Why do multi-entity firms need to pay attention to cloud accounting?
Multi-location organizations face complexities—decentralized payables, inter-entity transactions, multiple currencies, global consolidations—that require a purpose-built financial management system. Whether your business is global or domestic, simple or complex, now you can close the books faster and gain the visibility you need even as your operations grow and evolve. Today’s multi-entity organizations are pushing to gain quick consolidated insights – to make better enterprise-wide decisions.
Cloud accounting is the way.
Cloud accounting software products vary in complexity and features offered, with many products designed for use by companies of a certain size, such as enterprise-level businesses or SMBs. Depending on the scale of the solution, features for payroll, time tracking, or expenses are easy to utilize. Cloud computing has increasingly become a solution for organizations. It’s an innovative and increasingly popular model of software deployment that offers enterprise-class software function without traditional up-front infrastructure costs or the unpredictable support and maintenance costs of on-site software and hardware – from infrastructure to security to personal productivity to workflow.
Cloud accounting software leverages cloud hosting on remote servers, similar (Software-as-a-Service (SaaS) models, but with the flexibility, scalability and collaborative force of working in the cloud. With cloud accounting, finance teams can benefit from real-time reporting and visibility throughout an organization, with mobile collaboration empowering teams to keep accounts balanced, accurate and updated any time, any day and from any location – accounting efficiency and transparent financial management never stop. With cloud accounting, multi-entity operations have the opportunity to:
- Get quick and accurate closes with automated consolidations: Ensure your financial statements are ready when you are, and close the books effortlessly. Comprehensive automation with one-click consolidation delivers accelerated closes, improved accuracy, and better visibility. Plus every global consolidation includes a detailed journal entry report for easy audit-ability.
- Easily manage multiple currencies: Everything related to managing multiple currencies is automated to save you time and increase accuracy. You’ll use up-to-date exchange rates for currency conversions and revaluations, and instantly access information on currency gains and losses. You can also produce reports in your headquarters’ currency or the entity’s local currency.
- Save time and effort with simple setup and maintenance: Quickly set up policies, procedures, workflows, and reporting for new entities regardless of the complexity of your multi-entity structure. Easily configure each new entity with unique definitions. Or automatically “inherit” centralized definitions—workflows, charts of accounts, period definitions, and lists—across entities for a standard, organization-wide configuration. You can also opt for automated inter-entity transactions with manageable rules, making it easier to centralize payables and receivables.
- Take advantage of fast, flexible reporting: Quickly produce accurate financial reports, regardless of your organization’s complexity. Get insights from real-time visibility with instant roll-up reporting (single currency) or push-button consolidations (multiple currencies). Easily switch between consolidated and local views for further insights into the figures. And tailor local account titles to fit local regulations.
Today’s leading solutions, such as Sage Intacct, deliver real-time business visibility via easy to create dashboards and reports.
Comprehensive financial consolidation, reporting, and analysis across multiple business entities. Anywhere, anytime expense report submission, approval, audit, and reimbursement, increasing visibility into your company’s travel and expense spending patterns. Plus, an increased cash flow due to on-time payments and shorter sales cycles. As companies grow, they need to manage more clients, transactions, and currencies. Cloud accounting software solutions, such as Sage Intacct, can help businesses scale quickly and easily to meet growing operational demands.