Two entities with same customer base

1

We are operating two entities separately and these are providing services differently to each other but have the same customer base.

For example

Company 1 is providing 3 services and Company 2 is providing 2 services to the same customers. In total there are 5 services.

We want to keep one set of books whereby we can extract separate statements of each Company.

Purpose:
The purpose is to have single customer ledger so we can manage our customers efficiently.

Queries:
(In Case of Single Book having two entities entries):

How this objective can be achieved? Keeping in mind that the both entities have their separate bank accounts and separate partners’ capital account.

I understand that on the P&L side, we may manage income, and expenses through tracking codes but not sure of the balance sheet. For example, we create tracking codes by services, so we will able to manage separate Profit & Loss accounts for each entity. In case of the balance sheet, how we can bifurcate the assets, liabilities, and capital of each entity?

(In Case each company has its own set of accounts):
If we create two separate files for each entity which is the standard and logical way, is there any option whereby we can merge the customers’ receivables in the single statement conveniently?

Thanks

2

Always enter customers in one business and use batch update to copy to the other company regularly.

3

You should not try to manage two separate businesses in one business in Manager - this may not even be legal in some jurisdictions

4

Thanks. I understands that each company should have it’s own separate books. Is there any way we can generate consolidated customer ledger?

5

Export the information required from the two businesses to Excel and combine them there is probably the simplest

1 Like
6

Currently you cannot.

7

Exporting and merging would be cumbersome every time.

8

  • If the companies are separate would you not send separate documentation to the customer

  • If one company is sub contracting the other company the prime company would send all documentation to the customer

So what are you doing this for. Is it every sale or just for customer analysis?

9

Both companies are issuing separate invoices, but we have a single coordinator at client side in most of the cases and so our side.

So we are looking for a solution where we can manage single statement with the dentification of the company name whose invoice is this.

10

@yameen101, when you said you wanted a “single customer ledger,” I initially thought you meant you were looking for a way to combine financial results from two companies for internal review by common management. Now, it appears you want to send something to the customer that is from both companies. That would be highly irregular if, as you said previously, your two companies are separate legal entities. Your tax laws recognize only two parties in any commercial transaction, both with clearly defined roles. You should obtain professional legal and accounting advice about doing such a thing, as it blurs the definition of who is fulfilling which role.

11

Thanks Tut.

12