Multi-Entity Financial Management

Overview

Wilson Tools Used

• transaction_search

  — query transactions filtered by entity (using account, tag, or category prefix) to isolate each business

• spending_summary

  — generate per-entity spending summaries for comparison

• export_transactions

  — export entity-specific transaction sets for accountants or tax filing

Workflow

1. Ask the user to define their entities and how they are separated (separate bank accounts, category prefixes, tags, or description patterns).
2. For each entity, use

   transaction_search

   with the appropriate filter:
   • By account: search transactions from the specific bank account
   • By tag/prefix: search for transactions tagged or prefixed with the entity name (e.g., "LLC1:" or "rental:")
3. Use

   spending_summary

   for each entity over the same period.
4. Generate per-entity P&L summaries plus a consolidated view:

MULTI-ENTITY SUMMARY — [Period]
═══════════════════════════════════════════════════════
                    Entity A    Entity B    Consolidated
                    (Consulting) (SaaS)
───────────────────────────────────────────────────────
Revenue              $45,000     $22,000       $67,000
Expenses            ($28,000)   ($18,000)     ($46,000)
Net Income           $17,000      $4,000       $21,000
Net Margin             37.8%       18.2%         31.3%

Cash Balance         $32,000     $14,000       $46,000
───────────────────────────────────────────────────────
Inter-Entity Transfers: $2,500 (A → B)
═══════════════════════════════════════════════════════

1. Flag any inter-entity transfers (payments between your own accounts/entities) and exclude them from revenue and expense totals to avoid double-counting.
2. Use

   export_transactions

   to create separate CSV files per entity for tax preparation.
3. Alert on commingling: flag personal expenses in business accounts or business expenses in personal accounts.

Without Wilson

1. If each entity has a separate bank account (recommended), export each account's transactions as a separate CSV file.
2. If entities share a bank account (not recommended but common), export all transactions and add an "Entity" column. Tag each transaction manually.
3. Create separate spreadsheet tabs per entity. For each: pivot by category, sum income and expenses.
4. For the consolidated view, create a summary tab that references each entity tab:

   =EntityA!TotalRevenue + EntityB!TotalRevenue

   .
5. Track inter-entity transfers: search for transfers between your accounts. Mark these as "Transfer" category and exclude from income/expense totals.
6. For tax filing, each entity files separately. LLCs file Schedule C (single-member) or Form 1065 (multi-member). S-corps file Form 1120-S. Keep transaction exports separated by EIN.
7. Use separate QuickBooks files or Xero organizations per entity. QBO allows up to 25 companies per subscription.

Important Notes

• Separate bank accounts per entity is strongly recommended. Commingling funds can pierce the corporate veil and remove liability protection.
• Inter-entity transactions (loans, payments, shared expenses) must be tracked carefully. They are not income or expenses — they are transfers.
• If one entity pays a shared expense (e.g., office rent), split it proportionally and record an inter-entity receivable/payable.
• Each entity should have its own EIN. Do not use one EIN for multiple entities.
• Consult a CPA for multi-entity tax strategy. Entity structure (LLC, S-corp, C-corp) significantly affects tax liability.