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.
Mastering the art of consolidated financial statements
- 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.
- 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.