Multi Entity Accounting

Prosaic includes a built-in way to manage multiple entities for a single client — without relying on tracking categories.

This feature is designed for common scenarios such as:

• Multiple rental properties owned by the same client
• Clients running several consulting or trading activities through one bank account
• Separating personal and business activity while keeping reporting clean

Instead of forcing everything through tracking categories, Prosaic uses entities and automates the accounting required to move transactions between them correctly.

How entities work in Prosaic

In Prosaic, you can:

• Create multiple entities quickly and easily
• Connect one or more bank accounts to a single “banking” entity
• Create additional entities (for example, rental properties or trading businesses)
• Use shared chart of accounts templates across all entities

Chart templates can be kept in sync across your clients. When you add or update accounts in a template, those changes can be applied automatically to all linked entities. This makes multi-entity setups easy to maintain at scale.

Splitting transactions between entities

When a bank transaction needs to be split across entities, Prosaic handles the accounting automatically.

Example: splitting a bill across two rental properties

1. Open a transaction (for example, a Contact Energy bill)
2. Choose Split
3. Allocate part of the transaction to another entity (for example, 50% to Auckland, 50% to Dunedin)
4. Select the relevant chart of accounts for each side
5. Apply the appropriate GST treatment

When you reconcile the transaction, Prosaic will:

• Split the bank transaction across entities
• Automatically create inter-entity receivable and payable accounts
• Keep both entities perfectly in balance
• Correctly account for GST on each side

In the reconciled view, transferred transactions are clearly labelled so you can see where they’ve been sent.

Inter-entity accounting (handled automatically)

Behind the scenes, Prosaic:

• Creates an inter-entity receivable in the source entity
• Creates an inter-entity payable in the destination entity
• Posts the correct expense or income to each entity
• Ensures the ledger remains balanced across entities

You don’t need to manually manage journals or clearing accounts — Prosaic takes care of this for you.

Reporting by entity

You can run reports per entity, using a shared chart of accounts.

Currently, you can:

• View Profit & Loss for a single entity at a time
• Filter reports by financial year and entity
• See expenses and income correctly allocated, including GST

What’s coming next

• Filtering reports by multiple entities
• Automatic consolidated Profit & Loss and Balance Sheet
• Intelligent consolidation where entities use slightly different charts (matching common accounts and showing differences clearly)

Why use entities instead of tracking categories?

This approach is ideal when you want:

• Proper balance sheets per entity
• Clean inter-entity accounting
• Scalable setups for multi-property or multi-business clients
• Less reliance on tracking categories for structural reporting

Entities give you a more flexible and accounting-correct way to manage complex client structures, while keeping day-to-day workflows simple.