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As a group’s CFO or head accountant, who has to deal with consolidation, you know that the walls of the consolidation house are mainly built from intra-group reconciliations. Differences in balances lead to a wonky roof! And what a nightmare it is to solve those errors when a reporting date is twinkling in your calendar…

This is about preparing financial consolidation in accounting. Haven’t done it before? No problem. It’s not that difficult as you think it is. Yet there are some general rules to keep in mind. Here are some basic tips and rules for the beginner.

When considering financial planning and consolidation, there is a choice between using spreadsheets or financial software. Spreadsheets are easy to use and suitable for small consolidations, but may not be suitable for large consolidation groups and can be time-consuming. Financial software can make the financial reporting process faster and more effective, but may not be effective if used only once a year or if the additional value is not seen.

There are roughly two types of companies when it comes to reporting financial results: those with a delay of 2-3 months, and those that report within two weeks. To improve financial reporting, consider factors such as resources, accuracy, and the way of thinking about the process. Automation and technology can streamline the process and clear communication can improve accuracy. Overcoming fear of change and considering how to improve the process can lead to timely financial information.

Compiling annual financial statements, including consolidated financial statements for groups, is a common task at the end of the financial year. While consolidation may be required by law or demanded by banks, it can also serve as a useful tool for planning and understanding a business. Here are some tips for considering the value of consolidation.