Multiple Businesses (Sole proprietor, will not be incorporating and don't plan too)

hj527hj527 Member Posts: 2

Hi, I was looking for suggestions on whether or not I should open multiple accounts for the different services I provide or make 1 general one.

Currently I provide 3 non related business services however I receive my payments in 1 bank account and most expenses are on 1 credit card as well. Typically expenses are shared between all businesses (example: bought a new laptop and it is used for each business), however expenses such as gas charges are only related to one of the services.

Should I make a Wave business account for each of the services or just group them under 1 account?

According to CRA, when filing the T2125 Statement of Business or Professional Activities, a separate form for each business type needs to be filled out.

Suggestions would be greatly appreciated!

Thanks

Comments

  • GoodAccountingGoodAccounting Member Posts: 30

    @hj527
    I am not a moderator. Just a user like you. I have chosen to create a different account for each business i manage. I currently have 4. Some are LLC'd, some are not. One LLC owns multiple property. I have found separate accounts for each to be very helpful as you cannot create sub accounts in WAVE as you can in QBO.

    If you are firm on keeping one bank account, then you can create 3 Income accounts (one for each business) and separate expense accounts for each business. This way the PNL shows figures for each business, but the total would be for the 3 businesses combined.

    Your situation is tricky. I would be comfortable doing same or separate accounts, but each requires some extra work & customization.

  • hj527hj527 Member Posts: 2

    Thanks for the insight!

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