Multi-Entity Solutions to Single Ledger Problems- Inaccuracy
Posted on: August 14, 2014 | By: Jim Bertler | Intacct
In our last article we reviewed multi-entity accounting software issues and how it could consume valuable time. In this article we will explore the inaccuracies that can be caused by a poorly designed multi-entity solution.
Whether you are maintaining a business with a variety of specialties or running a multi-national corporation, you can never expect your business to reach its full potential while operating within a disconnected single ledger system. While accuracy in accounting is essential, you are bound to receive inaccurate results when using a single ledger system for multiple entities. Properly trying to administer inter-company transactions across each individual division means trying to coordinate each transaction accurately at all times. Balancing multiple segments and entities within separate accounts means looking in a wide variety of places for a wide variety information. Forcing yourself to remember which account is where, what account needs to be worked on and which different accounts need to be complied triggers results that are more than likely seeping with inaccuracy. Plus, as you try and run consolidated reports for multiple books, within multiple entities within multiple databases information is more than likely to get entirely mixed around.
With Intacct’s multi-entity accounting software, accuracy is improved tremendously which makes your accounting processes entirely less stressful. With multi-facility processing, intercompany processing is automated, improving accuracy tremendously. Plus running multiple books within multiple entities is a breeze as you are able to see views of cash vs. accrual accounting simultaneously. With all of your entities in one space your database becomes entirely organized, increasing accuracy tremendously and allowing you to focus more on your company’s growth and expansion.
Do not let inaccurate results within a single ledger system debilitate you.