What is multi-entity accounting?

Multi-entity accounting is keeping the books for several legal entities, often in different countries and currencies, in a way that lets each entity report on its own and the group report as one. It is the point at which small-business accounting software usually runs out.

Definition

Second legal entity or currencyTrigger

ERP and general ledgerCategory

14Vendors profiled

Each entity needs its own ledger, tax treatment and statutory accounts; the group needs a common chart of accounts, intercompany accounting and consolidation. QuickBooks and Xero handle one entity per file, so groups either run many files and consolidate outside, use a layer such as Translucent that sits across the files, or move to a multi-entity system: NetSuite, Sage Intacct, Business Central, or the AI-native ERPs built for exactly this transition.

Common questions

When does a company need multi-entity accounting software?+

Usually at the second entity, the first foreign subsidiary, or when consolidation in spreadsheets starts taking days. Many companies delay it and pay in close time.

What is multi-basis accounting?+

Keeping the same transactions under more than one accounting standard, for example US GAAP and a local GAAP, or cash and accrual. Some multi-entity systems support it natively.

Which vendors specialise in multi-entity?+

NetSuite and Sage Intacct among incumbents; Rillet, Campfire, Light and Lensing among AI-native ERPs; Translucent and Nominal as layers over existing ledgers.