Multi-Entity Bookkeeping
Separate, accurate books for your practice, the building it operates in, or a med spa's management company and medical entity.
What This Is
A lot of practices are really two or more businesses. A physician or dentist may own the practice in one company and the building in a separate real estate company, with the practice paying rent to the building each month. A med spa is often split into a management company that runs the business side and a physician-owned medical entity that provides the treatments, a structure many states require under corporate practice of medicine rules.
Each of those entities needs its own books, its own bank accounts, and its own tax return. Money moves between them in the form of rent, management fees, shared staff, and the occasional loan. Every one of those transactions has to show up correctly on both sides. This service keeps each entity’s books separate and accurate, and makes sure the numbers between them agree.
The Work
The Work
Each entity gets its own set of books in QuickBooks Online. We reconcile every bank and credit card account, record rent and management fees on both sides as they happen, and track any money one entity owes another. We follow the lease and management agreements your attorney put in place. We don’t set the terms, we make sure the books match them.
The Monthly Close
The Monthly Close
Every entity closes on the same schedule as your main practice books. You get a one-page summary for each entity and a combined view so you can see how everything fits together. If the building company or the management company has fallen behind, we bring those books current first, the same way we would for the practice.
Why This Matters
Owners usually set up separate entities for good reasons. It might be liability protection, it might be a state requirement, or it might be the advice of an attorney or tax advisor. The paperwork gets filed and then day-to-day life takes over. The practice pays the building’s property tax because it was easier. Rent gets skipped for a few months when cash is tight. The management company covers a supply order for the medical side and nobody writes it down.
Over time the entities start to look like one business on paper, which works against the reason they were separated in the first place. For med spas, where the split exists because of state rules, books that blur the two sides can raise questions if a regulator, lender, or auditor ever takes a close look. And at tax time, someone has to sort out a year of mixed transactions before any return can be prepared.
Blurred Lines
Blurred Lines
When one entity pays another entity’s bills, or rent and management fees are recorded inconsistently, the separation exists in name only. It becomes hard to tell which company earned what, which one owes money, and whether the arrangement is being followed the way it was written.
Tax Time Cleanup
Tax Time Cleanup
Each entity files its own return, and the numbers between them have to line up. If rent the practice deducted doesn’t match the rent the building reported as income, someone has to find out why. Untangling that in March is slow, expensive, and stressful for everyone involved.
What Changes
Each entity’s books stand on their own. You can see whether the building is covering its mortgage and expenses, whether management fees are being recorded as agreed, and how much each company actually owes the others. The structure you paid to set up starts working the way it was meant to.
When tax season arrives, our enrolled agents start with clean books for every entity instead of a pile of questions. Because we see all of your entities together, we can also spot planning opportunities that only show up when you look at the whole picture. Our CIO, Marc Eastin, is a practicing neurosurgeon who owns a business himself, so the systems behind this work were built by people who know what it’s like to be the owner.
Clear Separation
Clear Separation
Every transaction lands in the right company. Rent, management fees, and shared costs are recorded the same way every month and match on both sides. If anyone asks how your entities operate, you have organized records that show it.
The Whole Picture
The Whole Picture
You get a summary for each entity and a combined view of everything you own. That makes it easier to answer real questions, like how much you’re really earning across the practice and the building, or whether the management company has the cash to cover next quarter’s expenses.
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