Managing business books for more than one business is a time-consuming and complex task. However, it is necessary for fast-growing companies. That’s why businesses need a small business bookkeeper to manage business books properly for multiple businesses. Now, the question arises how can you manage bookkeeping for multiple businesses? To know different ways, continue reading this blog.
5 Ways to Manage Bookkeeping for Multiple Businesses
Bookkeeping for more than one business needs to collect the financial data of all entities to create a report and an integrated system. Here are a few ways that small business bookkeepers in Melbourne use to maintain your business books for multiple businesses.
• Create Separate Accounts for Each Business
Many business owners make the mistake of using the same account for all businesses. However, it can create a mess when you have to differentiate between the financial transactions of each legal entity. It can become complex to calculate taxes at the time of tax lodgment. When you choose a bookkeeping service for a small business or more than one business, then bookkeepers will recommend you have separate accounts for each business.
• Forecast and Maintain Cash Flow Across the Businesses
It is necessary to have a single central accountancy function, using the integrated system for all businesses will make it easy to manage cash flow across the businesses. Bookkeepers in Melbourne know how to forecast the cash flow of any business. They forecast cash flow depending on the financial data of the business. Business owners must have separate forecasting and budgeting tasks for all businesses. It helps to assign funds and prepare for the upcoming sales season.
• Provide Accurate Data to Stakeholders
Business data is also used by bookkeepers to address new opportunities and provide financial advice to business owners. Additionally, the business stakeholders need financial data to check their return on investment. The bookkeeping and accounting software helps by maintaining transparency and giving error-free reports.
• Store Data Separately
Since every business is an independent entity, its financial data needs to be stored separately. It is vital to have separate accounts for each business to record financial transactions and store bills, invoices, and tax receipts. They need to have a unique account to track financial transactions accurately. The chart of accounts helps bookkeepers with bank reconciliation to ensure the accuracy of records. It is also helpful in tracking the expenses and income of each business along with taxes and payroll. It helps lodge taxes accurately and claim possible tax deductions.
• Use Multi-Entity Accounting Software
Using automation can help reduce the workload of collecting, recording, and analysing financial data for multiple businesses. That’s why reputable bookkeepers suggest using accounting software to consolidate data from multiple businesses. These systems can help businesses go paperless and efficiently keep track of accounts payable and receivable. Additionally, it can generate financial reports and provide an overview of the parent company’s performance through the consolidation of data. However, it’s important to choose software that can help customise bookkeeping tasks for different entities, regardless of their size and type.
Hire a Professional Bookkeeper to Manage Business Books for Multiple Businesses
When it comes to finance management of all businesses, finding time to manage business finances becomes a challenge. In addition to this, different businesses have unique financial and data processing requirements that can’t be time-consuming if you seek help from a professional bookkeeper for your multiple businesses. Make sure to hire someone with the right qualifications and experience so you can be sure that your business books are in safe hands. If you want to be sure that your business books for all businesses are up to date, make sure to hire an experienced and trustworthy bookkeeper.
Running more than one business under the same brand is beneficial for a business owner. However, managing business books for all businesses can become a complex and time-consuming task. Due to this reason, it is important to seek help from a professional bookkeeper to take care of your business books. Therefore, you can reach a Reliable Bookkeeping Services provider.