AI-native accounting platform Digits has launched Multi-Entity, which the company says was built for a wide range of structures: real estate operators with an LLC per property, holding company/operating company setups, special purpose vehicles, family offices managing several vehicles, finance teams that want per-entity reconciliation, and founders adding a second entity who don’t want to move to a platform they’ll outgrow.
Businesses and accounting firms can now manage every legal entity under one organization, with one login, one subscription, and one bill, Digits says. Each entity keeps its own ledger, close, and tax identity while the people running the business manage all of them in one place.
For consolidated reporting across entities, Digits is partnering with automated financial reporting and planning software provider Reach Reporting.
Ambitious businesses use legal entities to separate liability, plan for taxes, bring in investors, and close acquisitions. But accounting software built around compliance treats each of those entities as a separate customer, with its own login, subscription, and bill, Jeff Seibert, founder and CEO of Digits, wrote in a blog post on Oct. 27.
“Multi-entity businesses have been left with two poor options: keep separate files for every entity and stitch the group together by hand, or move to an enterprise suite priced for a much larger company. For accounting firms, one client relationship becomes a set of disconnected accounts,” he wrote. “A legal entity is a structure you choose. It isn’t your business. Your accounting software should work the way you do.
“Today, we’re introducing Multi-Entity in Digits: one place to manage the books for your entire organization, no matter how many entities it involves,” Seibert added.
For accounting firms, multi-entity clients appear as a single grouped organization, making it easier to manage their books without navigating disconnected accounts. For business owners, adding an entity is simple, with pricing designed to scale alongside their business, Digits says.
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“Adding entities is one of the most common reasons businesses outgrow small business accounting software, because those tools only understand the structure,” Seibert said. “We built Multi-Entity so every entity keeps the separate books that compliance requires, while owners and their accountants run the whole thing as one business.”
Highlights of Digits Multi-Entity include:
- One organization, every entity: Businesses can add multiple entities to a single organization, and firms can add multiple entities to a single client, all under one subscription and payment method.
- Separate books for each entity: Every entity keeps its own ledger, transactions, close, and tax identity, and users switch between entities without switching accounts.
- A grouped view for accounting firms: A client that operates through several entities appears as one client on the firm dashboard, and firms can add entities to a client directly.
- The Agentic General Ledger for every entity: Transactions are categorized and reconciled continuously, so each entity’s books stay current as activity comes in.
- Pricing that scales with the business: Each additional entity on the Essentials plan is free for its first 250 transactions per year, then $35 per month.
Customers can connect their Digits entities to Reach Reporting for consolidated financial statements, dashboards, budgets, and forecasts, and drill down from group results to any single entity. Because Digits keeps each entity’s books continuously categorized and reconciled, Reach Reporting works from current financial data, and firms spend less time checking whether the data is ready, officials say. Digits is also working with Reach Reporting to make it easier to connect an entire multi-entity organization at once.
“With Digits and Reach together, a client gets one picture of the business,” Reach Reporting CEO Justin Hatch said in a statement. “Powerful dashboards and sophisticated reporting from Reach pair brilliantly with AI-native accounting from Digits.”
Multi-Entity is available today to Digits customers and accounting firms. More information about Digits can be found here.
Photo credit: Digits/LinkedIn
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