Multi-Entity Setup
Nick Houldsworth
8m
00:00
Intro to Multi-Entity
00:55
Setting Up Entities
01:36
Customizing Charts
02:22
Transaction Coding
03:15
Splitting Transactions
04:19
Personal Spending
04:59
Reporting
05:42
GST and Fixed Assets
06:20
Under the Hood & Feedback
Transcription unavailable
- WAwarren·1mo ago00:05[...]Hi NIck, what was the motivation behind this functionality? Separate legal entities would normally have their own bank accounts. A Trust may for example have multiple activities. So separate P&L for each activity would be good, but as a Trust is still only one entity, it's activities would still all need to be consolidated into a full P&L as well. Perhaps this is mainly for processing credit card transactions?Nick Houldsworth·1mo agoHi Warren We've taken a lot of feedback from accountants and bookkeepers using Xero about how/why they use tracking categories, and compared requirements to some novel implemntations of multi entity features we've seen in other ledgers overseas and decided to start with multi-entity automation first. Tracking categories remains on our roadmap too (for example in complex businesses they often process inter-entity AND tracking categories together We started here because our product is popular for tax prep for sole traders and rental properties (esp residential) In these cases, tracking categories are often used in Xero to handle mixed use bank transactions, so for example - Several residential rental properties running of a single bank account (or several mixed use accounts) - Or sole traders who have a mix of consulting income and spend + a rental property. We agree, single entity <> dedicated bank account is the best structure, but not all clients/scenarios have been implemented this way, and so tracking categories in Xero have been used to workaround this. Multi entity / automated inter-entity offers another approach, and also opens up the door to more complex setups as well. We will also be able to use this feature to add personal entities for automating things like owner / shareholder cash movements (regardless of how many entities they are connected to). Its not required to use a holding entity for bank accounts, you can have multiple entities in Prosaic with or without bank accounts each, and still use inter-entity automation between them (eg for cash transfers, or payments for one entity that belong to another) Tracking categories may work better for the trust scenario, which is why they're still on the roadmap. But you could also use this feature for that scenario too, treat each entity like a sub-group for specific activities of the trust, the consolidate P&L at year-end. Happy to chat more if you want to drop me a line at [email protected]
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