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Insights · 5 min read

How multi-entity closes remain separate but visible

A group's books are not a single ledger. They are several ledgers that need to close on their own record and reconcile on a shared one.

The rule

Each entity closes on its own books, with its own reconciliations, its own owner, and its own completion state. Combined reporting comes after entity closes are complete, not instead of them.

Shared-cost handling

A shared expense (rent, tooling, insurance) is received once and allocated to entities on a documented basis. The allocation is a decision, not a formula; it needs a supporting record.

Intercompany review

Intercompany balances are reviewed for symmetry every period. Asymmetry is the earliest sign that a shared cost was recorded in one entity but not settled in the other.

Combined visibility

Combined reporting is a separate deliverable. It exists to give leadership one view; it does not replace the entity-level records, which remain the source of truth for tax and legal purposes.