When it comes to managing the finances of multiple entities, whether it be multiple businesses or multiple branches of the same business, choosing the right accounting software can make all the difference. With so many options available on the market, it can be overwhelming to determine which software is the best fit for your needs. That’s why we’ve put together this comprehensive guide to help you navigate the world of accounting software for multiple entities.
Key Features to Look for in Accounting Software for Multiple Entities
Multi-Entity Support
It may seem obvious, but the first thing to look for in accounting software for multiple entities is multi-entity support. This means that the software is capable of managing the finances of multiple entities, whether they are separate businesses or branches of the same business. Make sure to check the number of entities that the software can support, as some have limits.
Consolidated Reporting
Consolidated reporting allows you to view the financial information of all your entities in one place. This is an essential feature for anyone managing multiple entities, as it allows you to get a big-picture view of your finances without having to manually compile data from each separate entity.
Inter-Entity Transactions
If you have multiple entities that need to make transactions with each other, inter-entity transaction support is a must-have feature. This allows you to easily move money between entities and keep track of the transactions in your books.
Customizable Reporting
Not all businesses are the same, which means that not all businesses need the same financial reports. Look for accounting software that allows you to customize your reports to fit your specific needs. This will save you time and make it easier to get the information you need to make informed financial decisions.
Scalability
If you plan on growing your business in the future, it’s important to choose accounting software that can grow with you. Make sure to choose software that is scalable and can accommodate additional entities and users as needed.
User Permissions
If you have multiple users accessing your accounting software, user permissions are a must-have feature. This allows you to control who has access to what information within your software, ensuring that sensitive financial information stays secure.
Top Accounting Software for Multiple Entities
1. NetSuite
NetSuite is a cloud-based accounting software that offers robust multi-entity support, consolidated reporting, inter-entity transactions, and customizable reporting. It also offers scalability and user permissions, making it a top choice for businesses of all sizes.
2. QuickBooks Enterprise
QuickBooks Enterprise is a popular accounting software that offers multi-entity support, consolidated reporting, inter-entity transactions, and customizable reporting. It also offers advanced inventory management and user permissions, making it a great choice for businesses that need more than just accounting software.
3. Xero
Xero is a cloud-based accounting software that offers multi-entity support, consolidated reporting, inter-entity transactions, and customizable reporting. It also offers over 800 integrations with other business applications, making it a great choice for businesses that need to connect their accounting software with other tools.
4. Sage Intacct
Sage Intacct is a cloud-based accounting software that offers robust multi-entity support, consolidated reporting, inter-entity transactions, and customizable reporting. It also offers advanced revenue management and user permissions, making it a great choice for businesses that need more advanced accounting features.
5. Zoho Books
Zoho Books is a cloud-based accounting software that offers multi-entity support, consolidated reporting, inter-entity transactions, and customizable reporting. It also offers project management and user permissions, making it a great choice for businesses that need to manage both their finances and projects.
FAQ
What is multi-entity support?
Multi-entity support refers to the ability of accounting software to manage the finances of multiple entities, whether they are separate businesses or branches of the same business.
What is consolidated reporting?
Consolidated reporting allows you to view the financial information of all your entities in one place.
Why is inter-entity transaction support important?
Inter-entity transaction support is important if you have multiple entities that need to make transactions with each other. It allows you to easily move money between entities and keep track of the transactions in your books.
What is customizable reporting?
Customizable reporting allows you to create financial reports that fit your specific needs.
What does scalability mean?
Scalability refers to the ability of accounting software to grow with your business.
Why are user permissions important?
User permissions are important for controlling who has access to sensitive financial information within your accounting software.
What is cloud-based accounting software?
Cloud-based accounting software is software that is accessed over the internet, rather than installed on a local computer.
What is the best accounting software for small businesses?
The best accounting software for small businesses depends on the specific needs of the business. However, all of the software listed in this guide are great options for businesses of all sizes.
Pros
Choosing the right accounting software for multiple entities can save you time and make managing your finances much easier. With features like multi-entity support, consolidated reporting, and customizable reporting, you can get a big-picture view of your finances and make informed financial decisions. Additionally, many accounting software options offer advanced features like inventory management and project management, making them a great choice for businesses that need more than just accounting software.
Tips
- Before choosing accounting software, make a list of the features that are most important to your business.
- Consider the scalability of the accounting software, as you may need to add additional entities or users in the future.
- Look for accounting software that offers integrations with other business applications that you use.
- Read reviews and ask for recommendations from other business owners to find the best accounting software for your needs.
Summary
Choosing the right accounting software for multiple entities can make managing your finances much easier. Look for software with features like multi-entity support, consolidated reporting, and customizable reporting. Consider the scalability of the software and look for user permissions if you have multiple users accessing your software. NetSuite, QuickBooks Enterprise, Xero, Sage Intacct, and Zoho Books are all great options for businesses of all sizes.