Acquiring new businesses, expanding into new (perhaps international) locations and creating new business units are all natural parts of business growth. But without the right enterprise resource planning (ERP) software to help you manage this growth, you could quickly (and unknowingly) waste a lot of time in your back office.
As your business grows, “multi-entity accounting” is a term you’ll encounter frequently. You’ll need ERP software that’s equipped to handle accounting for multiple business entities to ensure your processes remain efficient and effective.
ERP Software For Multi-Entities
Imagine you run a financial services firm. Your headquarters is in New York City, but you have many business units. Next year, you plan to add new legal entities and each of your new entities will operate as separate companies.
How would this change your accounting and financial recordkeeping processes? What if you acquire another firm six months later?
Trying to do multi-entity accounting with an entry-level application such as QuickBooks is not only difficult, it’s inefficient. You need ERP software with strong financial reporting and multi-entity accounting capabilities to operate efficiently.
Keeping Multiple Entities On The Same Page With ERP
Without the right ERP software, even the most basic recordkeeping becomes a daunting task in a multi-company/multi-entity business environment.
Multi-entity financial reporting software, such as Microsoft Dynamics, ensures accounting and financial tasks are completed efficiently by collecting each business entity’s information in a single database. Doing so eliminates the need for switching between companies to record transactions and perform reporting.
Multi-entity ERP software allows you to effortlessly record bank transfers between different entities, eliminate the need of creating manual intercompany journal entries, generate entity-specific reporting instantly and allocate business expenses to multiple entities within a single transaction.
When this information is centralized, it’s much easier for an accounting team in a multi-company environment to perform transactional tasks. In addition, generating consolidated financial reports across companies is simplified.
Currency Management With Multiple-Entity ERP
If your company’s growth takes you overseas, you may need to make financial transactions in multiple currencies. When your business needs to account for dollars, yen and euros, having an ERP system with strong currency management tools is critical.
Multi-entity financial statement translation reporting software allows multinational companies to create an adjusted set of books in the local currency to conform to Generally Accepted Accounting Principles (GAAP) requirements, and then translate statements to the parent company’s reporting currency for consolidation, comparison and roll-up financial.
Integrated Financial Analysis And Analytics
No multi-entity company can rely on a single piece of software to run the organization. Industry-specific systems are necessary for a business to run smoothly. For example, you might need specific contract management software that’s separate from your accounting software.
Whatever the case, it’s important that your financial management software can integrate with the industry-specific programs you use to run your business.
A multi-entity ERP solution like Microsoft Dynamics SL seamlessly integrates with other business software applications, ensuring that you have an easy-to-access, clear picture of your financial state.
Get specific answers to your questions about bringing a multi-entity ERP solution into your organization. Speak with one of our professionals today to assess your current needs and explore your options.