Multi-book Accounting- the game changing software feature for accountants
What is multi-book accounting?
Multi-book accounting refers to the process of handling multiple book of accounts in your business for different branches, subsidiaries.
Without a robust software, one cannot maintain multiple books. The manual process will consume your time, money and efforts drastically.
What are the real-time scenarios of Multi-book Accounting?
Every company will be maintaining primary books, which are the primary accounting records. Different versions of financial accounting reports and statements mandating with the local governments, taxation processes and industry regulations will be required for multitude of business accounting processes. In such cases, Multi-books Accounting is used.
Let’s take an instance when your business is being operated from multiple locations. Consider that you are running one business in a Special Economic Zone (SEZ), where you have different GST taxation processes and your other business is on the mainland. You might be selling the same product. But the constraints pertaining to the taxation might vary in both your office branches. Your accounts department will require you to maintain multiple accounting books to keep track of the transaction processes against branches. If your business has different subsidiaries, then they will require a separate accounting book to keep track of all the transactions and make a note on the profit and loss. The revenue generated and the expenses incurred can be identified in a more accurate more.
Another one instance is when you are working on multiple projects and you are dealing with different clients .The currency processes might be in dollar for one project. The other project might require you to use dirhams. In such cases too, you might required to maintain different books to note down the transactions. The reports generated for many features such as cost analysis and analyzing the labor charges will be varying. While analyzing the P&L and transaction mapping of your business, it becomes tough to bring all these accounting factors into picture.
One more real-time scenario would include handling multiple teams at different branches of the company. Imagine you are into automobile industry. You might require keeping track of profit and loss incurred by your team separately. In such circumstances, Multi-book Accounting is preferrable.
If you are into wholesale industry, you will require to handle two types of clients- individual customers and resellers. Maintaining 2 separate book of accounts for your wholesale and retail clients is time-consuming and difficult to manage. The process, if done manually will consume n number of hours. If depending on spreadsheets, we cannot rely completely on it. A report by HBR states that 40% of spreadsheet data contains errors.
Why should you automate your Multi-Book Accounting tasks using effitrac?
Involving manual processes will lead to more errors. Accuracy is a far cry for those who involve spreadsheets for multi-book accounting.
- In case of a decentralized ERP system, you might need to purchase more than one software license, which leads to hiked-up cost of maintenance.
- Every reports will have its own set of rules. Your Accounts team will have a hard time keeping track of all these processes and formalities.
- They are more likely to face a lot of setbacks during consolidations and while passing financial statements.
To report different financial outcomes under multiple categories within compliance, you can now make use of effitrac Multi-Book Accounting feature, where you can manage multiple accounting books under a single umbrella.
Now there will not arise any obstacles while issuing your financial statements. The accounting standards can also be optimized to the user preference.
What are the features of effitrac Multi-books Accounting?
- Customizable according to your business requirements
- Automated consolidations reports bases on branches/subsidiaries/clients/divisions
- Business intelligence powered reports and dashboards
- Real-time insights
- Concurrent processing of all books rather than delaying till the end of the hour to replicate the data
- Accurate analysis with subsidiary-book relationship mapping abilities
- Adjust your financial results on a single-book basis.
- Synchronize parallel transactions
- Processing done in such a way that it does not affect the other, un-related books
- Manual journal entries can be posted under a single roof
- Multi-currency management
- Indian GST compliant and GCC VAT compliant
- Consolidate your complete finances under a single book
- Mobile App to connect with your team, anywhere at anytime
- Advanced recognition of revenue
Looking for an epic Accounting solution? Enable effitrac GST compliant Billing and Accounting Software to simplify your accounting processes like never before. Want to know more? Feel free to request for our free demo