A note before you read: ABFI doesn't sell software and has no affiliate deals.
Owning several companies is common: an operating company, a property LLC that owns the building, a second location set up separately, a holding company on top. The books get complicated not because any single entity is hard, but because money moves between them. The software decision is mostly about how you'll handle that movement and how you'll see the group as a whole.
Start here if this is new: accounting for multiple LLCs and intercompany accounting and consolidation.
What multi-entity accounting needs
| Need | Why |
|---|---|
| Separate books per legal entity | Each entity has its own bank accounts, CPA filings and liabilities |
| Intercompany tracking | Loans, rent and management fees between entities must match on both sides |
| Consolidation | One view of the whole group, with intercompany eliminated |
| Consistent chart of accounts | Consolidation is far easier when every entity uses the same accounts |
| Permissions by entity | Different people may need different access |
The shortlist
1. QuickBooks Online (one file per entity) plus a consolidation tool: best for 2 to 5 entities
- How it works: each entity gets its own QuickBooks Online subscription. A reporting tool (or a well-built spreadsheet) pulls them together monthly [1].
- Strengths: affordable, familiar, every accountant knows it.
- Watch for: QuickBooks doesn't consolidate across files by itself, and intercompany entries must be matched by hand. Use the same chart of accounts in each file. For tracking locations or divisions within one entity, see classes vs locations.
2. Xero (one organization per entity) plus a consolidation tool: best for small groups on Xero
- How it works: same model as QuickBooks: one organization per entity, consolidated with a reporting tool [2].
- Watch for: same limits. Compare: QuickBooks Online vs Xero.
3. Sage Intacct: best for growing groups with many entities
- How it works: one system with multiple entities, automated consolidation, intercompany handling and dimension-based reporting [3].
- Watch for: implementation cost and time; usually needs a partner.
4. NetSuite: best for larger or fast-growing groups with complex operations
- How it works: an ERP with multi-subsidiary accounting and consolidation, plus inventory, order management and more [4].
- Watch for: the most expensive and complex option here. Make sure process, not software, is the real bottleneck before you move.
Consolidation and reporting tools
Tools that pull several QuickBooks or Xero files into consolidated reports and dashboards sit between options 1 and 3. They're often the cheapest way to get a group view without changing ledgers. Check that the tool handles intercompany eliminations, not just adding entities together.
Which setup at which size?
| Your group | Usual best fit |
|---|---|
| 2 to 3 entities, little intercompany | Separate QuickBooks or Xero files, monthly spreadsheet consolidation |
| 3 to 8 entities, regular intercompany | Separate files plus a consolidation tool, same chart of accounts everywhere |
| Many entities, finance team, frequent intercompany | Sage Intacct or similar |
| Large, complex operations and inventory | NetSuite or another ERP |
The setup rules that matter more than software
- Same chart of accounts in every entity.
- Intercompany accounts in pairs (Due From X in one entity, Due To Y in the other) that must always match.
- Written agreements for intercompany rent, loans and management fees, so the entries have a basis.
- Reconcile intercompany monthly, before consolidating.
- Consolidated reports for the owner, entity reports for the CPA. When comparing entities, EBITDA vs net income explains a common way to compare operating results.
ABFI's multi-entity accounting runs separate books per entity with matched intercompany and a monthly consolidated view. Our tech stack guide shows how the pieces connect.
Keep reading
- Accounting for multiple LLCs
- Intercompany accounting and consolidation
- QuickBooks Online Plus vs Advanced
Sources
- Intuit, QuickBooks Online plans and pricing, quickbooks.intuit.com/pricing. Checked November 6, 2026.
- Xero, US pricing and features, www.xero.com/us/pricing-plans. Checked November 6, 2026.
- Sage Intacct, product website, www.sage.com/en-us/sage-business-cloud/intacct. Checked November 6, 2026.
- Oracle NetSuite, product website, www.netsuite.com. Checked November 6, 2026.
Questions owners ask
Can QuickBooks Online handle multiple companies?
Yes, with one subscription per company. It doesn't consolidate across companies by itself, so you need a reporting tool or spreadsheet for the group view.
Should I use classes instead of separate files for each LLC?
Usually not. Separate legal entities should have separate books. Classes suit divisions or locations within one entity.
What is intercompany elimination?
Removing transactions between your own entities (like rent one pays another) from consolidated reports, so the group doesn't count its own internal activity as revenue and expense.
When should I move to Sage Intacct or NetSuite?
When entity count, intercompany volume or reporting needs make monthly spreadsheet consolidation slow or unreliable, typically alongside a finance team.
How many entities is too many for spreadsheets?
There's no fixed number. If consolidation takes more than a day or errors keep appearing, it's time for a tool.
Want one clear view of all your companies?
ABFI runs multi-entity books with matched intercompany and a monthly consolidated view. Start with a complimentary Business Accounting Diagnostic.