Industries · Multiple companies, one owner

Bookkeeping for corporate groups and holding companies

Multiple companies, one owner, many payments between them: we keep the books for each company separately and reconcile the accounts between them every month, so nothing drifts apart by year-end.

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For holding companies, investment companies, and groups with several companies, digitally and in Hamburg

Month-end close for a corporate groupExample

CompaniesHolding company and 3 subsidiaries posted

4 posted

Intercompany accountsBalances between all companies match

reconciled

Group allocation3 invoices from the holding company posted on both sides

posted

Loan to subsidiary 2Interest not yet paid as per the contract

1 open

Group liquidityBank balances of all companies

ready

Example of a monthly overview. You can see discrepancies between companies before they accumulate over the course of the year.

Multiple companies, one owner:Corporate groups and holding companiesAll industries in the field of

Your industry

What sets your industry apart

In a corporate group, each company has its own books, its own bank accounts, and its own obligations. At the same time, a lot of money flows between the companies: the holding company bills for management and administrative services, one company pays the invoices of another, and loans go back and forth. Each of these payments must appear in both sets of books, with the same amount and in the correct intercompany account.

That is why we reconcile the intercompany accounts between the companies every month. If a balance differs, we clarify the cause immediately, while the receipts are still at hand. At the end of the year, the tax advisor receives reconciled balances for each company instead of a list of open questions.

Group allocations and transactions between companies require a basis: a contract, a transparent calculation, and an invoice. The tax advisor determines whether an allocation is appropriate and how it should be treated for VAT purposes. Upon request, we prepare the monthly allocation invoices in accordance with the contract and your specifications, post them in both companies, and ensure that the contract, invoice, and payment match.

If there is a fiscal unity, special rules apply. In a fiscal unity for VAT purposes, transactions between its members are treated differently than those between unrelated companies, and profit transfers or loss absorptions under a profit-and-loss transfer agreement must be included in the annual financial statements. The tax advisor determines whether a fiscal unity exists, what the implications are, and how the financial statements should be prepared. We post entries on an ongoing basis according to their instructions and provide them with the figures for all companies on time and in the same format.

A group also needs an overall view. Consolidated financial statements and consolidation are not part of our services. However, we present the monthly reports for all companies side by side, show the group’s bank balances and loans at a glance, and discuss with you where funds are tied up and where they are lacking. This allows you to see early on whether a company needs liquidity before payments have to be postponed at short notice.

Attention to detail

What we pay attention to

Intercompany accounts: balances between the companies reconciled every month
Group allocations: contract, calculation, invoice, and payment are all aligned
Intra-group loans: disbursements, principal repayments, and interest in accordance with the contract in both companies
Payments on behalf of others: invoices that one company pays for another are properly recharged
Distributions: resolution, payment, and tax certificate filed together
Fiscal unity: ongoing entries based on the tax advisor’s assessment
Uniform chart of accounts: all companies use the same structure so that the figures are comparable
Same rhythm: all companies follow the same monthly cycle; none falls behind
Group liquidity: bank balances and loans for all companies at a glance

Payroll

Payroll in your industry

Managing directors: salaries paid by the holding company or the subsidiaries, as stipulated in the contracts
Employees working for multiple companies: separate payroll processing and reporting for each company
Recharges: personnel costs of employees who work for other companies, clearly allocated
Shareholder managing directors: social security contributions based on the results of the status determination

More about payroll

Receipts

Which receipts we need

Contracts between companies: agency agreements, allocations, loans, and rent
Allocation invoices and cost pass-throughs
Bank statements for all companies, including money market and loan accounts
Shareholder resolutions regarding distributions and loans
Loan agreements and interest calculations
Overview of the group, including shareholdings and managing directors

Each company is a separate client with its own books. You upload receipts for each company to the client portal; for invoices involving multiple companies, send us a brief note on how to split them. You upload bank statements for each company to the client portal.

Start

How we get started

To get started, we need an overview of the group: which companies exist, who holds stakes in whom, and what agreements exist between them. In addition, we need the most recent annual financial statements, the balances of the intercompany accounts as of the reporting date, and any instructions from the tax advisor, for example on a fiscal unity. We set up all companies using the same chart of accounts. The tax advisor posts the opening balances from the financial statements; we then reconcile the intercompany accounts against each other before the first month begins.

With your tax advisor

We post the entries; the tax advisor decides the tax treatment

We set up the chart of accounts, record ongoing business transactions, run payroll, and prepare wage tax returns. Every month, we reconcile the accounts and pass the figures on to your tax advisor.

You hire the tax advisor directly, with your own contract and billing arrangement. If you don’t have one yet, we can put you in touch with our partner tax advisor, with whom we work closely.

Decisions on tax treatment are the tax advisor’s responsibility. We post entries so that they’re ready for the tax advisor to work with immediately.

How we work with tax advisors

The tax advisor handles the following on your behalf

Assessment and setup of a fiscal unity
Appropriateness of group allocations, transfer pricing, and loan interest
Annual financial statements with profit transfers, loss absorption, and equity investments
Withholding tax on distributions, advance VAT returns, and tax returns
Consolidated financial statements and consolidation, where necessary

Questions

Frequently asked questions

Does each company get its own books?

Yes. Each company is accounted for and analyzed separately. We reconcile the intercompany accounts between them every month.

Do you prepare consolidated financial statements?

No. Tax advisors or auditors handle the annual financial statements, consolidated financial statements, and consolidation. We provide them with reconciled financial records for all companies.

We have a fiscal unity. What does that mean for the bookkeeping?

Transactions within the fiscal unity and the profit transfer are treated in a special way. Your tax advisor determines which of these apply to you; we post entries on an ongoing basis according to their instructions.

Can you handle the group allocation?

We prepare the monthly allocation invoices in accordance with the contract and your specifications and post them in both companies. The tax advisor assesses whether the amount is appropriate.

How much does bookkeeping for a group cost?

Custom pricing on request. The quote is based on the number of companies and transactions; you’ll receive it after completing a short questionnaire.

Do you work with our tax advisor?

Yes. We provide them with the accounting records for all companies in DATEV format and coordinate with them. If you don’t have one, we’ll recommend a tax advisor we work with.

Contact

Let’s talk about your bookkeeping.

During our initial consultation, we’ll determine what your business needs. Afterward, you’ll receive a binding quote via email.