Sage Intacct – a graceful solution to multi entity accounting software and financial management.
As your company grows and expands organically or through acquisitions, you may face increasingly complex challenges surrounding multiple locations, multiple legal entities and multiple currencies that require the need for business accounting software. Fortunately, Sage Intacct offers solutions to multi entity accounting challenges, while traditional business management software hasn’t kept pace with growing and global companies. Traditional solutions often fail to deliver the sophisticated functionality multi-entity companies need, forcing time-consuming, clumsy and inefficient work-arounds and manual workflows.
Sage Intacct is not a traditional business management application. It is a financial and business multi entity accounting software solution built to handle the complexities multi-entity organizations face. We’ve assembled five common multi-entity and intercompany accounting and financial management challenges, and contrast how inefficiently most traditional accounting applications address each task with how Sage Intacct makes quick, graceful work of multi-entity financial management.
- Intercompany settlements
Intercompany settlements – like due to/due from transactions – come into play frequently in multi-company, multi-entity accounting. They are necessary transactions when, for example, one subsidiary buys or sells inventory or services to another subsidiary, or loans money to another subsidiary. These exchanges must be “settled” because they represent a re-allocation of resources, and if not properly accounted for, would be counted twice in consolidated financials. These types of transactions represent a significant manual effort to track and complete in traditional business management software.
Sage Intacct automates intercompany transactions, and even tracks the intercompany balances and automates the due to/due from entries, keeping the accounting transparent, efficient, accurate and auditable.
You’ll certainly want and need an overall consolidated view of your operations, which can be hard to get. With traditional business management software, you will typically have multiple instances of the software running in parallel, one for each entity, or have each entity in a separate database. When month-end comes, you’ll need to export the relevant reports from each entity into a spreadsheet, where you’ll need to aggregate the data and manually account for any intercompany elimination that may be required. Of course, with all that manual entry and manipulation, there’s ample room for errors, and those reports you created will only be available in Excel.
Sage Intacct provides continuous one-click consolidation, speeding your closing procedures and delivering improved accuracy and better visibility. Plus, every global consolidation includes a detailed journal entry report for easy auditability. Reporting across entities is easy and intuitive, giving you the insight you need. Plus, you won’t need to wait for month-end processing to see the results of your intercompany transactions – Sage Intacct delivers an accurate, up-to-date view at any time.
Whether it’s vendor invoices containing expenses that should be shared between entities or projects, or various overhead and operating expenses that should be distributed across multiple locations or companies, most multi-entity organizations are performing allocations. In a traditional business management software application, you’re working within a single company, and all the transactions you enter and maintain are specific to the single company that’s active. Allocations are typically handled as general ledger entries in each of the affected company files. It’s a manual, tedious, repetitive process.
Sage Intacct provides a sophisticated and elegant solution to allocations, allowing you to allocate transaction amounts across multiple companies, and multiple dimensions, at the point of data entry. If you have routine, monthly allocations, a standard allocation function makes quick work of these types of transactions.
- Currency conversions
Once you’ve gone global, you face the challenge of accounting in multiple currencies. Many traditional business management software applications do not offer any multi-currency support at all, and in those that do, the work involved is extensive, repetitive and may still not deliver the corporate data you need in a timely, compliant fashion.
Sage Intacct uses up-to-date exchange rates to create your currency conversions and revaluations. It gives you instant access to information on currency gains and losses. And it allows you to produce reports in the corporate currency or in each entity’s local currency. What’s more, Sage Intacct provides ASC 830/FAS-52-compliant multi-currency consolidation and a system that creates cumulative translation adjustments (CTAs).
- Shared master files
Chances are, the various entities or locations in your multi-entity organization share a few commonalities – some of the same vendors and customers, a similar chart of accounts, and maybe even a bank account or two. Traditional business management software was slow to recognize this reality, forcing you to set up these master files multiple times for each entity.
Setting up new entities in Sage Intacct is quick and easy. New entities can have unique definitions, or inherit your existing lists, process definitions and chart of accounts. It is almost effortless to add additional entities to a Sage Intacct organizational structure.
Are you growing and facing some of the accounting challenges of a multi-entity organization? Sage Intacct is a graceful intercompany business accounting software solution capable of streamlining and supporting your growing, dynamic operation. We invite you to start the discussion with one of our Sage Intacct specialists.