Finance

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.

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.

Unifying a group's Chart of Accounts can simplify the consolidation process and reduce the need for adjustments.

The consolidation process can be frustrating and time-consuming, with mismatches and illogical results leading to last-minute rushes to meet reporting deadlines. To make the consolidation process less painful, it may be helpful to start collecting data earlier and unifying group accounting principles.