The Challenge in QuickBooks
If you’re trying to make QuickBooks work for your growing multi-entity family office, you’re likely struggling with the system’s lack of complex functionality. We have addressed the challenges you face when operating with a time-consuming consolidation process, but two other critical features QuickBooks can’t perform are inter-entity transactions and multi-currency processing.
To put it bluntly, QuickBooks is not designed to solve the accounting challenges that arise from inter-entity transactions. There is no way for them to be automated, so the finance team must constantly track their intercompany accounts and create manual entries in the affected entities. As you have probably experienced, when someone misses one of these transactions, the issue is usually not discovered until much later when the details of the transaction have been forgotten.
QuickBooks also cannot process transactions in multiple currencies. As a result, you must manually convert each to your base currency prior to entering it into QuickBooks. Producing a consolidated financial report consisting of entities with different base currencies is a massive manual effort.
Sage Intacct’s Solution
Luckily, Sage Intacct has an automated solution for both of these challenges. Here, when you create entities, you have the option of defining inter-company relationships that control the automatic posting of inter-company transactions, making it much easier to centralize payables and receivables. Sage Intacct will auto-eliminate inter-company balances when running a consolidation.
Sage Intacct helps you process multi-currency transactions through automated, accurate conversions to the base currency using daily rates. Sage Intacct allows you to calculate unrealized gains or losses by running revaluation reports if adjustment entries are needed for changing currency rates. Through the use of out-of-the-box reports, it is quick and easy to accrue for unrealized gains/losses for the period. You can increase accuracy and reduce the time for multi-entity, multi-currency transacting and consolidation. Sage Intacct is ASC 830/FAS-52 compliant for multi-currency consolidation and is a system that creates cumulative translation adjustments.
Let Sage Intacct help you eliminate the complexities surrounding inter-entity and multi-currency transactions and free your staff from the manual work these processes entail.
For more about how Sage Intacct offers your family office the solutions you need, click the image below to download our guidebook Sage Intacct: Solving the Challenges Family Offices Face on QuickBooks