Multi-entity is used to consolidate existing Figured farms (all with unique Xero accounts) into a group to allow for consolidated financial reporting. 

It's great to combine farming and non-farming entities together to assess their consolidated finances if they come under the same group or corporation. 

These groups can be created with any number of farms provided they're either Financial Farmer or Financial Manager and that you've got access to the farms either personally or via your organisation.

To find out more about multi-entity vs multi-farm, check out this article here

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