Multiple businesses using one bank account

GlennFGlennF Member Posts: 17

I have more than one rental property and have set each up as it's own "company" for individual P/L reporting. However, they use the same bank account for management. Is there a way to link each "company" to one general bank account in the chart of accounts so the bank balance stays correct?

edited March 27, 2019 in Using Wave

Comments

  • JamieDJamieD Administrator Posts: 1,117 admin

    Hey @GlennF. This is something that's not currently possible in Wave (using the same account across multiple businesses). With that being said, you will need to make sure that you will need to upload your bank statements manually into the other businesses that use the same bank account.

  • CentralOhioCentralOhio Member Posts: 4

    Hello,
    I was wondering the same thing. I'm not a big investor, but what some people did before the digital age was to use the same bank, but have a checking account for each property. This made what GlennF is trying to do easy.

  • thomssithomssi Member Posts: 28

    You could add extra accounts in Wave but to be honest unless there is a good reason not to then open more actual bank accounts. If by linking you mean the uploads are automatic you are going to have a lot of journalling to do and also give your auditors (assuming you have them) a substantial headache..... I'm actually a little surprised your bank is ok with this arrangement.....

  • GlennFGlennF Member Posts: 17

    Opening multiple bank accounts would not only increase workload but you also have to worry about increased fees because of account minimums on each account. That could add up to a lot of fees or thousands in minimum balances.

  • GlennFGlennF Member Posts: 17

    @JamieD I came across this post regarding managing personal transactions. Could we just name a checking account in the Equity>Business Owner Contribution and Drawing under the Chart of Accounts and share it across companies? Basically using a personal transaction in Wave as the one business account so it balances.

    edited October 18, 2019
  • JordanDJordanD Administrator, Moderator Posts: 338 admin

    @GlennF I wouldn't advise doing that. In accounting, Asset and Equity accounts act differently, and while this may seem like a quicker solution, your reporting would be effected, and also the functionality of the account would be different.

  • GlennFGlennF Member Posts: 17

    Thanks for the reply. In testing it isn't linked across companies anyway. The only way I see to make this work is to use the personal account as the business checkbook register but you would have to do a manual entry every time which is not an ideal solution.

  • EmmaPEmmaP Administrator Posts: 270 admin

    Hey @GlennF, there is the manual option @JamieD mentioned to you in the thread above to upload the bank statements into each business. If you want to upload statements there are two methods you can use: 1) Using our CSV uploader.

    2) Wave Connect
    Wave Connect allows you to upload or download transactional data, invoices, customer lists, etc, into a Google spreadsheet.

    edited October 23, 2019
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