The Challenge in QuickBooks
It's no secret that QuickBooks works best for smaller businesses with relatively simple accounting, but many growing family offices have difficulty determining when they should switch to a system that has greater capabilities. A common pain point many quickly discover is that it is a cumbersome consolidation process when growth leads to the incorporation of additional entities. Within the context of a family office, these additional entities can take many forms: a trust, a fund, a business venture, etc. Here are a few limitations of QuickBooks that can make multi-entity consolidation a nightmare:
- You Need a Separate Instance of QuickBooks for Each Entity – If you want to have full reporting for each entity, you need to use a separate instance of QuickBooks for all, which requires logging out and logging back in every time you want to switch. This causes your finance/accounting team to waste valuable hours in order to access data and export reports to Excel.
- No Automatic Consolidation Across Entities – Separate, unintegrated instances of QuickBooks require manual consolidation of your data. Not only can this process take days, or even weeks, it can be difficult to sort through the spreadsheets for relevant records.
- Few Controls Against Mistakes and Oversights – Relying on manual spreadsheets opens your business up to the possibility of fraud or, more commonly, simple human error. This also means that your audit trail will be reduced to breadcrumbs.
Sage Intacct’s Solution
Sage Intacct’s cloud-based financial management system provides a solution to all of these problems and more. A single instance will house all of your legal entities, making consolidated data readily available for your team. For entities with the same base currency, you can run any report across all of them. To automate intercompany eliminations or to consolidate data across multiple base currencies, this can be achieved with a single click or an automatic scheduled action. Say goodbye to the endless spreadsheets of manual reconciliation thanks to automated intercompany transactions and rollup consolidations across entities and currencies. What used to take days, or even weeks, in QuickBooks can now be accomplished in minutes using Sage Intacct.
Addressing the challenges of consolidation using Sage Intacct can propel the accounting and finance function forward by:
- Providing real-time consolidation from across the family office at any time;
- Drilldown insight from the consolidated perspective to an operating entity;
- Automate intercompany eliminations at the point of consolidation;
- Consolidate complex ownership structures, such as minority and partial ownerships;
- Save time and increase accuracy using up-to-date exchange rates for currency conversions and revaluations; and
- ASC 830/FAS52 compliant multi-currency consolidation, creating cumulative translation adjustments.
Most importantly, quality and trust are reintroduced into the process. The finance team can circulate relevant and timely information with confidence. Accounting staff can perform higher-value work in the time that was previously spent compiling manual consolidations and performing reconciliations when the consolidation process becomes automated.
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