There are many changes that might prompt you to restructure the way you run your business, such as a change in ownership, change in management, financial or operational reasons, business growth, and an 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 need to separate your accounting books. This is easily accomplished within Wave.
Here’s how to create a new business profile in your Wave account:
- Sign in to your Wave account in your web browser
- Click your business name in the top right corner.
- Select Profile settings from the drop-down menu.
- On the new page, click Businesses from the Profile menu.
- Click the Create a Business button.
- 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 right 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're 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?)