As entrepreneurs and CFOs steer their organizations toward expansion, they often encounter a significant roadblock: the limitations of basic accounting software. Managing the finances of multiple businesses is a complex task, and as companies grow through acquisition, diversification, or franchising, entry-level systems like QuickBooks quickly become a bottleneck. True growth in 2025 demands a more robust, integrated solution built for multi-entity structures.
This article provides an actionable guide to understanding the features of powerful multi-entity accounting software and identifying the best options to fuel your company's growth.
Why businesses outgrow basic accounting software
The common practice of juggling separate QuickBooks or Xero files for each legal entity is inefficient and prone to error. This approach creates significant pain points that inhibit strategic decision-making and slow down operations.
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Time-consuming manual data entry: Constantly re-entering data across different company files consumes valuable hours and increases the risk of mistakes.
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Lack of real-time visibility: It's impossible to get an accurate, up-to-the-minute view of your organization's overall financial health when data is siloed.
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Complex financial consolidation: Manually consolidating reports in spreadsheets is a slow, arduous process. This is a major source of stress for finance leaders; 97% of CFOs admit to losing sleep over financial reporting, and 43% don't even know how many spreadsheets their teams use for critical information.
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Difficult intercompany transactions: Manually tracking and reconciling loans, payments, and shared expenses between related entities is a complex task that often results in unbalanced books.
If these challenges sound familiar, they are clear signs you need multi-entity accounting software to support your business's next phase.
What is multi-entity accounting software?
Multi-entity accounting software is a specialized system designed to manage the finances of multiple companies, divisions, or locations within a single, unified database. In sharp contrast to entry-level software that requires separate subscriptions for each business, a true multi-entity platform aims to streamline processes, automate complex tasks, and provide a consolidated, real-time view of the entire organization's financial health. Companies adopt multi-entity structures for various reasons—such as limiting liability, managing franchises, or separating lines of business—and this software provides the necessary financial backbone. For a deeper look, see this comprehensive guide on multi-entity accounting.
Must-have features in multi-entity accounting software
For businesses looking to scale efficiently, several features are non-negotiable when choosing an accounting platform.
Consolidated financial reporting
The ability to consolidate financial reports across entities with a single click is a defining feature of a true multi-entity solution. This function eliminates the need for manual spreadsheet work, saving significant time and reducing the chance of human error. The software should allow you to generate reports for individual companies, specific groups of entities, or the entire organization, providing both granular detail and a high-level overview.
Automated intercompany transactions
A crucial feature that sets advanced platforms apart is their ability to automate intercompany transactions. For example, when one of your companies pays an invoice on behalf of another, the software should automatically create the corresponding "due to" and "due from" entries for both entities. This automation ensures your books remain balanced across the organization without tedious manual intervention.
A single, unified database
The efficiency gained from managing all your companies from one database is immense. This centralized architecture allows you to share master files like a unified chart of accounts, vendor lists, and customer data across all entities while keeping their transactional data separate and secure. This approach is fundamental to improving data integrity and streamlining accounting for multiple companies in one database.
Granular security and role-based access
In a multi-entity environment, controlling who sees what is critical. For instance, a manager for one location should not be able to view the financial data of another unless they are given explicit permission. Robust software provides granular security, allowing you to set permissions at the company, screen, and even field level to protect sensitive information.
Best accounting software for multiple companies in 2025
The market offers various tiers of software, from enhanced small business tools to comprehensive enterprise-level platforms. Choosing the right one depends on your specific needs for consolidation, automation, and scalability.
Gravity Software: A top QuickBooks alternative for multi-entity
Gravity Software is a leading solution designed specifically for the needs of small to mid-market businesses with multiple entities. It stands out as one of the best QuickBooks alternatives for multi-entity management because it provides sophisticated features without the complexity and cost of a traditional ERP system.
Key advantages of Gravity Software include:
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Built on the Microsoft Power Platform: This foundation offers enterprise-grade security, reliability, and scalability, plus seamless integration with tools like Microsoft 365 and Power BI.
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Unlimited legal entities: Manage all your companies in a single database without the expense of multiple subscriptions.
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Powerful automation: Streamline everything from intercompany transactions to revenue recognition and bank book management.
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Real-time business intelligence: Leverage integrated Power BI dashboards to get a complete, 360-degree view of your organization's performance in real time.
Gravity's multi-entity accounting software bridges the gap between entry-level products and complex ERPs, offering a powerful and accessible solution.
Other multi-entity accounting platforms
While Gravity excels for the mid-market, other platforms address different segments. Higher-end ERP systems like Sage Intacct and NetSuite offer extensive multi-entity capabilities but typically come with a much higher price tag and longer implementation cycles.
Can You Use QuickBooks or FreshBooks for multiple businesses?
This is a common question, and the answer is nuanced. While you can use platforms like QuickBooks Online and FreshBooks by purchasing a separate subscription for each business, they are not true multi-entity solutions. They lack the core features that drive efficiency, forcing you to manage separate logins and manually consolidate data. This model fails to solve the central challenges of automated intercompany transactions and single-click consolidation, which a dedicated accounting software for multiple businesses is designed to fix.
Making the switch: Preparing for a new accounting system
Transitioning to a new accounting system is a significant project that requires careful planning. Follow these actionable steps for a smooth upgrade:
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Assess your needs: Before you start looking, create a list of your biggest operational pain points and the "must-have" features you need to solve them.
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Data cleanup: Ensure your existing financial data is clean, accurate, and up-to-date. This will make the migration process much smoother.
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Involve your team: Get buy-in from your accounting team and other stakeholders who will use the software daily. Their input is invaluable for choosing the right system.
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Schedule demos: Don't rely on feature lists alone. See the software in action to understand its workflow and confirm it meets your specific requirements.
Understanding the benefits of a multi-company accounting solution will help you justify the investment and champion the change within your organization.
Conclusion: Build a foundation for future growth
Continuing to manage multiple businesses with separate, disconnected accounting systems is an unsustainable model for any company with ambitions to grow. To scale effectively, you need a true multi-entity solution that delivers the automation, consolidation, and real-time visibility required for smart, strategic decision-making.
It’s time to move beyond outdated processes and invest in a platform that will support your long-term vision. Learn how Gravity Software can help you build a robust financial foundation for your future and schedule a demo today.
Gravity Software
Better. Smarter. Accounting.
