Peace:

I would suggest setting up an additional company for the Day Trader business because they are two very different businesses. However, speak to the owner and the accountant to determine the circumstances and ownership. Does the incorporated business own the Day Trader business? If so, you can either set them up separately, include it within the incorporated business or use the consolidated company function in Sage.

Hope this helps!

Hi Agate, thank you so much for your quick response.

To the question if the incorporated business own the Day trader, the answer is yes. The Money that will be invested in the new self employment “Day trader” is coming from the incorporated company, that is why I am wondering if is more manageable to include the transactions from “Day Trader” in to the Incorporated company, just recording the transactions through sub accounts in the case of expenses, and with a dedicated accounts for income. I would like to know if is mandatory that I set up another company? Or if is except to the client if he wants to keep all transactions under the Incorporated company?

When you talk about consolidated company function in sage, I have not use that fixture, I will dig in it, because I don't have any idea of it. sorry :(

Thanks again!

Hi Peace:

There are several ways to handle this depending upon the version of software you have. If you have the Pro version you can use Projects to setup a Project for each company. When purchasing or selling code to the G/L number and a Project(s) to differentiate between the 2 companies.

If you are running Premium or higher you can use Projects as mentioned above, create departments one for each company and code your purchases and sales to the G/L number and the department or lastly, create two companies and consolidate the two companies into one consolidated company using the consolidation feature.

Hope this helps!

The problem that I could have if I go by consolidating companies, the fiscal year isn't it? The Incorporated company run from Nov to Oct, the new activity for Day trader started on April. Wondering if I can make a short fiscal year, finishing on Oct also, and start both on Nov. Can this be possible? 

Your simplest and cleanest way to handle this would be to have Day Trader set up as a separate company within Sage 50. Two reasons for this: first a different fiscal year end and second there probably would be very different accounts required as the two businesses are very different.

The money coming from the Corporation does not make the Corporation the owner of the Day Trader. The money could be a loan to Day Trader or it could be a loan to the principal who in turn loans the money to Day Trader. There are a number of scenarios here that we cannot speculate on based on the information at hand. This part needs to be discussed with the Accountant involved to get the set up completed properly. 

HTH

Thank you Alwyn,

Talking with my client, I just confirmed the Corporation is the owner of the Trade, and the fiscal year needs to be confirmed yet. I already set up an app with the Accountant.

Thanks again and have a good day!