Is QuickBooks Limiting Growth for Your Multi-Entity Organization?
If you're trying to make QuickBooks work for your growing multi-entity company, you've likely struggled with the accounting solution's lack of complex capabilities. QuickBooks works well for small businesses up to a certain point, but once an organization begins adding entities, it's often time to consider upgrading to a new financial accounting solution. We've previously discussed 4 major limitations of QuickBooks for multi-entity accounting. In this blog, we're delving into some additional multi-entity accounting functionality that QuickBooks can't perform. Have you struggled with any of the following?
1. Building Custom Reports
With QuickBooks, building reports can be difficult enough with just a single entity and one set of reporting requirements. Once you have multiple entities, each with a separate set of reporting requirements, it becomes impossible to create reports without resorting to manual spreadsheets. With a more robust financial accounting solution, you can build custom reports to meet the exact requirements of each entity. Unlike in QuickBooks, a quality multi-entity accounting solution will allow you to easily build reports using multiple dimensions to track the metrics that matter most to you.
2. Working in Multiple Currencies
QuickBooks can't process transactions in multiple currencies, which means you have to manually convert each transaction to your base currency before entering it into the system. With a multi-entity accounting solution, each entity can operate in its local currency, and automated currency conversion makes it easy to perform consolidations and gain financial insight.
3. Different Chart of Accounts for Each Entity
In QuickBooks, you can only set up one chart of accounts. This might work fine for some multi-entity businesses, but many find themselves using separate instances of QuickBooks in order to create a chart of accounts for each entity. This makes consolidations take countless hours as you manually combine data from each instance of QuickBooks into sprawling spreadsheets. With a financial accounting solution intended for multi-entity use, you can set up one chart of accounts or multiple – the system is designed to handle as many as you need.
4. Inter-Entity Transactions
Whether you're using one instance of QuickBooks or multiple, inter-entity transactions are difficult to properly create and track while complying with accounting regulations and auditability requirements. With a more robust accounting solution designed for multi-entity businesses, it's easy to properly create transactions between your entities in a way that meets your requirements, provides financial and operational insight, and complies with regulations.
5. Real-time Dashboards
Although QuickBooks does technically offer dashboards, the lack of multi-entity accounting capabilities within the system means these dashboards will be unable to show detailed metrics that matter to users within different levels of your organization. With a financial accounting system designed for multi-entity organizations, it's easy to create customizable, real-time dashboards that show each user the level of data which matters most to them, whether that's KPIs within a specific department of a specific entity, or a big-picture view of the entire organization.
Time for an Upgrade?
Is QuickBooks' functionality simply not adequate for your growing organization? Don't let it limit your growth any longer. An accounting solution such as Sage Intacct offers multi-entity accounting that automates consolidations and reporting while providing complex, real-time data via dashboards. If you're interested in learning more about upgrading from QuickBooks to an accounting solution built for multi-entity management, contact The Resource Group to learn more about whether Sage Intacct might be a good fit for your organization.