Your outdated consolidation accounting process shouldn’t stop you from scaling your business. Unfortunately, when people start expanding and acquiring other companies or diversifying their services, their accounting struggles. Companies reluctantly discover their QuickBooks accounting software lacks the support and flexibility to grow. Or maybe they’re a part of the 50% of small businesses that don’t own an accounting software system and that’s causing some serious impediments.
If you’re eager to grow your business and need a more efficient way to close the month-end, you’ve come to the right place. Let’s explore how, with the right accounting software technology and built-in domestic, global, and advanced consolidation accounting methods, we can make the monthly financial process faster & easier to manage, and free up your team for more strategic activities.
Growing a business globally adds even more complexity to entity consolidations, especially when transacting in multiple currencies and managing different compliance regulations.
Calculating currency conversions manually in excessive spreadsheets eat up time and resources, and you can pretty much bank on DIY processes being filled with errors. Inefficient processes can cost up to a third of your revenue… every year. If you’re a small business looking to expand, that’s not something you can afford. Fortunately, there’s a better solution for streamlining and consolidating multi-entities and that is our friend Sage Intacct.
Change seems to happen more often than we change our socks these days. To accommodate the changes with today’s business requirements, Sage Intacct’s consolidation platform gives you the flexibility to update and re-consolidate a past consolidated period.
The multi-entity consolidation accounting process and preparing elimination entries are simplified because Sage Intacct offers its users the choice of three different consolidation methods: Domestic Consolidations, Global Consolidations, and Advanced Consolidations. Stay with us because this is where it gets good…
Sage Intacct’s unified platform is designed with multi-entities in mind. Just like it sounds, domestic consolidations allow companies to consolidate across a single base currency to drive a more accurate and faster close with auto-eliminations for inter-entity transactions. You can drill down and produce consolidation journals for easy traceability and reporting transparency AND to better understand your consolidated numbers at a glance. With Sage Intacct, you’ll have a more streamlined consolidation group reporting for AP, AR, and general ledger entries, on any location or entity, so you know exactly what was consolidated off your journal.
This is the pinnacle of Sage Intacct’s consolidation accounting methods. When managing a business that has multiple entities with multiple base currencies, and if you need to have consolidated reporting, then you’ll use the global consolidation method. With this process, each entity can have a different base currency, and each entity can have its own virtual accounting subsystem. However, there is only one underlying accounting system shared by all entities in the company, keeping your financials clean and clear.
The consolidation process translates from the base currencies to the consolidated reporting currency, so you don’t have to exchange currencies manually. The entities can be grouped into consolidation books using any logical grouping that makes sense for your company. For example, you might want to group entities by region, by executive reporting structure, by business unit, or by any other grouping in which multiple currencies must be reported in a single currency.
We hope you’re still with us because there’s more… Additionally, each consolidation book (Customer and Vendor Aging, G/L Trial Balance, GL, etc.) has a dedicated elimination entry in which journal entries are automatically created to eliminate (net to zero) any inter-entity transactions.
Scalability is key in an ERP system, and as your business changes, Sage Intacct wants to stay a part of it. The last method of Sage Intacct’s powerful global consolidations is their Advanced Consolidations. This method only applies in a multi-entity distributed environment where the chart of accounts can’t be shared because each entity has a totally different chart of accounts. Although not common, this method is there if you need it.
Congratulations, you’ve made it this far! Accounting talk can be a bit heavy, so kudos for making it to the end. Running consolidations in Sage Intacct is easier than you think, and much less painful than struggling with labor-intensive manual processes or an accounting software solution you’ve outgrown. Technology solutions like Sage Intacct, play such an important role in a tech stack that 77% of businesses said that they will struggle to survive without their technology platforms. So, give us a call to explore other reasons why making the switch to Sage Intacct can streamline your consolidation accounting processes.
Having a hard time picturing the benefits? Check out our screenshots below so you can get a better idea of what you can do with Sage Intacct Consolidations in your business.
Simply pick the Entities and the Period you want to consolidate.
Specify the Ending Spot/Weighted average rate