As the business gets bigger and expands, sometimes managing finances across multiple entities is far from straightforward. Traditional accounting systems don’t really fit companies that operate across a number of locations or with multiple business units. And this is where the use of multiple business accounting software will come into play. Specialized software keeps financial management across multifarious entities simple. In this article, we will be going over the top features of accounting software to use in operating multiple businesses.
Multi-Entity Support
Multi-entity support is very important for the management of several businesses. It helps a businessperson to keep the records of each unit of the business running separately on one system. This feature also sets up a different account for each unit and tracks its performance individually. This feature will also provide the consolidation of reports with much ease, hence giving a complete view of the functions of all your businesses without juggling between various systems.
Good software will enable you to move seamlessly between the various entities without having to log in and out. This saves time and keeps it all streamlined so that you can focus on growing your business.
Consolidated Reporting
Consolidated reporting is integral to any corporation operating more than one entity, pulling the financial data of all entities into one report constantly. This allows an overall picture of the whole organization to be developed. Such consolidated reporting enables you to analyze overall performance, profitability, and trends in a quick and easy manner.
The best accounting software will enable you to create consolidated balance sheets and consolidated income statements, as well as cash flow reports, all in one place, making tracking of finances easier to handle, rather than manually combining numbers that lead to errors.
Intercompany Transactions Management
It is quite a complex process to handle transactions between business units, especially when they are handled manually. Intercompany transaction management is provided by many business accounting software, which nowadays makes it easy to handle. It will automatically record and reconcile the transactions between your entities for the complete elimination of errors, hence saving you time.
This is a significant factor if there are frequent transfers of goods, services, or funds within your companies. It helps to ensure that each transaction is correctly captured on both sides with your books remaining balanced while, at the same time, reducing the chances of mismatch discrepancies. Ensure software allows for easy intercompany billing and reconciliation in case entities depend on each other for resources or support.
Multi-Currency Support
Having your business run internationally or dealing with several types of currencies means multicurrency support becomes the must-have feature. This feature supports the management of respective transactions in different currencies and their correct conversions. It is able to manage a full range of various currencies’ exchange rates and allows them to perform their automatic application to your records and update them in real-time to keep records accurate.
This further extends multi-currency reporting. It allows one to consolidate financial statements from different regions, usually operating in different currencies. In fact, this is absolutely indispensable for international business expansion or clients and suppliers across the world.
Automated Consolidation
Automated consolidation is a powerful tool to have for organizations with multiple entities. They enable you to consolidate financial information from each of the individual entities without having to manually input or manipulate data. With automated consolidations, you can create reports much faster and with greater accuracy.
This feature becomes essential for larger organizations that possess complicated structures. Automated consolidation saves time and resources and also reduces the chances of human error, thus enabling one to prepare better for audits, compliance checks, and internal reviews.
Centralized Dashboard
A centralized dashboard is one of the key features provided by many business accounting software options. You get a clear overview of the financial health of each business; that way, you can understand performance, review major metrics, and detect any potential issues.
Ensure the dashboard is user-friendly and customizable; this way, a focus can be made only on the data that really matters.
Role-Based Access and Permissions
Security becomes quite vital when there are several entities dealing with financial data. The accounting software shall provide you with role-based access and permissions. This way, you can decide who has the right to view, edit, or manage the financial information of each entity.
Sensitive data are available only to authorized people, which prohibits unauthorized changes or errors. You can subject your team members to different roles like an accountant, manager, or auditor with varying permissions. Find software that allows you to customize such access levels with the greatest ease and allows detailed audit trails.
Compliance and Tax Management
Compliances and taxation are bound to be more difficult to handle when you deal with a number of entities. Each of these may fall under a different set of legislation, so it is very important to select the software that will help you stay compliant by offering tax management tools and tracking compliances.
Good multi-business accounting software allows setting up various tax rates and reporting requirements, one for each entity. It keeps the records of tax correctly and provides timely filing, thereby avoiding penalties and helping maintain good standing. The right software can also keep you updated with regulatory changes that make it easiest to comply with evolving standards.
Customizable Reporting
Each business has its own peculiarities in reporting. Customizable reporting means you can create reports that meet your business goals and serve particular purposes. This feature becomes of utmost importance when a business setup has to deal with several entities, each having different insight requirements.
Customizable reporting means you can choose the metrics at which, as well as the data on which, to report, making tracking for your KPI or financial goals a whole lot easier.
Integration with Other Business Tools
Most business accounting software should integrate with other tools used in CRM and ERP systems to payroll. This allows data across platforms to fluidly interact, keeping the amount of manual entry low and erroneous entries well down.
With integrated tools, you have the ability to synch up financial information across your business, keeping everyone aligned with each other. That feature will simplify operations: track expenses more easily, manage projects, and forecast budgets across multiple entities.
Cloud-Based Access and Scalability
The majority of accounting business software requires a solution based on the cloud. With Cloud-based access to a cloud solution, your team can work anywhere. This would enable flexible options and remote collaboration. In addition, these solutions update your software automatically for new updates, ensuring that it stays up-to-date and secure.
Not less important is scalability. While your organization is growing, you will be adding new business units, and your software should grow with you. Look for a solution able to handle increasing data volume and be adaptable to new needs.
Streamlined Accounts Payable and Receivable
Managing accounts payable and accounts receivable of more than one business involves much complexity. The right software makes it easier by bringing in tools to trace incoming and outgoing payments, automated reminders, and deadlines.
Once accounts payable and accounts receivable are automated, multi-entity cash flow management will become effortless. You can stay on top of outstanding invoices to keep relationships with suppliers positive and avoid late fees.
Mobile Access
Mobile access is an important feature in today’s fast-paced environment. With mobile access, one may view financial data, approve transactions, and check reports from anywhere, utilizing a smartphone or tablet.
It is an important feature for businessmen who are always on the go. Mobile access provides a greater degree of flexibility and means through which connecting with financial data may be easier in case you are away from the office.
Support and Training Resources
Efficient support means your team will solve problems in a very short time and, hence, minimize cases of downtime. Consider selecting an accounting software company that offers 24/7 support, training resources, and onboarding assistance.
Quality training materials, like video tutorials and user guides, make it easier for your team to learn the software and use it effectively. By selecting a software vendor offering solid customer support and training resources, you ensure a smoother implementation and full benefit of the software.
Conclusion
The selection of proper multiple business accounting software is very vital to larger companies that deal with more than one entity. Pay attention to key features such as multi-entity, consolidated reporting, intercompany transactions, and multi-currency handling. Go for software that has strong security, mobile access, and good integration to ensure a seamless and operational experience within all the aspects you have in your different businesses. The right accounting software saves you time by adding accuracy to your work and growing your business in the process.
