ERP software for financial services plays a crucial role in managing complex financial operations, particularly when it comes to handling multi-entity accounting. Multi-entity accounting is managing separate legal entities, each with its own accounting books, compliance rules, operational workflows, currencies, and reporting timelines.
In many financial companies, one main company is in charge of several smaller legal entities. Coordinating these entities under one system requires a comprehensive and intelligent ERP solution. Here we will walk you through how Microsoft Dynamics for financial services solves the pain points in multi-entity accounting, its key features, and the benefits it brings to your financial operations.
How Dynamics 365 Streamlines Multi-Entity Accounting?
Without the right tools in hand, managing finances across multiple legal entities can quickly become overwhelming. Let’s explore the common challenges your teams face and how Microsoft Dynamics financial management software brings clarity and control to your financial operations.
1. Lack of Centralized control
Managing multiple entities without a unified system often leads to inconsistent reporting, duplicated work, and missed compliance requirements.
Dynamics 365 for financial services manages all legal entities from a centralized platform. It lets each entity maintain its own chart of accounts, tax rules, currency, and localization settings, ensuring both control and flexibility.
2. Delays and Errors in Multi-Company Transactions
Manually recording transactions between different entities can lead to errors, make it harder to match records, and slow down the process of closing your books.
Financial management software automates intercompany billing and journal entries. This ensures that debit and credit entries stay in sync across entities, making reconciliation faster and more accurate.
3. Lack of Real-Time Financial Consolidation
When each entity runs its own finance processes separately, it becomes hard to bring all the data together, making it harder to get a clear picture of overall performance.
Built-in shared services and financial consolidation features enable you to centralize functions such as Accounts Payables and Accounts Receivables, generating accurate, real-time consolidated financial reports.
4. Complications with Multi-Currency Management and Global Compliance
Managing currency conversions and regulatory differences across countries adds complexity and risk.
Dynamics 365 for financial services handles multi-currency transactions automatically. It supports dual-currency reporting. With built-in tax rules and localization for over 40 countries, it helps you stay compliant while simplifying global financial operations.
5. Inadequate Access Controls
When users have inconsistent access across entities, it compromises data security and may lead to non-compliance with financial standards.
Role-based security helps you control who can access financial data across each entity. Only authorized users can view or make changes. This protects sensitive information and supports compliance with standards like IFRS and GAAP.
6. Lack of Real-Time Cash Flow Visibility
Without a complete view of your receivables, payables, loans, and investments, it’s tough to know where your cash really stands. That makes accurate, up-to-date cash flow forecasting nearly impossible.
An ERP software for financial services pulls in real-time data from all your business units, making it easier to manage your liquidity and plan ahead with confidence.
Key Features of Microsoft Dynamics 365 ERP software for financial services
Financial services operate in a high-speed, high-stakes environment where trust, compliance, and real-time accuracy are non-negotiable. Hence, it needs more than a standard ERP. You need a feature-rich solution that’s agile, secure, and purpose-built for the demands of modern finance. Microsoft Dynamics 365 for financial services offers built-in capabilities to support complex financial operations, such as;
Centralized Data Management
Financial management software on Dynamics 365 offers secure, role-based document storage, keeping contracts, intercompany agreements, and compliance records organized and accessible, with built-in version control and audit trails.
KPI Tracking and Financial Performance Dashboards
You can track key financial metrics and operational KPIs. It provides real-time dashboards to monitor entity-specific performance or group-wide financial health, supporting better strategic planning.
Designated Transaction Modules
Handle financial transactions within a controlled, structured area of the system. This improves workflow clarity and supports better segregation of duties across departments or entities.
Automated Market Price Revaluation
With Dynamics 365 for financial services, you can automatically adjust asset and portfolio valuations to reflect current market prices, ensuring up-to-date reporting and fair-value compliance for investments across entities.
Built-in Risk Analysis Tools
With built-in risk analysis tools, you can monitor exposures in real time, by entity, region, or investment type, and respond quickly to market changes or compliance gaps.
Periodic Activity Analysis
Analyze trends and movements to identify irregularities or performance shifts. Compare entity-level financial performance over weeks, quarters, or years, using standardized metrics and real-time data.
Customizable Investment Parameters
It lets you tailor financial workflows using configurable parameters, ensuring alignment with your organization’s goal, risk appetite, and portfolio strategy.
Enquiry Management
Manage and respond to financial inquiries more efficiently. Whether from internal teams, auditors, or external stakeholders, all queries are tracked and resolved systematically.
Multi-Entity Consolidation and Reporting
It allows you to,
- Set up consolidation companies,
- Handle intercompany eliminations,
- Map main accounts,
- Manage multiple currencies and currency translation,
- Support dual currencies, and
- Provide tools for consolidated trial balances, aging reports, and reconciliations.
Benefits of Microsoft Dynamics 365 for Financial Institutions
Managing finances across multiple entities doesn’t have to be stressful. With Dynamics 365 for financial services, you get the tools to bring everything together and stay in control, with the following benefits;
1. Better Financial Control
Dynamics 365 gives you real-time visibility into financial data, helping you track performance, enforce policies, and reduce errors. With centralized oversight, you can make faster, more informed decisions at every level.
2. Improved Compliance and Risk Management
Dynamics 365 helps financial institutions stay compliant with built-in audit trails, automated approval workflows, and localized tax and accounting rules, ensuring adherence to standards like IFRS, GAAP, and regional regulations.
3. Faster Consolidated Reporting
It helps you create combined reports by collecting financial data from all your companies. It also handles currency conversions, matches transactions between companies, and adheres to local regulations, ensuring your reports are faster, more accurate, and ready for audits.
4. Time-Saving by Automation of Repetitive Tasks
Automate journal entries, intercompany eliminations, loan tracking, revaluations, and approvals to reduce manual effort, minimize errors, and accelerate month-end close.
5. Enhanced Customer and Investor Experience
With integrated CRM and finance capabilities, ERP software for financial services enables you to manage your customer data, onboarding, and inquiries more effectively, resulting in improved service and stronger relationships.
6. Flexible Integration with Existing Systems
Connect seamlessly with your existing banking, CRM, BI, or regulatory tools—ensuring that data flows smoothly across departments without silos.
7. Scalability
Whether you’re expanding into new markets or adding more business units, Dynamics 365 can easily scale to support your evolving organizational structure and reporting needs.
8. Secure Role-Based Access Control
Protect sensitive financial data with role-based permissions. This makes sure only authorized users can access specific entities, reports, or workflows.
9. Efficient Decision-Making
Interactive dashboards, drill-down reports, and performance insights help identify trends, address risks, and allocate resources more effectively, enabling faster, data-driven decisions.
Microsoft Dynamics for financial services offers a strategic foundation for managing complex, multi-entity operations with greater control and clarity. It consolidates everything into a single platform, helping financial institutions simplify operations, enhance accuracy, and gain real-time insights that enable smarter, more informed decisions.
However, selecting the right software is only part of the equation. You also need a partner who understands the unique challenges of the financial services industry and can customize the solution to meet your needs. If you’re considering Dynamics 365, move forward by choosing a vendor with extensive expertise in multi-entity accounting and a proven track record in financial services. Contact our team to schedule a free demo and discover how our financial management software on Dynamics 365 can simplify multi-entity accounting, enhance compliance, and streamline your financial workflows, tailored to your specific needs.