When a group of entities forms a consolidated group for tax purposes, they are treated as a single entity for income tax purposes. This means that all the members of the consolidated group combine their individual financial accounts to produce a single set of financial statements, which is referred to as the consolidated accounts. The consolidated financial report reflects the financial position and performance of the group as if it were a single entity.
The Australian Taxation Office (ATO) requires that the head company of a consolidated group must lodge a consolidated tax return that includes the combined income and expenses of all the members of the group. The consolidation process simplifies the tax affairs of the group by reducing the number of tax returns required and eliminating intra-group transactions for tax purposes.
The ATO provides specific guidelines on how to prepare and lodge consolidated accounts in the Consolidation reference manual, which is available on their website. This manual includes detailed information on the operation of consolidation, including the practical impacts for business and the reporting requirements. LINK
In this article, tackles about:
Consolidate in QuickBooks
Make sure that you have consolidated entity in QuickBooks in order to sync it in LodgeiT as a "client"
Learn more here on how to sync
Combined Financials using Excel
Only one financial can be imported to LodgeiT.
Consolidation must be done in Excel (combined financials). After you have the consolidated figures of the 2 stores, you can use LodgeiT Excel Template to import the financials in LodgeiT.
For Activity Statement/BAS:
The user can import BAS figures from QBO for consolidated group under 2 conditions:
- They have a consolidated company with ABN and created one in LodgeiT.
- They have one consolidated company file in QBO and they can connect it to LodgeiT.