---
title: "Multi-entity accounting"
description: "What multi-entity accounting is, why groups keep separate books per company, the common pain points of intercompany work and how one platform simplifies them."
canonical: https://ledgeriano.com/glossary/multi-entity-accounting
language: en
publisher: "Ledgeriano"
updated: 2026-11-06
---

# Multi-entity accounting

> What multi-entity accounting is, why groups keep separate books per company, the common pain points of intercompany work and how one platform simplifies them.

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.

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](https://ledgeriano.com/workflows) turn a sale in one company into a purchase in another automatically. The [multi-entity accounting guide](https://ledgeriano.com/guides/multi-entity-accounting) 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.

| 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 |

### 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.

Guide: https://ledgeriano.com/guides/multi-entity-accounting