Consolidation

Introduction

Consolidation accounting is the process of combining the financial results of several subsidiary companies or entities into a single combined set of financial results of the parent company. This is useful for tracking annual planning, actuals, and forecasts and comparing them side-by-side.

Typical Problems

Consolidating actuals is sometimes not enough to provide insight into business performance.

Including budgets and forecasts into an already complex consolidation process is often not possible in finance systems without the use of spreadsheets.

Solutions

Modern cloud-based accountancy systems have a built-in budget and forecasting tool which allows for easy consolidation alongside actuals.

Benefits/ROI

Including budget information on consolidated multi-entity reports can provide insights into overall group performance allowing key stakeholders to spot trends easily and inform decision-making.