But ask the CFO of any global enterprise, and they will point to insight as one of the most persistent.
Financial insight involves numerous elements, and multiple entities complicate most of them.
Here are some of the most distinct challenges:
- Consolidations. Global companies must consolidate on multiple levels, from subsidiary and entity up to broad enterprise. This often requires time-consuming and labor-intensive processes, but even this premium in effort by no means guarantees accuracy.
- M&A. Multi-entity orgs frequently grow by means of mergers and acquisitions. Most new or acquired entities have different accounting systems than the broader enterprise. The resulting lack of visibility can hamper the ability to grow.
- Transactions. Multiple entities, multiple countries, and multiple currencies all pose unique obstacles for global companies. Even if all entities are in a single country, the enterprise will need to conduct intercompany transactions.
Multi-entity accounting places immense strain on ERP systems.
That on-premises systems struggle with distribution and complexity should come as no surprise. Every new entity requires the installation of a unique software instance, and each instance requires unique upgrades.
But even cloud-based systems vary in their ability to handle multi-entity demands.
Some cloud vendors cope with client growth through upselling, while others use upgrades and customization to penalize ambition. Precious few get consolidations right, and almost none combine global visibility with support for M&A and inter-company transactions.
Xledger is the exception.
Xledger provides an extremely robust and flexible cloud ERP system with configurable dashboards and 17 unique dimensions. It has a consistent, logical, and accurate chart of accounts that can handle limitless variations.
Xledger empowers executives to make one-point changes for their entire organizations. The system can be set up to allow global access across all entities, while restricting access at the lower level.
Users can move tasks up or down, while managers can monitor processes and tasks for the whole organization. One manager can direct cash flow for multiple entities.
Xledger also has sophisticated and easy-to-use functionality for inter-company transactions.
Xledger makes it easy to perform global consolidation for multiple locations and entities, and across different currencies and languages, at a touch of a button. Staff around the world can collaborate seamlessly.
In addition, Xledger’s powerful BI capabilities make it easy to compare performance across different entities, allowing executives to define their own KPIs and performance matrix.
With a truly global ERP solution like Xledger, your organization can save finance staffing costs, shorten the time it takes to close books, and wield real-time insight into every corner of your business.