In an environment comprising multiple subsidiaries, autonomous entities or regional divisions, managing multi-entity expenses quickly becomes a key issue. The desire to centralise processes is natural. It meets clearly identified objectives: organisational consistency, operational efficiency, cost control and regulatory compliance.
But when it comes to applying the same rule to an entire group, the reality on the ground quickly comes into play : diverse practices, specific business needs, structural differences. Centralisation can then become a constraint.
How can robust governance be established without stifling local specificities ?
How can multi-entity expense management software be deployed that provides structure without adding complexity, and that drives performance without restricting freedom ?
This is the challenge of a hybrid approach, where centralisation is seen not as an end in itself, but as a lever for collective performance. And multi-entity expense management, at the crossroads of finance, HR and IT, is an excellent example of this tension.
Why centralise multi-entity expense management ?
In multi-entity groups, finance, HR and IT departments share the same objective: to ensure consistency in practices while improving overall performance. Centralisation makes it possible to :
- Enhance process reliability by reducing variations in practices and the risk of errors.
- Streamline tools and limit IT fragmentation, with more controlled maintenance and support costs.
- Improve regulatory compliance, whether in the context of a URSSAF audit, IFRS consolidation or internal control.
- Improve regulatory compliance, whether in the context of a URSSAF audit, IFRS consolidation or internal control.
In this context, multi-entity expense management becomes a strategic lever. However, if it is implemented inflexibly, it can have counterproductive effects : rejection of tools, circumvention of processes, and slowing down of operations.
What complicates the management of multi-entity expenses : diversity of uses, roles and reference systems
In an international group or multi-site organisation, local realities are far from homogeneous.
- Some employees are nomadic, often travelling. Others are based in establishments, with specific expenses.
- The types of expenditure vary : entertainment expenses, advances, business trips, long-term travel, etc.
- Approval processes differ depending on the structure : some entities depend on a shared service centre (SSC), while others are autonomous.
- The information system is often heterogeneous : several ERPs, HR tools and analytical repositories coexist.
Attempting to impose a single model amounts to denying this complexity. The result: overly standardised processes that are perceived as disconnected from reality, poorly adopted and circumvented. On the contrary, multi-entity expense management must embrace this diversity in order to succeed.
Structuring multi-entity expense management : a common foundation, flexible rules
The right balance is based on a modular governance approach : building a structured but scalable framework that allows each entity to adjust its operations without falling outside the scope of group control.
This is precisely what effective multi-entity expense management software should enable.
1. An adaptable core model, not fixed
The starting point is the definition of a centralised management model :
- rules for calculating compensation,
- validation levels,
- common reference frameworks,
- automated control process.
However, this model must remain adjustable by entity, depending on :
- the type of employees,
- local practices,
- country regulatory constraints.
The main thing is to harmonise without standardising.
2. Role management tailored to matrix organisations
In large organisations, there are many different roles :
- A manager can approve expenses for several BUs.
- A business manager may be a point of contact in several entities.
- An employee may move between several legal structures.
The software must enable :
- multi-role and multi-entity management,
- granular rights management,
- seamless traceability of all validation circuits.
This is a prerequisite for smooth and secure expense management.
3. Dual reporting : consolidated & operational
Reporting is a strategic tool for group management. However, it must also remain useful for teams in the field.
The challenge is to :
- produce a cross-functional view at group level (by business unit, type of expenditure, legal entity, etc.),
- provide customised views for local managers (dashboards, alerts, specific filters).
👉 It is this dual approach that aligns global management and local monitoring, at the heart of successful multi-entity expense management.
4. Seamless interoperability with a heterogeneous information system
Rarely homogeneous, the information system of an international group is composed of multiple building blocks : separate ERP systems, local accounting tools, and various HR solutions.
Multi-entity expense management software must :
- offer an open API and standardised connectors,
- manage multiple repositories (analytics, employees, projects),
- enable flexible synchronisation, tailored to the IT capabilities of each entity.
The objective : integrate without imposing. Synchronise data without overloading IT management.
👉 Real-life case study : an example of a successful multi-entity deployment
A notable example is Cerba HealthCare, an international medical biology group operating in more than 10 countries, structured around 9 subsidiaries and more than 80 companies.
Faced with a fragmented system, disparate tools, and strong external growth, the group needed to harmonise expense management without slowing down its operations or disrupting its subsidiaries.
Rather than imposing a single model, the project was built around a common core model, rules differentiated by service centre, entity or country, and a gradual roll-out in waves, incorporating the IT constraints of each subsidiary.
The result : consolidated management at group level, rapid adoption in the field, and a significant reduction in the time spent on administrative tasks.
In conclusion
Centralising the management of business expenses in a multi-entity group is a strategic lever… provided you avoid the pitfall of rigidity.
The right software is not the one that imposes a single framework, but the one that structures intelligently while adapting to local uses.
This is the challenge of agile and coordinated financial governance, which harmonises without standardising, and steers without constraining.
