Every company wants to grow and expand its operations into different products and regions. However, not all organizations can meet the system requirements to manage their growth effectively.
Implementing an integrated ERP and accounting solution is the best approach to achieving coordination and maximizing efficiency. This system ensures your CFO runs each department effectively while providing access to each unit’s data across the entire organization.
Here is how to maximize efficiency when managing a multi-entity organization using Xledger and GoldFinch ERP.
Multi-Entity Organization Defined
Any business with different divisions, brands, branches, units, or entities is multi-entity. A parent company must oversee all operations despite each unit operating with a high degree of independence.
The biggest challenge for multi-entity companies is they rarely grow as one cohesive unit. There are dozens of uncontrollable factors playing a significant role in the success of each area, which affects growth. A company can become multi-entity when:
- It opens international branches operating under different regulations, laws, and culture
- It absorbs other entities through mergers and acquisitions
- It has internal units that operate independently on issues like accounting
What’s the Role of ERP and Accounting Software in Multi-Entity Organizations?
Integrating your muti-entity accounting system with GoldFinch ERP gives your team several advantages. The configuration achieved is a powerhouse that can help manage all accounting functions of different facilities on one platform.
A software package like this provides a range of functionalities for multi-entity organizations, and they include:
Multi-agency companies must keep track of their financial objectives by evaluating each unit’s revenue and expenditure. Typically, each entity must review its financial records, run reports, and forward them to the CFO.
Implementing an ERP and accounting solution in your operations allows you to automate data consolidation. The software gathers the accounting information of all business units and keeps them safe in centralized storage. Centralizing your financial data also builds a link between the different teams and the parent company’s accounting systems.
Combining ERP with accounting software also provides your team with advanced reporting features. For example, the CEO might want to know the performance metrics of a specific product. A company with geographically divided business units without consolidated accounting systems will have difficulty getting this information.
With multi-entity software, you can access all that data in a centralized location. All you need is to set the parameters for your research, and the module will generate an accurate and insightful data report.
Wanting to know how much money is in the business’s account might seem simple until you have to deal with multiple units using different currencies. Considering dozens of currencies have fluctuating exchange rates, you might need some assistance.
The ideal ERP/accounting solution should support currency reconciliation to simplify financial operations when multiple currencies. The consolidating reporting systems will make the necessary conversions as per the current market prices and provide a global view of your data.
A multi-entity organization is better positioned for financial success when it finds a way to consolidate its accounting functions. It is because accounting is at the core of every business and intertwines with almost every other process in the company.
For example, if your company has a joint procurement function that makes all necessary purchases and distributes them to each operating business unit. Not having a collaborative system means doubling the work in accounting and documentation. You can achieve an intercompany financial system by implementing ERP accounting software to link your internal systems.
Accounting Principles Compliance
The accounting department deals with different sets of books, from tax reporting to internal reporting. It becomes more complicated when the company’s units operate under other accounting principles and tax laws in multiple jurisdictions.
If the units have independent accounting systems, you must execute each set of rules separately. A consolidated accounting function allows your team to share raw data and run multiple reports automatically.
Why Xledger and GoldFinch ERP?
Xledger is an effective accounting platform that maximizes financial efficiency while providing all businesses room to grow. Over 10,000 businesses in over 60 countries rely on Xledger to unlock their financial goals.
Pairing it with GoldFinch allows multi-entity organizations to expand without limits. GoldFinch helps interlink the various departments and inventory, while Xledger automatically consolidates and analyzes accounting data.
All multi-entity should get to experience the Xledger and GoldFinch combo, and here is why:
Helps Keep Up with Financial Data
Keeping up with the financial data of different entities when managing complex or multi-entity firms is not an easy responsibility for managers. Many managers prefer implementing ERP with accounting software to help maneuver these accounting challenges. The solution provides access to real-time financial data and reports across the different systems and automates multiple currency operations.
Provides More Control
Multi-entity organizations are primarily large, complex, and established firms. Implementing Xledger and GoldFinch will provide a more comprehensive overview of your accounting system and products, giving you more control over internal operations.
It also provides real-time access to consolidated financials with specific details on each entity. With Xledger and GoldFinch, you have:
- More transparency in your multi-entity’s financials
- Easy revenue and expense monitoring for all operating units
- Comprehensive overview of your organization’s total cash position, unpaid bills, and balance
- Local transactions history and financial status
Xledger grows with your business, equipping you with all you need to add new business and potentially acquire other companies. Pairing it with GoldFinch allows you to share product, materials, and inventory information across the different areas of your multi-entity organization. The two also promote seamless operations in your organization while cutting down IT expenses to improve efficiency.
GoldFinch and Xledger are global products. According to Xledger’s website, the platform supports over 22 languages and all international currencies. This combination is the perfect approach for multi-entity companies to achieve a flexible currency management system.
Although managing a multi-entity organization is challenging, there are several approaches to maximizing efficiency and productivity. Most companies opt for a powerful ERP and accounting configuration to help consolidate the different accounting and business processes.
Contact us to learn more about how Xledger and GoldFinch create a powerful configuration to automate your processes and provide insights for heightened scalability.