To start with, a multi-entity business may have distinct branding, branches, offices, subsidiaries, units, divisions, and so on. For the most part, the parent corporation supervises the subsidiaries. Every individual entity is highly autonomous in its operations. Even standard company operations like accounting frequently entail using distinct workflows.
Conglomerates and multi-entity organisations have intricate multi-entity accounting requirements. They require accounting systems that can easily manage complex processes like consolidation and changing currency rates, as they often operate across multiple countries and trade in different currencies.
The centralised setting, in which all of the data from all of the subsidiaries, branches, and businesses is stored in a single, central location, allows entities to view and track the data of other fellow entities. This is by far the most significant benefit of multi-entity accounting software. This post features some of the top multi-company software many businesses have widely used.
Your business may overcome numerous obstacles, increase efficiency, and improve visibility at the entity and corporation levels by finding the best multi-entity accounting software. Accounting for multiple entities is the process of consolidating all the financial statements from different subsidiaries into a single balance sheet that fairly depicts the parent company's performance.
However, multi-entity accounting is more complex than adding up the totals and entering them into a spreadsheet. For instance, you must consolidate currencies and ensure your procedures adhere to local laws if your organisations operate in multiple nations. Additionally, you'll need to carry out intercompany eliminations. It is for this reason that having multi-entity accounting software is crucial.
Check out our selection of the best multi-entity accounting software options to know what’s best for you!
Any corporation that has an ownership stake in several subsidiary companies is considered a multi-entity company.
A few instances of multi-entity businesses are as follows:
Multi-entity accounting software is a financial management tool that streamlines accounting activities for multiple entities using a single integrated software system.
The accounting software solution allows several organisations' financial data to be synchronised under a single interface. The accounting software is designed for companies that own and operate multiple organisations with different accounting requirements.
If a business holds a sizable stake and has a voting right in another business, it is considered a multi-entity business. This may occur when a business merges with another business, buys it entirely or opens an office overseas. Multi-entity companies are referred to in accounting as parent, conglomerate, or holding company.
A holding company's main objective is not to produce, sell, or engage in any other type of commercial activity. This business type is based on the idea of holding the other company's stock and exerting control over its decision-making.
A conglomerate is an organisation with business operations in several different industries under one umbrella.
Other circumstances where having multi-company accounting software is essential include:
Multi-business accounting software includes ERPs, other forms of integrated accounting systems, and AP automation solutions for accounts payable and international payments.
The top multi-entity accounting software on the market should have the following key features:
Scalable multi-entity accounting software is capable of effectively managing business expansion. Users should be able to grow their operations and add new entities easily. Seek for software that can accommodate and support diverse entities and has the flexibility to meet the demands of a complex corporation. Multi-entity transaction processing is made simpler by scalable software.
In multi-entity accounting software, customisation and integration capabilities are essential elements to consider. It should provide customisable choices for business process accounting automation and integration with services and technologies essential to your company. Additionally, the software must include customisable dashboards, financial reporting, and process customisation options for better visibility.
Multi-entity accounting software must offer multi-currency functionality if your company conducts business internationally. Accurately managing, tracking, and reporting on financial transactions in several currencies is made possible by this capability. Gives updates on currency conversion rates in real time.
Manual accounting procedures should be automated by top-notch multi-entity accounting software. Finance professionals can reduce errors and save time by automating time-consuming accounting activities. Seek software that does accounting reporting, creates invoices, and automates journal entries. The software should facilitate the effective administration of several organisations with automated workflows, minimise errors and save time by decreasing error-prone human data entry.
Multi-entity accounting software includes a plethora of sensitive financial data. To protect this data, the software ought to have robust security features in place. Furthermore, it should facilitate granular access controls, which allow people to access particular data based on their roles to ensure data privacy. Software should be capable of encrypting sensitive financial information and providing a reliable audit trail for accountability.
Your software needs to enable automatic account syncing. Managing bank books can be an uphill task for companies with multiple locations. Thankfully, there are ways to improve efficiency in this area, like having your bank book entries and bank statements automatically reconcile through software.
Accounting gets more complex as a business expands and adds new services, products, or geographic areas to its portfolio. Due to this type of organisational drag, a finance team has much more work to do. Following are the challenges faced:
Due to this, it is challenging to swiftly and easily determine where the business as a whole is spending money without having someone manually compile financial practices and various ledger codes.
It may be difficult to compile accurate financial data if numerous subsidiaries employ different, incompatible software platforms. It all eventually ends up back in an Excel spreadsheet.
The complexity of tax relief and regulations increases as businesses expand into new regions. To comply with its specific tax regulations, every subsidiary business needs its accounting system. The parent firm, meantime, must always be cognizant of how much money is being made in profit and how much is being taxed.
A multi-entity corporation will use multiple currencies if it operates in multiple nations. Determining how much cash you have in the parent company's currency at any given time might be challenging because currency values fluctuate minute by minute.
Imagine a CEO wanting to examine their business to see what was selling, what wasn't, and why. They must be able to segment their revenue according to budget line, area, and product. Many organisations need a standardised method for managing and viewing each entity's finances within a single system, which causes human errors, late-night report compilation, and an inability to view the performance of the business as a whole.
The company must add more spreadsheets or open new accounts for every distinct entity as it expands. They must copy and paste data between databases as there is no simple mechanism for them to share information. This is not only ineffective, but it also raises the possibility of mistakes or missing data. If this is not reviewed, it may result in misleading reporting to investors and penalties or fines.
Your team must manually collect data from each business into a single report at the end of each month if there are yet to be consolidated financial reports. This frequently entails working long hours or even days, depriving your staff of strategic tasks or even their day-to-day.
The top accounting software for numerous businesses, ERPs, and AP automation software connected with ERPs are included in the list below.
Multi-entity accounting becomes substantially simpler if companies use the same finance systems and procedures. Thus, it is advised that a company utilises a single software across all entities. In this instance, Inkle Books can significantly benefit companies by helping them track and consolidate expenditure information for accurate multi-entity accounting.
Categorising transactions is made more accessible than ever before with Inkle Books. Our key solution is a chat-based accounting platform that integrates with your current accounting software to save you time and money on training and disposal. Monitor & control the money transfers between your businesses.
This is the most effective accounting software suggested for businesses with multiple entities. Features in this software help you save time and improve the clarity of your business performance. Since FreshBooks is one of the most widely used accounting software programmes, it is the greatest choice for day traders or solo proprietors that need experience in bookkeeping and money management.
Additionally, FreshBooks speeds up and improves safety when dealing with and managing several business accounts. The Expenses tab features Quick Expense Creation, eliminating the need for multiple clicks or complexity when creating an expense.
QuickBooks is an affordable small business accounting programme that supports multiple entities. QuickBooks provides the on-premises QuickBooks Desktop product line and the cloud-based QuickBooks Online software. In addition to small businesses, several medium-sized companies that can satisfy QuickBooks' user limits and find that its multi-entity features are sufficient for their requirements also utilise QuickBooks Enterprise Desktop.
You must purchase an online accounting software subscription for QuickBooks Online for every business. With one sign-on, you can switch between companies. On the other hand, one software license allows you to create and manage a limitless number of firms using the QuickBooks Desktop accounting solution. QuickBooks accounting software connects with numerous third-party add-on software packages to provide some ERP-like features.
Xero is a multi-entity cloud-based accounting software that offers small businesses basic multi-currency functionality. Like QuickBooks, Xero offers a marketplace for additional functionality provided by third-party software integrations. Xero has various SaaS price options. Plans at higher levels allow for a limitless number of users.
A cloud-based ERP solution in the midrange, NetSuite has many Suites (modules) to carry out unified, integrated system tasks. Also, NetSuite does a good job with GAAP accounting. OneWorld Suite from NetSuite is an excellent choice for multi-entity, global accounting. Real-Time dashboards and reporting are available in NetSuite.
Zoho Books is our next pick; this cloud-based software is scalable and appropriate for small and large businesses. Some features include accounting reports, expense management, and limitless invoice tracking. It can be shared with other outside professionals so that you can consult your bookkeeper or accountant for advice. You may reconcile several bank accounts and credit cards using Zoho. Additionally, it is completely integrated with the Zoho product line, which includes Zoho Inventory, Zoho CRM, and other products.
A comprehensive accounting solution that streamlines business operations across various sectors, including financial services, banking, insurance, hospitality, and healthcare. It is a powerful platform, offering exceptional support and versatility for your accountancy.
Thanks to its user-friendly features, flexiFinancials gives you accounting tools ranging from GL and AP modules to an entire suite. It improves your accounting skills through integration, enhanced reporting, and strong automation. With its AI technology, it operates endlessly and adjusts to the flexibility that improves your accounting performance.
Xledger is our top choice for company owners seeking an accounting system that will allow them to grow without any limitations. It is a cloud-based financial management system that handles and offers solutions for your various accounts.
You may access core accounting, reporting and analytics, asset management, forecasting, accounts receivable/payable, workflow and expense reports, and project accounting with Xledger cloud financial management.
All in all, its modules increase the accessibility and security of your accounting. Xledger is cloud-based software that assists you in aggregating financial data for each division inside your organisation. If your firm operates internationally, it also supports several currencies and languages. You may overcome challenges in producing precise and comprehensive reports and financial data for your company with the help of this programme.
Sunrise is an accounting programme designed to make bookkeeping easier for multi-entity businesses. This feature-rich accounting solution will help you manage your books, save time, and clearly understand how your firm is doing.
Sunrise is a simple and easy-to-use programme that assists you in improving your cash flows, managing small companies and spending, and making wise decisions.
You can manage several accounts with its help, schedule automatic payments, and receive your money more quickly. With capabilities like customised invoicing, instantaneous financial reporting, tracking expenses, easy payroll processing, quick and straightforward development of quotations and estimates, cash flow management, and more, Sunrise will assist you in understanding the financial health of your company.
You are already aware of what a multi-entity business is. Let's examine the advantages your company can get from implementing a multi-entity accounting solution. Some advantages of multi-entity account software for various companies are as follows:
Accounting functions frequently overlap between branches/subsidiaries. Workload could be the reason for this, but it could also result from underutilised staff members and distinct systems.
For instance, a company may benefit more from having a central accounts payable office. However, it must still deal with each entity's different bank accounts, payment periods, and procedures. Accounting software for many entities synchronises with the accounts payable systems of each entity, enabling centralised management of payments and approvals.
With more accounting processes in place, CEOs have to spend more time managing them, regardless of the size and personnel of the company. Work on strategy and other business-related tasks can be done more efficiently when software centralises and coordinates activities.
Multi-entity accounting software will enable you to compare the performance of each branch if you are managing a company with multiple subsidiaries or branches. Comparative financial statements make it simple to obtain accurate information about whether branches are failing or overperforming, allowing you to establish benchmarks for the future.
You can design uniform charts of accounts for the many business entities in your company using accounting software.
You might run into specific difficulties whether you close your books of accounts manually or with typical spreadsheets at the end of the year. But you may cut down on time and close your books more quickly if you use accounting software.
Discover the benefits of multi-entity accounting solutions, which let you automate numerous small clients while maintaining profitability.
In terms of the accounting services environment, accounting firms that oversee numerous small and medium-sized enterprise (SME) clients would benefit greatly from multi-company accounting software. Businesses that assign various teams to do activities like data input, approval, and reconciliation may also find it beneficial.
Accounting supervisors also need help with account switching. They will have to log into each account to review the books for each client. Furthermore, because a firm's practice is fragmented among multiple apps and tens of accounts, managing partners need a consolidated picture of a firm's practice.
Supervisors may effortlessly access accounting information for every accountant using a web-based multi-entity software solution, which makes workload tracking and evaluations easier. To more effectively manage resources and distribute responsibilities within an accounting team, assigning or reassigning authorisations is also simple.
Managing several subscriptions for every customer can get complicated, particularly if they increase in cost or unexpectedly expire. Consider consolidating all subscriptions under one roof using multi-company accounting software, cutting the subscriptions from 100 to just one.
Multi-entity accounting software is a crucial resource for companies that oversee several firms. It makes tax compliance easier, saves time and effort when handling the finances of many organisations, and helps preserve consistency and accuracy in financial records.
It may seem difficult to choose the best multi-entity accounting software, but it will be worthwhile in the long run to take the time to investigate and take into account your company's requirements. The software solutions available provide a wealth of features and integrations to help you succeed financially, manage your finances, optimise workflows, and boost overall productivity. They also provide insightful data that you can use to guide business decisions.
Every software has merits, ranging from the extensive Inkle Books software to the user-friendly Quickbooks Enterprise. The finest multi-entity accounting software will ultimately depend on your preferences, budget, and particular business requirements.
There are more crucial aspects to take into account when selecting accounting software for your multi-entity businesses, such as frequently reviewing compliance principles and GAAP and IFRS reporting requirements, especially as your business grows. Check for updates often, and be sure you abide by the rules.
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