Multi-entity accounting software:
The definitive guide for growing companies

A complete guide for finance teams managing multiple companies, locations, funds, or subsidiaries.

Table of contents

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  • Why multi-entity accounting matters for growing organizations

    • Why multi-entity accounting matters for growing organizations

    Gravity Software direction sign icon symbolizing strategic decision-making for growing multi-entity organizations.

    Managing multiple companies, locations, funds, or subsidiaries creates both opportunities and operational complexity. As structures expand, finance teams often struggle with siloed data, manual consolidations, inconsistent reporting, and error-prone workflows.

    Multi-entity accounting provides the framework to scale with confidence—but it requires the right processes, data governance, and technology.

    This guide walks through everything you need to know: core concepts, benefits, challenges, real-world examples, and how to modernize your multi-entity financial operations.

    Explore how Gravity simplifies multi-entity accounting—schedule a demo.

  • What is multi-entity accounting?

    • What is multi-entity accounting?

    Gravity Software multi-entity accounting icon illustrating connected companies and shared financial data.

    As organizations expand through acquisitions, new locations, subsidiaries, funds, tax structures, or diversified offerings, they often operate multiple legal entities. Multi-entity accounting is the centralized management of financial operations for all entities within one unified system.

    This section introduces the core concept and why it matters for modern finance teams.

    Why multi-entity accounting is growing in importance

    More industries are shifting toward multi-entity structures due to:

    • Mergers and acquisitions
    • Rapid franchise expansion
    • Growth in family offices and private equity ownership
    • Liability protection through separate legal entities
    • Diversified revenue models
    • Complex investment structures

    See how multi-entity structures impact your financial strategy. Contact our team.

    Industries commonly using multi-entity accounting

    Multi-entity operations are common across:

    • Healthcare groups
    • Real estate and property management
    • Family offices
    • Private equity firms
    • Franchises and multi-location retail
    • Nonprofits with multiple programs
    • Growing SMBs adding new subsidiaries

    View industry-specific multi-entity case studies.

  • Key concepts in multi-entity accounting

    • Key concepts in multi-entity accounting

    Gravity Software three-mountain icon with red flag representing key concepts in multi-entity accounting.

    Effective multi-entity financial management requires structure, consistency, and automation. These are the foundational concepts that keep multi-company operations accurate, efficient, and scalable.

    Shared master files

    Shared master data prevents duplication, inconsistencies, and manual rework across entities. Typically shared:

    • Vendor lists
    • Customer records
    • Chart of accounts
    • Product/services lists
    • Dimensions or cost centers

    Watch our multi-entity video below.

    Intercompany transaction management

    Multi-entity organizations frequently split costs or share services. Without automation, intercompany work quickly becomes difficult to manage.

    Common needs include:

    • Allocating a single invoice across multiple companies
    • Distributing payroll
    • Charging management fees
    • Balancing due to/due from accounts automatically

    CTA: See how Gravity automates intercompany accounting.

    Multi-bank reconciliation

    With multiple bank accounts across entities, manual reconciliation becomes overwhelming.

    Modern reconciliation includes:

    Automatic bank feeds

    Intelligent matching

    Bulk reconciliation

    Both entity-level and consolidated visibility

    See how automated bank reconciliation works inside Gravity Software.

    Multi-entity business intelligence

    Leadership requires more than end-of-month reporting. Real-time insights are critical for decision-making across multiple companies.

    Effective multi-entity BI systems provide:

    • Cross-entity performance dashboards

    • Consolidated reporting

    • Location-level comparisons

    • Custom stakeholder views

    • Trend and variance analysis

    Explore interactive multi-entity dashboards powered by Power BI.

    Multi-currency accounting

    Organizations that buy, sell, or operate internationally require strong multi-currency capabilities.

    Core multi-currency features include:

    • Automatic exchange rate updates

    • Transaction currency vs. reporting currency

    • Consolidated multi-currency financials

    • Reduced foreign exchange risk

    Learn how Gravity handles multi-currency for global operations.

  • See multi-entity accounting in action (7-Minute Demo Highlights)

    • See multi-entity accounting in action (7-Minute Demo Highlights)

    Videos-Icon

    Sometimes seeing is believing. This 7-minute highlight reel shows exactly how Gravity simplifies complex multi-company operations.

    In this demo, you’ll see how to:

    • Manage all companies in one shared database
    • Standardize and control shared master files
    • Automate invoice capture and approvals with AI
    • Build multi-entity payments without double work
    • Create custom consolidated reports instantly
    • Drill into transactions with full audit trails

    Watch the 7-minute multi-entity demo highlights below.

     

  • Benefits of multi-entity accounting

    • Benefits of multi-entity accounting

    Gravity Software tent icon representing the benefits and stability of multi-entity accounting.

    When implemented effectively, multi-entity accounting drastically improves financial visibility and operational speed.

    1

    Greater operational efficiency

    Centralized processes eliminate duplicate entry, extra spreadsheets, and manual reconciliations.

    2

    Faster month-end close

    Automated workflows, intercompany entries, and consolidations reduce close times significantly.

    3

    Improved consolidated reporting

    Finance leaders get real-time entity and consolidated visibility for faster, more strategic decision-making.

    4

    Stronger internal controls

    Standardization across entities reduces risk, enhances audit readiness, and supports compliance requirements.

  • Challenges of multi-entity accounting

    • Challenges of multi-entity accounting

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    Even sophisticated organizations struggle when using tools that were not built for multi-entity operations.

    Increased risk of manual errors

    Without automation, teams face:

    • Copy/paste risks
    • Unbalanced due to/due from accounts
    • Duplicate vendor or customer data
    • Mismatched entries across databases

    Time-consuming consolidations

    Exporting data from multiple systems into Excel drains time and delays insights.

    Lack of visibility across companies

    Disconnected data makes it difficult for leadership to understand performance or spot issues early.

    Solve these challenges with the right multi-entity platform

    Get a personalized walkthrough of how Gravity automates intercompany entries, consolidates reporting, and gives you real-time multi-entity visibility.

    Schedule your demo today.

  • Technology solutions for
    multi-entity accounting

    • Technology solutions for
    multi-entity accounting

    Gravity Software map icon representing technology solutions for multi-entity accounting.

    Not all accounting platforms support multi-entity operations equally. 

    Here’s how the major categories compare.

    Entry-level accounting platforms (QuickBooks, Xero, Sage50)

    Best for single-entity operations — but not built for organizations managing multiple companies.

    Key limitations include:

    • Separate files for each company
    • No shared master data across entities
    • Limited or manual consolidated reporting
    • Heavy spreadsheet dependency

    Traditional ERP systems (NetSuite, Sage Intacct)

    Offer multi-entity features, but:

    • High implementation cost
    • Long deployment timelines
    • Require specialized expertise
    • Often more complex than needed

    Purpose-built multi-entity software

    Purpose-built platforms deliver automation, consolidation, and scalability—without ERP overhead.

    See why purpose-built multi-entity systems outperform ERP in the mid-market.

  • How Gravity Software supports multi-entity accounting

    • How Gravity Software supports multi-entity accounting

    Gravity Software weight icon representing the strength of its multi-entity accounting features.

    Gravity Software is a cloud-based accounting platform built natively on the Microsoft Power Platform. It delivers powerful multi-entity features with the usability mid-market teams need.

    1

    One database for all entities

    Manage every company in a single shared database—no switching files or merging data.

    2

    Multi-entity AP & Intercompany automation

    Allocate a single invoice across companies with automatic due to/due from entries.

    3

    Streamlined bank book reconciliation

    Automatic bank transaction imports and intelligent matching reduce reconciliation time.

    4

    Real-time consolidated reporting

    See financial and operation performance across all companies in minutes—not days.

    5

    Native Power BI integration

    Immediate access to visual dashboards with no extra tools.

    6

    AI & Automation

    Automated:

    • Invoice capture
    • Approvals
    • Allocations
    • Revenue recognition
    • Fx updates
    7

    Multi-currency accounting

    Accurate FX conversion, revaluations, and consolidated international reporting.

    8

    Scalable for fast-growing organizations

    Add entities without new databases or system restructuring.

    Learn more and schedule your personalized demo today!

  • Gravity Software pricing for multi-entity organizations

    • Gravity Software pricing for multi-entity organizations

    Gravity Software pricing target icon with dart representing transparent multi-entity accounting pricing.

    Gravity Software offers transparent, subscription-based pricing designed for 
    growing multi-entity companies. Your total investment depends on key factors such as:

    • Number of users
    • Number of entities
    • Required modules (AP automation, multi-currency, etc.)
    • Implementation scope and timeline

    Every organization is unique, so we provide customized pricing based on your 
    structure and growth plans.

    Explore our pricing overview to understand how Gravity aligns cost with value.

    Click here to view pricing.

  • Real-world multi-entity accounting examples

    • Real-world multi-entity accounting examples

    Gravity Software multi-entity accounting icon representing consolidated financial management across multiple companies.

    With more than 3,400 customers—including 350+ family offices—here are real case studies demonstrating Gravity’s impact.

     

    Brandon Capital — Private Equity (formerly on Xero)

    A leading healthcare-focused private equity firm reduced manual journal entries and streamlined multi-fund accounting across 35+ entities after moving off Xero.

    British Institute of Innkeeping — Nonprofit (formerly on Sage 50cloud)

    This nonprofit replaced Sage 50cloud and now automates approvals, maintains clean audit trails, and saves hours each month on consolidated reporting.

    Proteus Power — Renewable Energy (multi-currency operations)

    A North American renewable energy developer improved multi-entity and multi-currency accounting for U.S. and Canadian projects using Gravity’s consolidated platform.

    Sunray Companies — Hospitality (formerly on Sage 50 & AccountsIQ)

    A multi-entity hospitality group with 47 locations replaced Sage 50 and AccountsIQ to eliminate double entry, automate intercompany transactions, and streamline monthly consolidated reporting. Their accounting team now closes faster and gains clearer visibility across all brands.

  • Multi-entity accounting resources

    • Multi-entity accounting resources

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    Learn more about managing multiple entities, refining processes
    and updating your technology as your organization grows.

    QuickBooks Alternatives for Multi-Entity Firms
    The best options for companies outgrowing QuickBooks—features, comparisons, and recommendations.
    Business Intelligence Whitepaper
    Learn how modern BI tools help CFOs turn financial data into strategic value.
    Audit trail essentials
    Why every accounting system needs full audit traceability.
    Power BI Advantage
    Why built-in Power BI provides unmatched real-time insights.
    Family Office Case Study
    How a 22-entity family office automated journal entries, reconciliations, and reporting.
    AI accounting Guide
    A CFO’s roadmap to using AI for AP automation, reconciliation, and forecasting.
    Big ERP Features
    How Gravity delivers enterprise-grade features without ERP complexity.
    Private Equity Accounting
    How PE and investment firms streamline multi-entity and portfolio accounting.
    Gravity Demo Highlights
    A quick 7-minute look at Gravity’s automation and reporting.

    Simplify multi-entity accounting with Gravity Software

    Managing multiple entities shouldn’t require spreadsheets, manual reconciliations, or switching between databases. Gravity Software gives finance teams the automation, visibility, and control needed to scale confidently.

    Schedule a demo and see how Gravity simplifies multi-entity accounting for growing organizations.

     
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