As we usher in 2024, multi-entity businesses find themselves at a crossroads with a unique opportunity to revolutionize their financial management practices. In this pursuit, it is vital for them to clearly outline their financial goals addressing specific challenges faced by multi-entity businesses. For example, issues in getting a holistic view of financial performance across all locations, reliance on manual processes, lack of automation, and complex bookkeeping processes – to name a few. These factors limit their ability to make informed financial decisions and slow business growth.
This article explores five focus areas that can positively impact multi-entity businesses and how accounting automation technology like Docyt AI can overcome their challenges.
1. Real-Time Profitability with a Live P&L
To maximize the chances for success in 2024, multi-entity businesses must prioritize adopting a live Profit and Loss (P&L) approach. Following traditional financial reporting practices results in delays, inaccuracies, and a lack of timely decision-making. Transitioning to a live P&L system provides real-time, daily insights into the business performance. This results in faster adjustments and decision-making, empowering businesses to seize profitability opportunities before competitors.
Docyt AI platform allows multi-entity businesses to view their P&L account and balance sheet in real-time to enable them to understand every minor detail. Furthermore, users can drill down on each line item to view invoices, receipts, or revenue reports.
2. Building Efficient Reconciliation Processes through Automation
Developing an efficient reconciliation process should be a key goal for multi-entity businesses in 2024. Automation will play a decisive role in the journey by making the reconciliation process more efficient, accurate, and error-free. Leveraging Docyt AI’s ‘Automated Bank Reconciliation’ feature, multi-entity businesses can swiftly download a year’s worth of transactions and perform bulk categorization. Unlike rule-based systems, Docyt AI auto-categorizes and auto-matches documents with bank transactions and updates journal entries in real-time. As a result of Docyt AI handling all your bookkeeping workflows in real-time, you can easily generate real-time accrual-based reports in seconds.
3. Getting Real-time Access to Financial Performance
This year, there will be a surge in businesses adopting strategies to standardize their financial reporting through automation. Docyt AI establishes a unified chart of accounts across all entities to bring consistency to the accounting process. Integrating accounting solutions with live reporting features like the Docyt AI improves financial reporting through its ‘Real-Time Financial Insights Dashboard.’ Business owners get real-time, daily insights into financial performance, overcoming the typical practice of waiting 15 days after month-end to see how a company is financially performing.
Docyt AI also enhances the external stakeholder experience by providing investors and lenders with comprehensive and real-time reports on gross profit, cash flow analysis, balance sheets, and daily revenue accounting to ensure accurate and efficient revenue tracking across all entities.
4. Simplifying the Tax-filing Process with Catch-up Bookkeeping
Maintaining clean books is paramount, especially during tax season. Falling behind can delay tax filing and, in turn, the ability to secure business loans. To proactively address this challenge, it’s best to leverage AI-powered accounting solutions like Docyt AI, which automates bookkeeping in the background.
Docyt AI’s ‘Catch-up Bookkeeping’ service enables multi-entity businesses to take control of their books and prevents business owners and their accountants from playing catch-up. This automated approach empowers business owners to scale seamlessly, allowing them to establish and manage multiple businesses efficiently—all within one platform. Docyt AI ensures businesses are always ready to file taxes, secure business loans, prepare for shareholders, and facilitate buy and sell transactions whenever required.
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5. Boosting Cybersecurity to Prevent Fraud
Implementing AI-powered cybersecurity measures will play a pivotal role in safeguarding sensitive data. To achieve this cybersecurity is a non-negotiable priority. AI assists in identifying and addressing compliance issues to reduce the risk of errors and penalties. Docyt AI provides secure integration with over 12,000 financial institutions, and its ability to handle CSV files underscores its commitment to cybersecurity. Early identification of fraudulent activities during the reconciliation process adds an extra layer of protection, ensuring the integrity of financial data. Docyt AI is encrypted with unconventional security features like data encryption, 2-factor authentication, and facial recognition or fingerprint sign-in to catch any fraudulent activity well in advance to maintain the privacy of your accounting data.