Companies in the modern business world generally have a network of subsidiaries and affiliates spread around the globe. Intercompany transactions add another layer of complexity to the already time-consuming task of managing the financial operations of these organizations.
Sage Intacct’s Multi-Entity/Intercompany functionality is a potent tool for handling this since it streamlines financial administration across numerous businesses, increases transparency, and boosts productivity. This article will discuss Sage Intacct’s Multi-Entity/Intercompany capability and its advantages and capabilities. So, keep reading to know more.
● Financial Statement Consolidation
The capability of the Multi-Entity/Intercompany functionality to integrate financial data from several businesses is a significant benefit. Sage Intacct makes it simple to compile unified financial reports that cover your whole company. Financial performance may be examined and compared amongst entities, and strategic choices can be made with the use of these reports. Sage Intacct reduces the need for time-consuming and error-prone manual data consolidation by centralizing financial data in one place.
● Transparency Between Organizations
Sage Intacct makes it easy to see and evaluate financial operations between companies or “intercompany transactions.” You may check account balances and see who owes you money and who owes you cash across companies. This kind of openness helps track inconsistencies, reconcile intercompany finances, and keep honest books. In addition, Sage Intacct supports an audit trail that may be used for internal and external audits to guarantee compliance.
● Eliminations Between Companies, Automated
To minimize double-counting or skewed financial results, intercompany transactions must be eliminated prior to compiling consolidated financial statements. During consolidation, intercompany transactions are automatically deleted in Sage Intacct. This ensures that the numbers in the close financial accounts are correct and not skewed. Sage Intacct helps save time, increase accuracy, and boost confidence in financial reporting by automating intercompany eliminations.
● Allocations Between Companies
Sage Intacct makes Automated intercompany allocations possible, making it much easier to divide expenses and income shared across companies. Distribution rules might be defined in percentages, set quantities, or formulae. The system uses these criteria to assign costs or benefits automatically, doing away with tedious computations and the associated error rate. This function improves cost management across organizations by providing precise cost allocation, increasing transparency, and facilitating improved cost management.
● Access Controls and Data Protection
Sage Intacct’s Multi-Entity/Intercompany functionality offers robust security and authorisation options. Users’ rights and access to entities may be managed according to their assigned roles. This restricts access to private financial data to just those who need it. Sage Intacct’s rigorous security safeguards ensure all users’ data remains private and unaltered.
To sum up,
Sage Intacct’s Multi-Entity/Intercompany function is an excellent resource for companies with several branches or subsidiaries who need to coordinate their financial activities. It streamlines financial reporting, increases transparency, and simplifies consolidations and other intercompany operations. By using this functionality, businesses may benefit from improved efficiency, fewer mistakes, and more data-driven strategic choices. Sage Intacct’s Multi-Entity/Intercompany functionality enables enterprises to effectively handle intricate financial arrangements, which is crucial for thriving in the modern economy.
