Multi-Entity Accounting doesn’t need to Mean More Work
- HRMS (HR & Payroll) August 12,2020
A single entity is often a standalone business or a segment, department, or operating unit within an industry. A multi-entity business could also be a parent company, holding corporation, or conglomerate with various subsidiaries, affiliates, and associates. You furthermore may even see the concept of multi-entity business applied to a standalone company, especially if business observers take the organization because of the sum of varied departments, segments, operating units, and regions.
Create Across-The-Board Transparency
Company trust and credibility are furthered when equivalent key information is formed available to all or any stakeholders. That's why cloud-based accounting software which will be viewed anywhere, anytime is so valuable. The simplest versions leave easy share-ability and make sure that key data is accessible on one dashboard so everyone who must know can continue on real-time business metrics.
Automating Multi-Entity Financial Consolidations
With the acquisition of the latest businesses, geographic growth, product lines, or when there's a requirement for security between divisions, multi-entity companies got to add new companies or databases within an ERP to accommodate their growing structures. The resulting process is often inefficient and increases the danger of knowledge errors. For instance, copying the master records and chart of accounts from one database belonging to at least one company to a different database of another company. This manual process features a high probability of knowledge errors.
Manual Multi-Entity Financial Consolidations
Accounting practices for one entity will often not work for multi-entities for tasks like period-end closing and reporting, also as maintaining regulatory compliance. Without how to consolidate this information, it becomes increasingly difficult for decision-makers to urge a big-picture view of the company's financial health.
Manual, spreadsheet consolidation is error-prone for multi-entity mergers. Links between spreadsheets could break, leading to a loss of function and errors. Additionally, critical data are often lost without proper back-ups. Manual consolidation processes can cause further delays thanks to time-consuming manual entries. If there are multiple people closing period-end across entities, this increases the prospect of errors and delays reporting to a head office of a multi-entity organization.
If you're using email and spreadsheets to share information, manual entry and collaboration don't happen in real-time. This will cause further delays if there are late entries or other adjustments required to finish the financial consolidation at the top of a period.
While divisional reporting is simple during multiple database environments, any consolidated reports are often an enormous ordeal. The greater the number of databases being utilized and managed, the greater the consolidation process and therefore, the longer it'll take. By having everything in one database, reporting for the division becomes as convenient as saying for the corporate as an entire. This greatly increases the convenience of periodic reporting and significantly streamlines the time it takes to run year-end.
With many companies trying to scale back costs, solutions like Microsoft Dynamics GP and Multi-Facility Processing can enable users to seek out greater extended usage in Microsoft Dynamics GP. By bridging the gap between Microsoft Dynamics GP and an upgrade to expensive tier-one solutions, this mix promises an excellent value proposition for expanding organizations.
Simplified Day to Day Processing
Day to day processing between databases is greatly simplified within one database. Performing from one place ensures consistent master account coding and may prevent large amounts of your time processing transactions in several divisions of the corporate. Time is additionally saved by eliminating the necessity to check-in and out of every Microsoft Dynamics GP database, a task which may take up to three minutes for every occurrence.