Multi-Entity/Subsidiary Accounting: Standardization Across Separate Legal Entities & Inter-company Transactions
Doing business globally is an exciting, but increasingly complex process. Multinational companies need the capability to streamline their multi-subsidiary operations and real-time visibility at the local, regional and corporate levels. Sound impossible? It isn’t. Not if you have a robust accounting system that simplifies your financial world.
An integrated accounting system:
• Enables the management of multiple subsidiaries, business units and legal entities.
• Supports consistent processes across countries.
• Supports global compliance of internal and external processes.
• Provides real-time global business insight.
Global Accounting and Consolidation
An integrated accounting systems offers robust financial reporting capabilities that enable an organization to understand what is happening across its global business in real-time. In addition, a multi-language user-interface helps bridge communication barriers and provides a flexible hierarchy that allows businesses to run their entire entity structure with ease. You’ll have an instant global view of the business with subsidiary specific drill-down, allowing you to quickly understand what is going on anywhere in the world.
Comprehensive Multi-Currency Management
Integrated systems offer and support multi-currency management exchange rates (enabling you to do business with both customers and vendors globally) as well as a wide variety of payment options. Imagine having real-time currency conversion and financial consolidation for all your global operations. You’ll be able to manage a complete range of international tax structures and restate currencies and consolidate financial reporting across business units.
Audit and Compliance Reporting
An integrated system will support both global standard and country-specific requirements. The always-on audit trail, built-in analytics, access logs and workflow, and the ability to drill down to the underlying transaction detail ensure that you’ll always get supporting documentation. Further, roles in user permissions management in business workflow capabilities allow you to configure the system behaviors to support your own process requirements to help you meet the needs of local compliance obligations.
Configurable Tax Engine
With an integrated system, you’ll have a built-in tax engine that is configurable to your specific business needs. Calculate taxes in real time on sales and purchase transactions and cross border sales and Intrastat reporting obligations between EU countries and file reports electronically. Most businesses will no longer need to install a stand-alone tax engine.
Ditch the Disparate Systems
In many cases, a company’s subsidiaries are all running disparate systems. As a result, every month the accounting department has to manually bring everything together, often in a spreadsheet. Manual data entry means a greater change for errors. There’s no fully integrated platform. There’s no flexibility in running reports. No synergy between divisions. No real-time information. Decision making is delayed while data is manually entered and reports are produced.
With an integrated system, it takes just the touch of a button for your corporate headquarters to see what’s going on without asking the subsidiaries to produce reports.
Businesses can adjust for currency, language, taxation and legal compliance differences at the local level, alongside regional and global business consolidation and roll-up. An integrated system provides real-time visibility into all aspects of your business worldwide, ensuring consistent and compliant management both locally and globally. See how easy it can be to seamlessly meet the individual needs of local operations and adapt to the latest accounting standards and regulations.
Contact goVirtualOffice to learn more about how you and your company can benefit from a robust, integrated software system.