How does invoicing and bank transactions work with an additional company?

If you set up an additional company in QuickBooks Online, you are creating a completely separate data file. QuickBooks Online does not share data or transactions between different company files.

Here is how this affects your workflow:

• Invoicing: You must log in to the specific company file to create an invoice for that business. You cannot send an invoice from one company file on behalf of the other.
• Bank Transactions: You cannot connect a single bank account to multiple company files. You must use separate bank accounts for each company. If you use one account for multiple businesses, you will need to manually download the transactions from your bank and upload them to the correct company file, or enter them manually.
• Reporting: Each company file has its own reports. You cannot run a consolidated report that combines data from multiple company files within QuickBooks Online.

When should you use a single company file?

If the additional company is actually a “Doing Business As” (DBA) for the same legal entity, it is better to use a single QuickBooks Online company file. This keeps all financial data in one place and avoids the need to manage multiple logins or bank connections.

• Tracking: Use Classes or Locations (found in Settings) to track income and expenses by DBA.
• Invoicing: You can customize the “From” field on your sales forms to display the specific DBA name for each invoice.
• Banking: You can connect all bank accounts to one company file and tag transactions to the correct Class or Location.

If you are unsure which setup is best for your tax situation, we recommend consulting with an accountant.