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  • #995759
    webservi
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    Hello, I’m looking at starting a business which could be divided and probably better advertised if it were three separate businesses.

    I’m looking at getting all the nitty gritty sorted before starting this venture and latter deciding to change it.

    I’m currently considering accounting and banking, if I do the three separate businesses, I don’t want three lots of tax, banking, billing and accounts everywhere.

    What are everyone’s thoughts on either combining these businesses and running one large business or running a business that I use to quote, invoice, a sign all the billing and banking along with accounts and tax, and run the three other businesses under the main one?

    Has anyone got any other motos or strategies to set up multiple business’s without issues of creating more unnecessary work?

    #1203796
    bb1
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    The one thing you always need to consider is your exit strategy (yeah I know you haven’t started yet), so whatever advise you get, you need to consider that down the track you may want to sell one or more of the 3 business’s. So as such you need to keep the financials in particular as separate as possible, so that a potential buyer can easily see what is from that business. plus it makes it easier to delink it for yourself. Others will give you the best approach, but always keep your exit in mind.

    #1203797
    webservi
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    Thanks for that bb1, so would you suggest to run the 3 as 1 (as they are all closely in the same area anyway) and keep 1 set of financial records, accounts and banking?

    Or keep them separate, and run three lots of records, accounts and banking?

    Or run them all under one set of financial record keeping and separate them in the chart of accounts? I could imagine this could become quite confusing though.

    #1203798
    webservi
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    I’m also chasing a setup that is going to work with me as I, hopefully, expand and even if I were to expand into a completely different industry, I could still use the same setup. Which is why I was thinking of having one entity to handle all of the income, expenses, billing, quoting and invoicing, but this may create for confusion and issues than it could be worth

    #1203799
    webservi
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    And although I’d hate to bombard you with what’s running through my mind, with exit strategy in mind, would you suggest combining these business to make one or is it better to run multiple smaller ones which could be quicker to sell if required?

    #1203800
    bb1
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    webservi, post: 241904, member: 66295 wrote:
    Thanks for that bb1, so would you suggest to run the 3 as 1 (as they are all closely in the same area anyway) and keep 1 set of financial records, accounts and banking?

    Or keep them separate, and run three lots of records, accounts and banking?

    Or run them all under one set of financial record keeping and separate them in the chart of accounts? I could imagine this could become quite confusing though.

    Talk to your accountant, they are the ones who will wack you with a huge bill if you set it up wrong and plan to sell one component later

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