Managing bookkeeping, accounting, like financial data properly, tracking invoices and bills, and creating an accurate report is not a simple task for business owners. Accounting software is used to fulfil those types of needs, where QuickBooks Online is the best option to manage all these things. But the question can you merge two company files directly in QuickBooks Online? This question is especially important for people who operate more than one business or who have mistakenly created multiple company files. So in this blog, we discuss this question with its detailed information.
What is QuickBooks Online?
QuickBooks Online is a smart web-based software for accounting created to handle financial data. It provides a smart solution for any size of business, in which the only focus is on simplifying accounting tasks. You can access and review records with AAA (Any-device, Anywhere, Anytime) access facilities. It provides some features like creating invoices, managing bills, syncing bank transactions, handling payroll, and generating accurate reports. It permits your team and other users to work on a single platform to simplify the work. This feature makes a strong trust for today’s businesses.
Can You Merge Two Company Files Directly in QuickBooks Online?
Now comes an important question: can you merge two Company Files directly in QuickBooks Online? So the answer is No.
There no feature present where you can merge two company files directly in QuickBooks Online. Every company file is exists with its own transactions, reports, and audit trail. If merging is allowed directly in QuickBooks Online, then there would be a high risk of duplication entry, errors, and corruption in accounting data. Accounting is complicated task where a small mistake can create huge compliance issues. That’s why QuickBooks Online does not have the direct merging option.
Reason for Merge Two Company Files Directly in QuickBooks Online is Not Possible
You may be wondering why direct merging is not possible. There are some strong reasons behind the disablement of direct merging, which are related to the design and compliance requirements of the system.
Issue of Data Integrity
Every company file is maintained with its own audit trail and transaction history. If two files are merged directly, then the audit trail gets disturbed, and it becomes difficult to maintain data accuracy.
Chart of Accounts Mismatch
The Chart of Accounts of two different companies may be completely different from each other. If the merge is completed without mapping, then transactions may go to the wrong accounts, and reports may become misleading.
Tax and Compliance Challenges
Every business operates according to the rules of its tax jurisdiction. If files with different rules are merged into one, then the chances of compliance issues and wrong tax filing increase.
Security and Privacy Concerns
The financial data is highly sensitive. If there were a direct merging option, the risks of unauthorized access and misuse would have increased. Therefore, QuickBooks Online has restricted this option for security purposes.
System Architecture Limitation
The entire structure of QuickBooks Online is based on the principle of one subscription equals to the principle of one company file. If the direct merging is allowed, the entire architecture would be disturbed, and there would be problems in the smooth functioning of the system.
What is the Alternative Process if Direct Merging is Not Possible?
Now the question is, if direct merging is not possible, then how do users manage their data? Luckily, there are some alternatives available that help you merge multiple company files.
Manual Export and Import
In QuickBooks Online, there is an option for export and import. There, you can manually export a list of customers, vendors, and the chart of accounts from the first file and also import them into the second file. Commonly, this option is used for a list, but it doesn’t work for the detailed transactions such as invoices, bills, and payments.
Consolidated Reporting Through Excel/Spreadsheet
The second option is that you export the financial reports of both the company files and combine them in Excel or Google Sheets. For example, if you need to see the combined view of profit and loss, then merge both company reports in a sheet to make a consolidated report. This is a manual process, but if the requirement is only for high-level reporting, then it is useful for you.
Use Third-Party Tools
In today’s market, there are many certified third-party applications available which is especially designed for QuickBooks Online. These third-party tools pull out the data from company files and map it into another file. You can also migrate the data easily without manual errors, but always try to use trusted and properly verified vendors because of the financial data security.
Maintaining a File for the Future
Some businesses adopt an approach to keep a company file active and make the other file an archive. That means for merging, you decided that now the future data is to be maintained in one file, and the data of the Old file is to be kept safe only for references. This option is the best in the situation where Businesses are merging legally or an entity is closing.
Conclusion
Now we think you all are clear that merge two Company Files directly in QuickBooks Online is not possible. The architecture of QuickBooks Online is designed in such a way that there is a unique subscription for every company. You can do manual export-imports, create true consolidated reports of spreadsheets, or use third-party tools. Maintaining exact and perfect financial records in a business is very important. If you have doubt or confusion, then immediately contact the QuickBooks experts for an instant solution.