This Business Center Accounting Overview will cover
- Review Business Center Accounting.
- Separate your Business Center from your Market Center.
- Prepare for Transactions.
What is a Business Center?
A Business Center is a satellite office working with a Market Center. A Business Center allows the Market Center to extend its support to a greater base of agents when the market area will not support an additional Market Center.
You must contact your regional office for more information and an application.
The region must grant an “Authorization to Proceed” letter to the Market Center before development activity beings.
Business Center Accounting Overview
As an MCA, you understand AccountEdge’s ability to track the financial activity of your Market Center. However, you may not be aware that AccountEdge is also capable of tracking your Business Center activity at the same time it tracks your Market Center activity. You can reduce the needs for additional data-entry steps involved in recording Business Center transactions once the Business Center is properly set up in AccountEdge.
The accounting needs of your Business Center are almost identical to those of your Market Center. Both need to produce a profit, and this is measured and reported on Profit and Loss Statements. Both have operating budgets, which are also measured and reported on Profit and Loss Statements. Market Centers and Business Centers even operate as the same company using the same Taxpayer Identification Number (TIN).
The most neglected similarity of both is the need to enter ALL transactions for your Market Center AND your Business Center in your accounting software, in this case, AccountEdge. It is extremely important to keep transactions separate between the Market Center and the Business Center, and yet, extremely simple to do so. This is done by using Job Codes to separate out transactions for the market center and any business centers you have. By coding transactions with a Job Code, you are able to produce financial statements that show the overall totals of the entire organization as well as ones targeted at just the market center or business center(s). It is this vital separation that allows AccountEdge to effortlessly produce meaningful reports for both your Market Center AND your Business Center, or even both combined at the same time (Remember, they are the same company).
As for the main accounting differences, the Market Center has a Balance Sheet whereas the Business Center does not (the Market Center and the Business Center operate as one company using the same TIN) and the Market Center transmits all production data (market center and business center combined) to KWRI. The Business Center does not do a separate transmittal.
For more information on Business Center Accounting: Setting Up AccountEdge, click here
For more information on Business Center Accounting: Entering Job Code Budgets, click here
For more information on Business Center Accounting: Transactions, click here
For more information on Business Center Accounting: Reports, click here