Business Accounts

[Bondizzo]

If you have say 5 businesses is it necessary for each business to have its own account or can the money all go to one parent company ?

 

[MadMailMan]

Bank account? Telephone account? Edgars account? Amazon account? What are we talking about here?

 

[Bondizzo]

oh sorry bank accounts.

 

[guest2013-1]

If you have say 5 businesses is it necessary for each business to have its own account or can the money all go to one parent company ?

It depends if the business you're running are branches or not. And how intensely good you are at keeping account of all income and expenses on the 1 account.

If you were running 5 franchises by yourself, I'd say it won't be too difficult to keep count of who spent what and who had which income. It will just become a nightmare in administration to figure out who paid what to who and who gave what money to who.

So having 5 bank accounts might not be a bad idea, especially if all the businesses are independent of each other and not running as a franchise.

You'd also have to consider if you'd like to sell one of these businesses in future. It's easier if the business has it's own bank account, because (AFAIK) you can just change the owner details at the bank without worrying about the business name etc. Might be wrong though.

It's also easier for auditors to go through things. All stems from administrative point of view IMO.

 

[za1]

to answer your question, yes they can all have the same bank account

your bookkeeping though might be a tad difficult, but the simple answer is yes, they can all share one parent account as you put it.

 

[Other Pineapple Smurf]

Agree AZ.

My ex and I had our own small business and kept separate bank accounts. Extra cost was part of doing business. It was really easy to manage the finances and not get confused.

Actually I think running a single account will cost you more in admin alone.

 

[guest2013-1]

Agree AZ.

My ex and I had our own small business and kept separate bank accounts. Extra cost was part of doing business. It was really easy to manage the finances and not get confused.

Actually I think running a single account will cost you more in admin alone.

Might also cost you more in banking fee's... forgot about that...