one file but two businesses

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Alison_7809689
Alison_7809689 Member Posts: 9 ✭
edited July 2020 in Accounts Hosted

I have a company that runs two businesses through it.  Is their a way to allocate expenses and income to the separate businesses.  We only have one bank account but we want to be able to allocate to the business when we pay an expense or create a bill.  Is this possible with Reckon Hosted


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  • gazza73
    gazza73 Accredited Partner Posts: 803 Accredited Partner Accredited Partner
    edited February 2017
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    Alison  

    I'm going to answer this assuming you only have to prepare one set of ATO, tax, GST, BAS, Payrol Tax returns and the like.  Otherwise, if they have to provide sparate external reporting,  you really need two sets of books.

    There are a couple of ways, depending on whether you separately ALSO want to track business by client/job as well.

    There is the Chart of Accounts approach,  where you treat the two business as as cost centres, or division.  IE:  You set up a dedicaated set of sales, COGS and expenses for each separate buysiness, and therefore track the separate activities. Selective reporting can even permit you to prepare two sets of P&L!

    The nicer way, though, would be to use CLASSES and again,  allocate all income or expenses to a CLASS (one for each firm).  Again, not ideal, but workable.

    Call me to explain the ramifications..

    Gary Pope
    m: 0408994799 
    An Accredited Partner- Consultant (VIC. Aust)
    http://www.alchester.com.au/reckon-ac...
    "Working with Accountants/Bookkeepers PPs/APs, as an
    independent IT Professional and retired FCPA Accountant"


  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
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    Hi Alison.  For what you want to do, there is a very simple solution.  You need to use Classes.  Go to Edit> Preferences> Accounting - third item down, tick the box "Use Class Tracking" and underneath that tick the box "Prompt to Assign Classes".  Every time then that you do to record a transaction, you will be requested to assign a "Class" to one of the new fields in your transactions..  You can name them whatever you like to differentiate the two companies e.g "Alison" and "Barbie".  Using this method that I have said, you will also be prompted to assign a class for an asset or liability account, if it is part of the entry, but you can ignore this because Classes only work with Income and Expenditure items.  Then you can run whatever P&L etc reports that you want and specify that you want them to report by Class.e.g. Reports> Company & Financial> Profit and Loss by Class.  You can hardly have it any easier!!   I am assuming that the two businesses share the same ABN, otherwise things could get somewhat complicated. John L G

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