There are many business cases that prompt a restructure for a business owner. Things like: change in ownership, change in management, financial reasons, operational reasons, business growth, economic downturn or downsizing. Each business structure has different legal, compliance, and tax obligations, so make sure you consult a professional on your obligations before changing your business structure.
In most cases when you change your business structure, you will also have the need to separate your accounting books. This is easily accomplished within Wave.
Here’s how you will want to create a new business profile in your Wave account:
- Login to Wave and click your business name in the top left corner
- Select Manage Your Profile at the bottom of your business menu
- On the new page click Businesses from the left-hand menu
- Click on Add a Business
- Create a new business based on the restructuring
- Click Save
That’s it! To toggle between profiles all you have to is click the business name in the top left corner.
There are numerous benefits to creating a new business within Wave:
- Your accounting books are kept completely separate
- You’re able to discern the different trends in profits, expenses, assets, and liabilities for the two entities
- You are able to gather data for your tax season separately for the two entities
- There’s a chance your accountant will be very pleased (and who doesn’t want to spoil their accountant?)