room in my home. No GST here. Expenses and Income to be accounted for as an individual and P/L to show up in annual tax return.
B) Buy and sell several horses each year. P/L declared.

Method One
Add AirBNB and horse sales in income and expense accounts in the standard section in chart of accounts.  As no GST codes included in these accounts it will not effect quarterly BAS apart from the total income field. But would change the P/L of the plumbing business in reports.


Method Two
Place them in "other income" and "other expense" fields so they sit apart at the bottom of the P/L.  I cannot see how to modify and put child accounts on these though and still effect Plumbing business P/L

Method Three
Place them as equity accounts beneath Sole Trader drawing and contributions.  ie
Sole trader drawings: horse purchase
Sole trader contributions: horse Sale
Sole trader drawings: AirBNB expense
Sole trader contributions: AirBNB income

They are then excluded totally from the primary plumbing business P/L reports but can be seen and tallied in Reports > Account Enquiry  by checking only these four accounts two at a time.

Does anyone have suggestion on how to deal with this sort of scenario.  I know I could open totally separate ReckonOne subscription to deal with them.  But as all the money passes through the single bank acc this would be PITA to admin.  I am thinking method three is the way to go. Just have to remember to dig the respective tallies out using custom Account Enquiries. Thoughts?



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Ted

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Posted 1 week ago

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megan

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Have you thought about using class tracking.  You could set up a class for AIRBNB and one for your 
HORSE.  When you are entering transactions just enter the class for that expense or income.  I would not set up one for the plumbing, anything without a class would be plumbing (less data entry).  Reports in Reckon can set to show each class in a separate column. 
 
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Ted

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No I had not thought of that at all. Seems like a good idea. I have managed to find and add a class in the Settings>Classification area. I have added a an expense transaction and assigned it to the class. At this stage is still shows up in reports within the single column with everything else. How do I get Reckon to show the class in a separate column in my P/L report? 
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megan

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At the top of the report there will be a option for columns,  set to class
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megan

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If there is no columns option.  You can always go to modify report and filter by class (one by one)
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Ted

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Judging by your screen shot, you are using a totally different Reckon product that supports Classes properly. My question was in relation to ReckonOne the cloud based offering that opens in a web browser. 

As far as I can ReckonOne only has very rudimentary Classification support. All it well let me do in relation to class is to open a list of customer or supplier transactions (separately) and filter them by class which is useless. No ability to create a Profit Loss report or Account enquiry and filter it by class.    So will ditch that idea and delete the Classes I created. 

For lack of any better solution will go back to using option three above and place these transaction in 
Sole Trader Equity sub accounts. They then show up in a Account enquiry. It is the only way I can see to separate them from the prime business in ReckonOne.  

    
Hi Ted

Yes info supplied previously was for Reckon accounts business range not Reckon one.

I would use option 3, track via equity, if you don't have many transactions then just setup one sub-account for each and then use a report showing the debit & credit columns & balance to give you your mini P&L for each.

If you have more than a few transactions setup header & sub-accounts under equity.

EQUITY
   Drawings - horse sales
            Income - Horse sales
            Expenses - Horse sales
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Ted

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Yep will go with that. 
However the Reckon One reporting is even too rudimentary to fully include what you suggest. The way I see it, I can only pluck out the transactions using the reports called  "Account Enquiry" or "Account List" .   

"Account Enquiry" lets one specify exclusively the child accounts like...
Income - Horse sales
Expenses - Horse sales
It shows Debits, Credits, but it does not report a balance, just subtotals.  Simple enough to tally the two amounts though.

"Account List" does display a balance, but it is zero and not tallying properly.

Drawings - horse sales       3-0400EquityActive-$0.00   
     Horse Purchase
             3-0210EquityActive-$5,700.00   
     Horse Sale
                     3-0310EquityActive$37,290.00
                                                                             TOTAL $0.00

Ideally it would tally correctly and show total as $31,590


Anyhow I can live without the totals. Main thing is I can separate them out form the plumbing business.
(Edited)
You are right, it is painful, but you could run the full account list report, export to csv/excel then quickly delete all the unwanted account lines leaving just the other entities, then add an autosum column/s
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Ted

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Actually I got it to work. It displays with a balance for each of my sub sections at the bottom of the balance sheet report. Example below using dummy data. I added the green boxes for clarity.  This should be adequate for my needs.  



Thank you for all the help an suggestions.
You are most welcome, glad I could help R1 is not my favorite or preferred!!!!  And I only use it for one client