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Adding a Trading As Business

Forum|Forum|3 years ago
September 21, 2022
3 replies
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Hello

We have a QB Online account under the name of our Limited company. We are in the process of setting up another business under the umbrella of our limited company. This would become a Trading As business for example; The Green Man trading as the Blue Lady Ltd

How does this work with invoicing, would we be required to set up two different accounts and if so would this work with the same bank account details? I assume QB would not know which transactions to place into which account.

Any advice would be much appreciated.

Thank you

QuickBooks Online

Best answer by GeorgiaC

Hi JD01234, thanks for your post - a separate QB subscription should be used for each company; you can create the new subscription from our homepage, by selecting Choose plan > Select payroll preferences > see option for 'Already have an Intuit Account? Sign in'. This will link your new account to your existing User ID & password login, so that you'll see both companies listed when signing in, and can easily switch between the two (click the cog in the top corner of QB > switch company). We'll also add this to your regular billing plan, so you'll only be charged once per billing period.

G

GeorgiaCAnswer

Hi JD01234, thanks for your post - a separate QB subscription should be used for each company; you can create the new subscription from our homepage, by selecting Choose plan > Select payroll preferences > see option for 'Already have an Intuit Account? Sign in'. This will link your new account to your existing User ID & password login, so that you'll see both companies listed when signing in, and can easily switch between the two (click the cog in the top corner of QB > switch company). We'll also add this to your regular billing plan, so you'll only be charged once per billing period.

J

JD01234Author

Thanks Georgia

That is what I assumed would be the way forward. How will this work with connecting the bank account to two different accounts - the bank account will be the same for both businesses as it will be trading under our main account.

G

GeorgiaC

Thanks for getting back to me JD01234, it's only possible to have the bank connected to one QBO file at a time, so it would be recommended to import the transactions via CSV into the second QB file. Will you be looking to submit separate VAT returns for each company?

paul72

@JD01234 wrote:
This would become a Trading As business for example; The Green Man trading as the Blue Lady Ltd

Hi @JD01234 , I think you mean the other way around?

Blue Lady Ltd trading as The Green Man.

(the limited company is the whole, the t/a is the subsidiary)

Scanning what you've written above, payments will go in/out of the same bank account & you will be using the same VAT number (if registered) for both side of the business?

So, just use the same QBO account but have a different invoice template for The Green Man.

It is one business after all - just two departments. I don't use them but I think you could use Tags in QBO to distinguish between the two departments - or, if you upgrade, Classes.

Hope this helps.

J

JD01234Author

Hi Paul72

Oops! yes it was the wrong way around (its been one of those days)

Thanks for your input that all makes sense as it would just be the invoices that we would need to differeniate against.

Thannk you!

M

MEED

Hello. Following on from the subject raised in this feed, I have a similar issue. I have the one UK limited company (the parent), but I have two trading divisions that sit under that company. Division A will have the same VAT number as the Limited Company that it sits under, but a different invoice template and a different set of expense codes / categories too; it will also have a Tide sub-account bank account (different account number than the parent Tide Limited Company account number). The same applies for Division B. For VAT assessment purposes, the combined ins and outs of Divisions A and B will be used to make the single VAT return for the parent Limited Company (as they are the same legal entity). My question is, can I do all of the above under the one QB subscription that I have for the parent Limited Company, and how do I set up Division A and Division B, with each division holding their own different set of expense codes / categories? Thanks in advance.

C

Carneil_C

Thanks for joining the thread, @MEED.

I'll chime in and share some information concerning your query about QuickBooks Online.

Regarding this matter, we can follow the suggestion provided by paul72 above. We can use the same QBO account but with a different invoice template. Thus, it's the same business with two separate divisions.

Alternatively, we can utilize Tags in QBO to track things the way you want without affecting your books. Otherwise, you can organise them using class if you currently use the QuickBooks Online Plus version.

Also, you can always contact our QuickBooks Online Support team if you need further assistance. They have equipped tools to have a screen-sharing session with you and guide you throughout the process. Here's how:

Go to the Help (?) and click Contact us.
Enter your question and select Continue.
Review and Select from the following: Ask the community, Have us call you, or Chat with us.

Please ensure to check their available hours to address your queries promptly.

Moreover, I've added these resources that may come in handy in organising your transactions seamlessly in QBO:

Feel free to visit again in the Community, and keep me posted on your progress. I'm determined to help you succeed. Keep safe always.

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