Multi-entity accounting definition: Multi-entity accounting involves managing the finances of a company that operates under multiple legal entities.
Whether you run a franchise or have multiple businesses, multi-entity allows you to establish a main head office account, plus sub-entity or “franchise” accounts. The value of multi-entity is that you can have different accounts share the same customization. Furthermore, you can customize screens to aggregate data from all sub-entities.
Even though the sub-entities have new company account names and separate QuickBooks databases, in reality they are all syncing to the same back-end as the head office and all other sub-entities.
NOTE: Sub-entity accounts must use the same online or desktop version of QuickBooks as the main head office account. Thus, if the main head is on QuickBooks Online, the sub-entity must also be on a QuickBooks Online account.
Currently, multi-entity is not available out-of-the-box, and requires advanced customization. This may include, but is not limited to:
Updating print templates to support multiple sub-entities.
Updating email templates to support multiple sub-entities.
Reviewing shared or existing dropdowns.
Reviewing shared resources & users.
Updating email settings and business logic for emailing transactions
This article will cover the basics of multi-entity, but does not detail how to customize your account.
How Multi-entity works
Multi-entity allows more than one QuickBooks database to sync to the same Method company account. The company account gets divided into the Main "head office" company account, and the "franchisee" sub-entity company accounts.
Even though the sub-entities have new company account names, in reality they are all syncing to the same back-end as the head office and all other sub-entities.
In this document, "franchisee" and "sub-entity" will be used interchangeably.
Who is Multi-entity for?
Franchisors who have many franchisees, each with their own QuickBooks database. In this scenario,
Franchisor can design screens that are instantly and universally available to all of their franchisees, without the need to copy screens individually into each franchisees account.
Each franchisee syncs their QuickBooks database to Method and can only see their own work.
Franchisors can create screens to search, insert, and update records in multiple sub-entity accounts, without the need to sign out and back in.
Franchisors are able to create consolidated reports.
Companies who have more than one QuickBooks database.
If you have multiple businesses, you can share data and screens across those businesses.
NOTE: While an existing company account can be converted to be the main "head office" of a multi-entity environment, there is no way to transfer an existing company account to be a sub-entity.
Furthermore, a sub-entity cannot be removed from the "head office", nor can it be transferred to its own account.
How to get set up
Please contact us to enable multi-entity on your account. We'll convert your existing company account to a multi-entity environment.
How to add your first sub-entity
Login as the admin of the main, "Head office" Method account.
Go to Account Settings ⇨ Multi-entity.
Click the Get started button.
In the Sub-entity name field, type out of the name of the new sub-entity and click Create button. The sub-entity name must consist of letters and numbers only, no spaces.
A popup will inform you the new sub-entity as been created. To complete the account setup process, you must log into your new sub-entity, complete the setup process, and connect your QuickBooks account. Click the Go to Sub-entity button to access that new account.
Follow the steps on the screen to connect your sub-entity account with its corresponding QuickBooks file. In the below example image, we are prompted to connect our QuickBooks Online account.
Back in your main "Head office" Method account, you should now see a list of all your sub-entities and the new account you just created.
By selecting a sub-entity in the table, (and not the Go to Sub-entity button), you can view a list of users in that account, if that account is set up.
Congratulations! You have created your first sub-entity account. Creating a second is similar, to the above steps, you will need to click the New button which you can see in step 7 above.
How do I assign a user to more than one sub-entity?
In order to assign a user to other sub-entities, you will need to access their user profile.
To access a user's profile if they are a user of the main account, go to Account Settings ⇨ Users, and select a user from the list.
To access a user's profile if they are a user in a sub-entity account, go to Account Settings ⇨ Multi-entity, click the sub-entity account the user is currently in, and then select a user from the list.
When editing a user, you will notice an additional section dealing with multi-entity called Sub-entity settings.
Within Sub-entity settings, you can add in all the sub-entity accounts you want the user to have access to.
Hit the Save all changes button when you've finished.
How does Pricing work?
Please see Multi-entity Pricing.
How can I revert back to a normal Method Account?
Once multi-entity is enabled on an account you cannot revert back to a regular account.
The best move would be to manually remove the users from the sub-entity accounts and all customization related to sub-entities, and then use the Head Office as the main account for all users. There is no harm in having a multi-entity database vs. a single one.
What happens if I cancel a sub-entity?
If you cancel a sub-entity, you will no longer be able to log into that sub-entity, or have data sync to that sub-entity.
However, the data recorded for that sub-entity stays in the database, and can be viewed or modified. Unlike a non-multi-entity database, the data is not deleted.
You can cancel sub-entities in the My Account portal, just like any non-multi-entity account. To cancel an account:
Log into the main "Head office" Method account.
Go to Account Settings ⇨ Multi-entity.
By the sub-entity you wish to cancel, click the Go to Sub-entity button.
While in that sub-entity, go to Account Settings ⇨ Subscription.
Click the Cancel Account at the bottom to cancel this sub-entity.
Multi-entity and Method:Classic
Multi-entity is available on our older, classic version of Method. If you are still using this version, or wish to find out more information, please see our article "Multi-tenancy for Franchises".