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  • #998769
    bmny
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    Hi everyone,
    This is my first post.
    I am needing some assistance/guidance on how to go about setting up a second/side business.
    I have a partnership business where we are dressmakers, we make custom-made to order wedding dresses/bridesmaid/formal dresses for our clients. We also work on our own collections est.
    We are however wanting to run a small side business for additional income flow. This business isn’t going to use the same business name and I am going to set it up through Etsy as I don’t want to create an additional website.
    I am however very confused that if I have a second business can I link that to our business bank account?
    I have searched google for information and a lot of people suggest having two business bank accounts for each business you have. However as this is only a small/hobby business I was wondering if that could be an exception?
    They will be using the same ABN, just different names. I just want to know if that will affect tax time or when I go see my accountant?
    Any help would be much appreciated

    Thank you

    #1215995
    steve201
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    Hi

    I have this same situation with a client already and i must cuation you to be very thorough from the beginning with your accounting or bookkeeping as it is very simple to become lost by over complicating BOTH businesses.

    I as an accountant would much rather you as the business owner setup a second business bank account with the ability to account for the second business seperate from the first.

    As I gather the second business is NOT a division of the first Id seriously consider a second ABN to help you be accurate in your accounting and bookkeeping.

    Thanks.
    Steven

    #1215996
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to Flying Solo [USER=111390]@bmny[/USER] . It is great to have you!

    Thank you for joining our community and posting today.

    Cheers

    #1215997
    dynamicdomestics
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    If you were operating as a sole trader then keeping both under same ABN etc wouldn’t be as big an issue. But as a partnership, I have to agree with Steve. Separate ABN, bank account and reporting.

    By keeping them separate you don’t artificially inflate the earnings of your primary business. It will also be easier to track profit/loss, which in turn will make it easier for you to make decisions about whether or not to continuing pursuing your side business.

    Who knows, down the track you may wish to merge the two businesses.

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