Glossary

Multi-entity accounting

Definition

Multi-entity accounting means keeping separate books for several related businesses, each with its own chart of accounts, base currency, fiscal years and team, while managing them from one place. It is how holding groups, franchise operators, family offices and accounting firms run many ledgers without mixing them, and it is the base for intercompany automation and consolidation.

How it works

Each legal entity must keep its own statutory books and file its own tax returns, so a group cannot simply run one big ledger. The challenge is everything that crosses entities: intercompany sales and loans, shared services recharged between companies, and group reports that need consistent charts.

Spreadsheets and single-company software force people to key the same transaction twice and reconcile intercompany balances by hand every month. A multi-entity platform keeps the books separate but lets one login switch between them and lets one entry trigger its mirror in another company.

In Ledgeriano each business is a separate set of books under one account, and intercompany workflows turn a sale in one company into a purchase in another automatically. The multi-entity accounting guide covers structure and controls.

Example: a small group with three entities

One owner runs three companies with different currencies and year ends, all from one account.

Example: a small group with three entities
Entity	Base currency	Fiscal year	Chart
Holding Ltd	EUR	Jan to Dec	IFRS
Trading FZ-LLC	AED	Jan to Dec	GCC IFRS with VAT
Services Inc.	USD	Jul to Jun	US GAAP

Related terms

Intercompany transaction
An intercompany transaction is a sale, loan, recharge or fee between two companies in the same group. It is recorded in both sets of books, for example as a sale by one company and a purchase by the other.
Chart of accounts
A chart of accounts is the coded list of all accounts a business uses, organized as a hierarchy of assets, liabilities, equity, revenue and expenses. Ledgeriano ships six templates, from about 97 to about 248 accounts.
Fiscal year
A fiscal year is the accounting period, usually twelve months, for which a business prepares its annual statements. It does not have to match the calendar year: many companies run from 1 April to 31 March or from 1 July to 30 June.
Base currency
The base currency is the currency a business keeps its books and reports in. Entries in other currencies are converted to it with an exchange rate.
Consolidation
Consolidation combines the financial statements of a parent and its subsidiaries into one set, as if they were a single entity, after eliminating intercompany items.

Guides

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FAQ

Questions about Multi-entity accounting

Is multi-entity accounting the same as consolidation?

No. Multi-entity accounting keeps each company's books. Consolidation combines them into group statements after eliminating intercompany balances.

Can entities have different currencies and year ends?

Yes. Each keeps its own base currency and fiscal calendar; group reporting translates and aligns them.

Put the terms to work

Post a balanced entry, run a trial balance and close a year in a real ledger. New accounts get free credits to get started.

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