Does your organization need multi-entity accounting practices? If it does, or if you’re starting to ask yourself that same question, you’ve come to the right place. In this blog, we’ll help you understand what multi-entity accounting is, when you need it, and how an AP automation solution can help you ensure you do it right.

What is multiple-entity accounting?

Multi-entity accounting is the process of managing financial records for more than one entity within a single organization. This includes tracking income and expenses for each entity, creating separate financial statements, and ensuring compliance with legal and tax requirements.

When do you need multi-entity accounting practices? 

Multi-entity accounting practices mostly apply to complex businesses that operate as a conglomerate, parent company, or holding company with several subsidiaries. But even businesses that operate as a single entity could need multi-entity accounting practices, if they have regional offices or segmented departments that are treated as separate entities by the accounting department.

Businesses can quickly move from a single- to multi-entity enterprise through geographic expansion, acquisitions, or even rapid departmental growth. If a business is on a high-growth trajectory, it's important to think about the implications of moving to a multi-entity accounting model and how that will affect any accounting technology choices down the line.

How to choose the right AP automation solution for multi-entity accounting

AP automation is essential for multi-entity businesses, especially since accounting is a data-driven field. Multiple entities mean even more complexities and potential risk for error. 

With AP automation, you can eliminate a lot of that risk by avoiding manual data entry processes and clunky, paper-based workflows. AP automation offers efficiency, effectiveness, and accuracy that can empower your entire accounting team. 

When choosing an AP automation solution, it's important to consider the scalability of your company and how your accounting processes will change as you grow. You’ll want to look for flexible solutions that offer the following key functions:

• Multi-entity database management
• Centralized data dashboards
• Robust reporting and searching
• Transparency and visibility across end-to-end processes
• Customizable user controls to maintain division across entities 

Let’s explore each one in greater detail.

Multi-entity database management

Multi-entity database management allows an organization to manage financial records for more than one entity within a single database. This means that the organization can track income and expenses for each entity, create separate financial statements, and ensure compliance with legal and tax requirements in a more efficient and accurate manner.

As an accounts payable automation solution, Quadient AP by Beanworks is well-equipped to manage multi-entity databases, even when those entities each use different accounting software. Quadient AP can accurately export all AP transaction data from all entities and then consolidate that data into a single view, thanks to our ability to integrate seamlessly with popular accounting systems including Sage, QuickBooks, Intacct, Rent Manager, Northstar, and more. Check out a full list of our integrations.

Centralized AP data

Centralized AP data allows businesses to have greater visibility and control over their financial data across all entities. With a centralized dashboard view, accounting teams can monitor and take immediate action on invoices and payments without having to log in and out of multiple systems. 

Quadient AP facilitates this centralized view so that users don’t have to log in and out to access each entity’s AP data. This functionality will streamline workflows and increase team efficiency so that time can be spent on crucial AP tasks instead.

Robust searching and reporting

Multi-entity reporting and searching functionality is crucial to simplify complex tasks like account reconciliation and variance analysis. This level of completeness ensures that companies maintain compliance with legal and tax requirements while making informed business decisions.

Multi-entity reporting and searching are built into the Quadient AP experience. You can rely on the accuracy and completeness of your AP data, making account reconciliation and variance analysis much simpler. No matter how complex your business gets, Quadient AP sets you up to get a full picture of your financial health.

Divisions across teams, departments and companies

Maintaining division across teams, departments, and companies is important for multi-entity accounting practices for several reasons:

1. It helps to ensure data accuracy and security by limiting access to only the individuals who need it.
    
2. It helps streamline accounting workflows and reduces confusion and errors caused by multiple people working on the same set of financial data.
    
3. It simplifies financial reporting and analysis by allowing each entity to be tracked and analyzed separately. 

Quadient AP by Beanworks offers customized user controls, allowing for user-level permissions across teams, departments, and companies. You can rest assured that only those team members who need it will see relevant transaction data. At the same time, you can also create high-level administrative or executive views to give specific decision-makers or key team members broader access based on their specific needs or tasks.

Are you ready to automate?

Not all AP automation tools are created equal. When you’re ready to make an investment to move your organization forward, it’s important that you choose a product that can handle all of your specific needs and desired outcomes.

Quadient AP is the solution you’re looking for. As a flexible and robust AP automation tool, it’s ready to help you manage your single or multi-entity accounting practices, and support your organization where it’s at today as well as into the future. Book a demo today with an AP specialist to see if Quadient AP is right for you!