Accounting for multiple entities means tracking the financial activities of separate businesses or divisions within a business. It allows organizations to keep track of income and expenses, investments, liabilities and assets independently, while giving an overview of the entire operation. It’s an essential part of properly managing multiple entities and helps organizations make informed decisions about their finances. Accounting for multiple entities requires a clear understanding of the differences between each entity, as well as robust processes in place to ensure accurate and timely reporting. By preparing and recording individual accounts for each entity, organizations can easily monitor the overall financial health of their businesses and make sound decisions based on real data.