Accounting software is a crucial component of maintaining financial records for every business. There are various reasons for adopting accounting software to effectively monitor and manage funds, from entrepreneurs directly to accountants.
One of the benefits of multi-company accounting software is that it allows you to have a centralized posting of financial data so that other branches or entities can view and keep track of other branches.
This article includes some of the best multi-company software numerous enterprises have extensively adopted.
What Does Multi-Entity Company Accounting Mean?
A company is said to be a multi-entity company if such a company has a significant share in another company and has a voting right in that company. This can happen when the company acquires another company by merging, outright acquisition, or establishing an office abroad. And such an international office must exist under an independent structure. In accounting, terms like parent, conglomerate, or holding company describe multi-entity companies.
A company can be described as a parent company if it has a significant controlling interest in another company. Parent companies are usually created by merging, acquiring, or creating a subsidiary from the larger companies.
A holding company is usually formed to acquire and control shares or ownership interests in other companies. The primary purpose of a holding company is not to produce, sell or carry out any business operations. The idea behind his business type is to hold the other company’s stock and have controlling power in the company’s decision-making process.
A conglomerate has business operations across multi-faceted industries but under one organizational arm. A parent company and multiple subsidiaries usually characterize it.
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What Are The Benefits of Multi-Entity Accounting Software?
You already understand what a multi-entity company is and its various types. Now let’s look at the benefits of having a multi-entity accounting solution for your business. Here are some of the benefits of multi-entity account software for multiple companies:
- Ability to Compare Performance Across Different Branches. If you’re running a business with different subsidiaries or branches, having multi-entity accounting software will help you have a comparative view of the performance of each of the branches. By having comparative financial statements, you can easily have precise analytics of branches underperforming or overperforming, so you can set a standard for the future.
- Uniform charts of Accounts. With accounting software, you can create consistent charts of accounts in which your business’s different entities will operate.
- End of Year Closing. When doing end-of-year closing of your books of accounts, there may be some complexities you will face doing this manually or using traditional spreadsheets. But with accounting software, you can trim the time to the bare minimum and close your books faster.
Upfront Conclusion
The best accounting software for multiple businesses right now is Freshbooks and Zoho Books.
Top 7 Best Accounting Software For Multiple Businesses (Summary)
| Brand | Starting price | Best for |
|---|---|---|
| 1. Freshbooks | $17 – $55 per month | Recording expenses and income, Cloud-based |
| 2. Zoho Books | $10- $200 per month | Managing the record of business financials |
| 3. Patriot Accounting | $20 – $30 per month | Multiple companies |
| 4. Xledger | $150 | Consolidating financial data |
| 5. Sunrise | $149 – $499/month | Multi-entity companies |
| 6. Gravity | $110 – $250/month | Managing their business financials |
| 7. FlexiFinancials | $50/month | All-inclusive accounting solution |
1. Freshbooks – Best for Multi-entity Recording Expenses and Income
Freshbooks is the best accounting software recommended for multi-entity companies, offering an easy way to record expenses and income. This software has features that make your business performance clear and straightforward and save time.
FreshBooks is among the most popular accounting tools available, making it the best option for day traders or sole traders with little knowledge of accountancy and financial management. Moreover, FreshBooks makes handling and management of multiple business accounts safer and quicker.
It requires no clicks to create an expense as it offers you Quick Expense Creation directly from the Expenses tab. Freshbooks lets you do basic tasks in as little as 2 minutes, regardless of invoicing a client, recording a payment, or the time spent on a project.
Pricing:
Freshbooks offers four different pricing plans with a free trial and a demo. These includes:
- Lite: $17.00 per month (five billable clients)
- Plus: $30.00 per month (the most popular and offers fifty billable clients)
- Premium: $55.00 per month (unlimited billable clients)
- Custom pricing plans are also available for businesses with unlimited billable clients and specialized features. (Currently 90% off for three months on all four plans)
Highlights and Hidden Gems:
- FreshBooks allows you to invoice in under a minute.
- Expense management is easy with FreshBooks.
- Using the time-tracking feature, you can easily keep track of how much time each job takes or set up a timer to record time automatically.
- An estimate or proposal can be created using this software.
- FreshBooks has fairly basic reporting options, including the addition of double-entry accounting.
Disadvantages and Limitations:
- Pricing is confusing and expensive.
- Miscategorization of items after import.
- The interface needs to be improved, like QuickBooks.
- Crashing of the system occurs, due to which data is lost.
- Frustrating due to not being able to pay through the invoices.
- Limitations of users and billable clients are one of its most significant disadvantages.
Also Read: Project Management Software for Multiple Company
2. Zoho Books – Best for Recording Business Financials for Multiple Companies
The other best multi-entity software is Zoho Books, which manages the record of business financials and consolidates the unified database. This software suits any business size, including small to large enterprises. Marketing and consulting firms can also benefit from this software.
This cloud-based accounting software helps you manage your accounting and accountancy tasks, such as payroll, payment, record control, invoicing, etc. All these features make your complex accounting easier and help your organization and small businesses. With this accounting solution, you can manage cash flow, generate one-time or recurring invoices, and keep track of inventory.
Zoho software lets you track commitments and invoices for buyers, services, and clients and manage expenses and cash outflows for your business. So Zoho software will help you to understand and handle your multiple companies better.
Pricing:
Zoho offers the following pricing plans.
- A free trial is available.
- Standard: $10 per month billed annually or $12 billed monthly.
- Professional: $20 per month billed annually or $24 billed monthly.
- The Premium: $30 per month billed annually or $36 billed monthly.
- The Elite: $100 per month billed annually or $129 billed monthly.
- The Ultimate: $200 per month billed annually or $249 billed monthly.
Highlights and Hidden Gems:
- Offers unlimited invoices.
- Zoho’s accounting software can integrate with programs such as Zoho CRM, Zoho Inventory, Zoho Sign, and many others.
- You can get professional help with accounting by sharing your financial records with your accountant.
- Provides accurate accounting reports so you can keep track of your finances.
- It is possible to reconcile multiple bank accounts as well as credit cards.
- Smart purchases can be made by tracking the stock of retail businesses.
Disadvantages and Limitations:
- Limited integrations are offered.
- Weak documentation and lack of support.
- Users’ restrictions are based on your pricing plans.
- Payment plans are a bit confusing and frustrating.
- Modules restrictions and limitations are not good.
- Mobile apps show errors when processing reports or receipts.
3. Patriot Accounting – Best Accounting Solution for Multi-entity companies
Patriot Accounting is perfect for multi-entity companies looking for an accounting solution for their multiple companies’ accounting without spending extra money on getting a separate subscription. This software has many outstanding features like unlimited payments to vendors, cash-basis, editing or deleting transactions, etc.
Patriot Accounting features are very user-friendly and consist of a simple interface. The reports it generates are simple, and anyone can easily export them. It helps make your accounting more manageable by providing reconciliation, estimates, checking register, profit and loss statements, trial balance, and balance sheets.
Patriot Accounting allows you or your external accountant to work on the software anytime with an internet connection. Patriot accounting software is a good option if you need software for multiple users or are looking for software you can use on your mobile app.
Pricing
Patriot Accounting offers two different pricing plans.
- Offers trials for 30 days and demos. (Video-based, self-guided, and personal)
- Basic accounting plan: $20 per month.
- Premium accounting plan: $30 per month.
Highlights and Hidden Gems:
- Remote access
- Robust functionality
- Easiest Payroll administration
- Unlimited Payments to Vendors
- Real-time, detailed financial reporting
- Designed for businesses with multiple companies
Disadvantages and Limitations:
- Delayed response and support.
- Additional fees (somewhat expensive)
- Accounting errors and bugs are present.
- Lack of customizable reports and receipts.
- More integrations and detailed instructions should improve.
Also Read: Payroll Software For Multiple Companies
4. Xledger – Best Cloud Financial Software for Multiple Business
For business owners looking for an accounting solution they can easily set up and expand without any constraint, Xledger is our best recommendation for them. It is a cloud financial management system that deals with your multiple accounts and provides solutions.
Xledger cloud financial management allows you to access core accounting, reporting and analytics, asset management, budgeting, forecasting, accounts receivable/payable, workflow and expenses reports, and project accounting. Overall, it makes your accounting more accessible and safer with its modules.
As cloud-based software, Xledger helps you consolidate financial data for every unit of your company, and it offers support for different languages and currencies if your business is international. The tool enables you to overcome difficulties in generating accurate and detailed reports and financial data for your business.
Pricing
Xledger doesn’t list any pricing for its customers. It offers a technical demo and pricing plan based on several users and business needs. You can check out their official website for more details about their various pricing plans for what may suit your business. Usually, pricing plans are visible after getting a technical demo and requesting a quote.
Highlights and Hidden Gems:
- Easy to use and secure your data.
- Allow consolidated financial reports.
- Improves financial visibility and analyzes data quickly.
- Gives your organization a robust accounting system.
- Supports over 22 languages and currencies across the globe.
- Flexible and scalable for businesses if you want to grow your business.
Disadvantages and Limitations:
- Lack of automated reconciliation.
- Delayed and lack of proper customer support.
- Some modifications in the system are mandatory.
- Statistical KPI reporting is absent within the software.
- There should be linking to payroll and more integration.
5. Sunrise – Best Feature-rich Accounting Solution for Multi Accounts Companies
Sunrise (Lendio) is simplified accounting software for multi-entity companies to keep books of their business. It is a feature-rich accounting solution to stay on top of your bookkeeping, save time and have a clear insight into your business performance.
Sunrise is a straightforward and user-friendly tool that helps you to manage small businesses and expenses, make sound decisions, and improve your cash flows. It assists you in managing multiple accounts, automatic payments on time, and getting your money faster with WePay powered by Chase.
With features like personalized invoices, real-time financial reports, expense tracking, seamless payroll, effortless quotes and estimates creation, cash flow management, etc. Sunrise will help you better understand your business’s financial health.
Pricing
Sunrise offers three pricing plans, including Early, Growing, and Corporate.
- Early plan, the pricing plan starts at $149.00 per month for up to 120 transactions.
- The Growing plan costs $200.00 per month for up to 200 transactions.
- The Corporate plan costs $499.00 per month for up to 500 transactions.
Highlights and Hidden Gems:
- Tax-compliant capability.
- Automatic expense tracking capability.
- Automatic discount and refund processing.
- Mobile apps are more accessible and user-friendly.
- It allows you to customize your invoices and financial reports and track expenses automatically.
- Cloud-based data backup with encryption and the ability to export the data anytime.
Disadvantages and Limitations:
- Inability to run payroll.
- Confusing and expensive pricing.
- Lack and missing features like other tools.
- Difficult to use without any technical knowledge.
- Lack of PayPal integration and recurring payments.
Also Read: Call Center Workforce Management Software
6. Gravity – Best for Cloud Accounting for Multi-Company Accounts
This multi-entity accounting software is designed for growing businesses to manage their financials and to bookkeep online and with one database. By this, Gravity helps simplify your business operations and consolidate all your companies into one streamlined and unified database.
Gravity is a cloud accounting software consolidating financial reports across all your organizations and accounts. It is affiliated with the Microsoft Power platform, which allows you to access your data anywhere, anytime, and integrates it with other apps.
Some of the features this app offers include inventory management, payroll, information-rich dashboards, revenue tracking and recognition, and more. Gravity makes your multi-entities accounting more accessible and intelligent with its cloud-based features and secure environment.
Pricing
Gravity offers different pricing options that reflect different business needs and budgets. The pricing plans include the following.
- Starter plan: $300 per month with the first 5-pack multi-entity module.
- Power Apps user plan: $280 per month with the first 5-pack multi-entity module.
- Nonprofit plan: $180 per month with the first 5-pack multi-entity module.
Highlights and Hidden Gems:
- Revenue recognition capability.
- Consolidated financial reports.
- Inventory management for multiple locations.
- Automatic subscription billing process that increases accuracy and efficiency.
- Multi-location inventory allows you to track, control, and manage inventory across your enterprise.
- Built-in integration with third-party apps like Jet Reports, Bill.com, Microsoft Dynamics 365, etc.
Disadvantages and Limitations:
- Features are limited as compared to others.
- Delayed customer support and response.
- Reporting and documentation can be better.
- Average ease of use and technical knowledge is required.
- Shortcuts don’t work correctly in the journal entry module.
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7. FlexiFinancials – Best for Flexibility for Multi-entity Companies
FlexiFinancials is an all-inclusive accounting solution that simplifies workflows for companies in various business industries such as insurance, banking, hospitality, healthcare, financial services, etc. It is the most powerful platform that gives your accounting flexibility and extraordinary support.
With its user-friendly features, FlexiFinancials provides you with accounting features from GL and AP modules to an entire suite. It enhances your accounting ability with robust automation, better reporting, and integration. It runs limitlessly and adapts to the flexibility that increases your accounting performance using its AI technology.
Pricing
FlexiFinancials offers its users a free demonstration that can be scheduled at any banking hour. To get started with FlexiFinancials,
- The pricing plan starts at $50.00 per month per user.
Highlights and Hidden Gems:
- Easy bank reconciliation
- Tax-compliant feature for tax management
- Suitable for fund project and fund accounting
- Effortless fixed asset management
- The exciting expense tracking feature
- Robust billing and invoicing features
Disadvantages and Limitations:
- Difficult to find information on the page.
- Complicated and confusing to understand.
- The categorization of personal expenses is still missing.
- Does not offer Chromebook, iPhone, Mac, Linux, and Android.
- Foreign invoices are uploaded manually and integrated indirectly.
Also Read: HR Management Software | Cash Flow Forecasting Software
What to Consider When Choosing Multi-Company Accounting Software
As you’re about choosing accounting software for your multi-entity companies, there are more important factors to consider. Apart from the suitability of your business needs, you need to consider whether or not the software will be perfect for carrying out some essential accounting functions. Below is our top priority for choosing the best accounting software for multiple businesses:
- Collaboration and File Sharing. This is important as you will deal with different entities and stakeholders whose needs for shared files can’t be eliminated. So make sure your accounting app offers this feature allowing you to share files with your vendors, customers, and business branches.
- Importing and Reconciling Bank Balances. Good accounting software will let you automatically import bank transactions from your bank statements into your accounting software for purposes such as reconciling your bank balance, etc.
- Generating Consolidated Financial Reports. This is very important for multi-entity companies. Consolidated reports comprise the financial statements of a business entity operating multiple subsidiaries. Advanced accounting software will let you view the financial reports of each of the units that make up the group or consider the reports of the group as a whole so you can have a clear picture of their respective performances or the overall performance of the business.
- Payroll Integration. Undoubtedly, you’ll not be doing the job alone, so you would need to pay your employees for the job they’re doing. So you want to ensure your accounting software has a built-in feature for payroll processing.
- Unique Dashboards For Each Unit. Since you have different units that make up the group, you likely want to create a dashboard for identifying each unit’s transactions, and you should be able to do this within your accounting software.
- Invoice Generation and Tracking. You don’t want to spend extra costs to get this feature. Your accounting software should offer invoice generation and tracking functionality so you can create invoices from within the system and track the invoices until they’re paid for.
Wrapping Up On Best Accounting Software For Multiple Companies
A business may need multi-company accounting software for different reasons and functions. If your business is small and involves only you, you may not necessarily need this type of software.
But a business with multiple entities or branches needs a multi-entity accounting solution to manage your financials and to bookkeep effectively and effortlessly. While you’re set to choose software, it’s essential to consider your business needs and the most important features you’re looking for in accounting software. With this considered, you shouldn’t go wrong with your selection.
You’ll do well if you choose from our list of best accounting software for multiple companies above. You’ll save time by sifting through a massive list of accounting software already on the market. And you’ll also be making an informed buying decision.
To your success!!!
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