Manage Multiple Companies on QuickBooks Online: A Complete Guide

1. Setting up multiple companies

• Sign up for QuickBooks Online: If you haven't already, sign up for a QuickBooks Online account. You can choose the appropriate subscription plan based on the number of companies you need to manage. 

• Add a new company: From your QuickBooks Online dashboard, navigate to the company menu and select "Add a new company." Follow the prompts such as company name, contact details, industry type, and business structure to provide the necessary information for each company.

• Customize settings: Customize the settings for each company, including company name, contact information, fiscal year, accounting method, and chart of accounts. 

• Setting up preferences and templates: QBO allows you to set preferences and templates for each company individually. Preferences include settings for invoice customization, payment terms, sales tax, and more. Utilize templates for invoices, estimates, purchase orders, and other forms to maintain consistency and branding across your companies. 

• Importing existing data: If you have existing financial data for each company, you can choose to import it into QBO. Prepare the data in a compatible format (such as CSV or Excel) and use QuickBooks Online's import feature to bring in your existing transactions, customer/vendor lists, and other relevant data. This can help expedite the setup process and ensure historical data is accurately recorded. 

2. Navigating between companies

• Dashboard dropdown: From the QuickBooks Online dashboard, click on the dropdown menu at the top left corner of the screen to reveal a list of your added company profiles. Select the company you want to work on to switch to that company's data. 

• Open a new tab: Alternatively, you can open multiple tabs in your browser and have each company's QuickBooks Online account open in a separate tab. This allows you to work on multiple companies simultaneously. 

• Keyboard shortcuts: QuickBooks Online offers keyboard shortcuts that can speed up the navigation process. Commonly used shortcuts are Ctrl+Alt+Right Arrow (Windows) or Command+Option+Right Arrow (Mac) to switch to the next company, and Ctrl+Alt+Left Arrow (Windows) or Command+Option+Left Arrow (Mac) to switch to the previous company. 

3. Managing transactions

• Set up separate bank accounts: It is essential to set up separate bank accounts for each company. This ensures that transactions are properly attributed to the respective companies and simplifies the reconciliation process.

• Categorize transactions correctly: QuickBooks Online allows you to assign transactions to specific accounts and classes, making it easier to differentiate between companies. Ensure that each transaction is categorized correctly for the respective company to maintainaccurate financial records.

• Utilize bank rules: QBO's bank rules feature can be a real time-saver when managing multiple companies. By creating bank rules, you can automate the categorization of transactions based on predefined criteria. For example, you can set rules to automatically categorize transactions from specific vendors or with certain keywords. This saves time and ensures consistency across multiple companies. 

• Reconcile accounts regularly: Set aside dedicated time to reconcile accounts for each company individually. This process helps identify discrepancies, catch errors, and ensure that all transactions are accounted for. QuickBooks Online provides a streamlined reconciliation process, allowing you to match transactions and resolve discrepancies efficiently.

• Tracking expenses and income separately: It is essential to track expenses and income separately for each company. QuickBooks Online allows you to set up different accounts and categories to track these transactions accurately. By maintaining separate records, you can generate accurate profit and loss statements and gain insights into the financial performance of each company.

• f. Using batch transactions: QuickBooks Online offers a feature called "batch transactions" that allows you to enter multiple transactions simultaneously. This feature can be particularly helpful when dealing with recurring transactions, such as monthly bills or payroll entries. By leveraging batch transactions, you can save time and streamline data entry for multiple companies.

4. Reporting and analysis

• Customizing reports for individual companies: QBO Online provides customizable reporting options that allow you to generate reports specific to the needs of each company. You can customize filters, columns, and date ranges to focus on relevant data. Tailor reports to showcase key metrics and performance indicators unique to each company, such as sales by product line or departmental expenses.

• Performing comparative analysis: One of the significant advantages of managing multiple companies on QuickBooks Online is the ability to perform comparative analysis. Use this feature to compare the financial data of different companies side by side. Comparative analysis helps identify trends, spot differences, and make informed comparisons between the companies. You can easily assess which company is performing better in terms of revenue, expenses, profitability, and other key metrics.

• Setting up scheduled reports: QuickBooks Online allows you to set up scheduled reports to receive regular updates on the financial performance of each company. This feature eliminates the need for manual report generation and ensures that you stay up-to-date with the financial health of each company. You can choose the frequency and recipients for scheduled reports, ensuring that the right stakeholders receive the necessary information in a timely manner.

• Creating visual dashboards: Visual dashboards provide a snapshot of key financial metrics and performance indicators in an easily digestible format. QuickBooks Online offers customizable dashboard features that allow you to create visual representations of data specific to each company. Utilize graphs, charts, and widgets to highlight important trends, financial ratios, or key performance indicators (KPIs) for each company.

• Exporting and sharing reports: QuickBooks Online allows you to export reports in various formats, such as PDF or Excel, for further analysis or sharing with stakeholders. You can also share reports directly from the QuickBooks Online platform with specific users or groups, ensuring the right information reaches the right people.

5. User access and permissions:

• User roles: QuickBooks Online offers various user roles, such as Administrator, Accountant, and Custom roles. Assign user roles based on the responsibilities and access levels required for each team member. This ensures that users have the necessary permissions to perform their tasks without compromising sensitive information.

• User access to companies: Grant access to specific companies for each user based on their role and responsibilities. Restrict access to confidential information and financial records.

• Data security: To protect sensitive financial data, implement data security measures within QuickBooks Online. This includes using strong passwords, enabling two-factor authentication, and regularly reviewing user access to ensure it aligns with the current needs of your business. 

Common challenges CPAs face when managing multiple companies

• User access and permissions: Managing user access and permissions for multiple companies can be complex. CPAs need to ensure that team members have the appropriate level of access to the relevant company profiles.

• Data security and backup: CPAs managing multiple companies on QBO need to ensure the security and backup of their financial data. Loss or corruption of data can be detrimental to the operations of multiple businesses.

• Streamlined multi-company management: CPAs often face challenges when navigating and managing multiple company profiles on QBO. Switching between different companies and keeping track of each entity's financial data can be time-consuming and prone to errors.

• Data integrity and accuracy: Maintaining data integrity and accuracy is crucial for CPAs managing multiple companies. Ensuring that each company's financial data is correctly recorded, categorized, and reconciled can be demanding.

• Compliance: CPAs managing multiple companies need to comply with various regulatory requirements and be prepared for audits.

• Data import/export challenges: When managing multiple companies, you may need to import or export data between company files. Ensure data is transferred accurately and take caution to map data fields correctly. Review imported/exported data to confirm accuracy. Click here to learn more about how you can effectively export QuickBooks Online data.

Best practices for managing multiple companies

• Keeping company files organized: Maintain a clear and organized structure for your company files within QuickBooks Online. Use meaningful names and labels for each company profile, and establish a consistent naming convention for accounts, classes, and other entities. This helps ensure easy navigation and accurate record-keeping across multiple companies.

• Maintaining consistent chart of accounts and lists: Establish a standardized chart of accounts and lists (such as customer, vendor, and item lists) across all your companies. Consistency in these areas simplifies data entry, enhances reporting accuracy, and promotes better financial analysis and comparison between companies.

• Regularly reconciling accounts and performing audits: Perform regular reconciliations of bank and credit card accounts for each company to ensure accurate financial records. Regularly reviewing and auditing transactions and accounts helps identify and rectify errors or discrepancies promptly. It also improves the overall integrity of your financial data.

• Exploring third-party integrations and add-ons: QuickBooks Online integrates a wide range of third-party applications and add-ons that can further enhance your multi-company management process. Explore available integrations for functions like inventory management, time tracking, project management, data backup and more. These integrations can streamline workflows and provide additional functionality as per your specific requirements.

• Using the QuickBooks Online accountant platform: if you are an accounting professional serving multiple clients, consider utilizing the QuickBooks Online Accountant platform. This specialized platform offers additional features and resources tailored to the needs of accounting professionals managing multiple clients or companies.

• Data security and backup: protecting the security of your financial data is paramount when managing multiple companies. Implement a comprehensive data security strategy that includes regular backups and proactive measures.

Key benefits of using SysCloud for QBO

• One-stop backup solution: SysCloud allows you to back up multiple QuickBooks Online companies in a single account. This simplifies the process of backing up and restoring your financial data across multiple entities. It’s a one-stop solution for businesses with multiple QBO companies. 

• Seamless data backup: SysCloud automatically backs up your QBO data regularly, ensuring all your financial data, including invoices, customer details, reports, and other essential information, are safe and retrievable. 

• Efficient data recovery: In case of data loss, SysCloud enables you to quickly restore your financial data directly back to QBO, minimizing downtime and ensuring business continuity. 

• Advanced security measures: SysCloud incorporates advanced encryption techniques, ensuring your sensitive financial data is secure during backup and recovery. 

• Compliance adherence: SysCloud helps you stay compliant with major industry regulations like GDPR and HIPAA by maintaining audit trails and providing data governance capabilities. 

Frequently asked questions

• Can QuickBooks Online be used for multiple businesses?

  Yes, QuickBooks Online can be used for multiple businesses. You can have multiple companies under the same QuickBooks Online account, with each company file requiring its own paid subscription. However, you can access all the companies using the same sign-in information, allowing you to conveniently switch between companies and manage them more efficiently within the QuickBooks Online platform.

• How do I open a second company in QuickBooks Online? 

  Follow these steps to set up a second company in QuickBooks Online.

• How many companies can you have in QuickBooks Online? 

  QuickBooks Online currently has a limit of 99 companies that can be set up under a single account. Each company file will have its own subscription and associated costs. However, you can access and manage these 99 companies using the same sign-in credentials, allowing for efficient multi-company management within the QuickBooks Online platform. 

• Is it possible to merge data between different company files in QuickBooks Online? 

  No, QuickBooks Online does not have a built-in feature to merge data between different company files. Each company file is treated as a separate entity with its own data. If data consolidation is required, it is recommended to seek professional assistance or explore third-party integration options. 

• How can I manage user access and permissions for multiple companies on QuickBooks Online? 

  QuickBooks Online offers user management capabilities that allow you to control user access and permissions for each company. Click here to learn more. 

• Can I switch between different subscription levels for each company in QuickBooks Online? 

  Yes, you can have different subscription levels for each company within your QuickBooks Online account. Click here to learn more.