Benefits of a modern day accounting system for a multi-entity organization
Automate inter-entity transactions
According to a study from IBM, only 26% of companies that rely on Excel can close their books in less than seven days. That percentage jumps to greater than 50% for those that automate their process with a modern accounting software solution.
Why does this matter? Most of the CFOs we talk to spend 2-3 days each month creating consolidated financial statements. In addition, their controller has a separate spreadsheet, manually keeping track of inter-entity transactions.
Access to all files from one login
Does this sound familiar?
Example 1: Your CEO asks you, “How much have we spent with Staples so far this year?” Imagine NOT having to login into 4 different QuickBooks files, doing 4 separate vendor look ups, and manually adding them up on your trusted 10-key.
Example 2: Your liability insurance invoice comes through the mail. Accountant 1 writes down the GL codes and splits that are going to each entity, then passes the invoice to Accountant 2 who is responsible for entering in AP invoices for two of the three entities. Accountant 2 then passes it to Accountant 3 to enter the invoice for the final entity, which they are responsible for.
If you are reading this and shaking your head, please breathe a sigh of relief because help is here. A shared multi-entity environment eliminates the need for these manual, paper intensive, time wasting tasks.
- One login
- One vendor file
- One customer file
Automate, Automate, Automate
The biggest sin when talking to the Maner Team is duplicate data entry. By rule, a human should only be entering in data into a system one time. Once it is in one of your systems, we will be able to utilize our middleware software, ManerLink, to pull from one system and push into another system. The one caveat, is that you have to have a modern accounting system, like Sage Intacct or Dynamics GP, which is open enough to have our systems connect to it.
When you need a new financial report, how often are you waiting on IT or your consultants to build your report? Not only should your accounting system have a user friendly report builder, you should only have to build your Master Reports. With a multi-entity shared environment, you create the reports you want your team to see and when they login the data automatically filters to the information that pertains to them.
Upgrading to a modern day accounting system may seem like a daunting task, but when working with the team at Maner Costerisan, we like to say it is like going to Cedar Point. The roller coaster will have its ups and downs, but at the end of it you should be grinning ear to ear.