Financial consolidation
Financial consolidation
Consolidating your financial statements
The overarching challenge
Preparing consolidated financial statements is often a complicated and demanding process that places high demands on employees’ skills, oversight and time.
At the same time, deadlines for monthly reporting are becoming tighter, and reporting requirements are growing.
As a natural consequence of globalisation, many companies expand across borders, bringing different reporting rules and practices. At the same time, groups and subgroups may be formed. Acquisitions also often raise a dilemma regarding the chart of accounts: should accounts be mapped to a common chart of accounts, or should everyone use the parent company’s chart of accounts?
Currency management in consolidation
For larger companies with branches and subsidiaries in different markets, currency differences pose a challenge during consolidation. That’s why all our solutions include efficient currency management.
Eliminating intercompany sales
A key challenge in consolidating across subsidiaries is eliminating intercompany transactions.
WHY EPM FROM ACCOBAT?
With an Accobat consolidation solution, you get full visibility into intercompany transactions, making it easy to eliminate these balances during consolidation.
Financial consolidation
Consolidating the data that underpins financial statements can be incredibly time-consuming, especially when consolidation spans several subsidiaries and involves multiple financial systems and charts of accounts.
With an automated consolidation solution from Accobat, these tasks are completed much faster and without errors. This is mainly because the manual processing of eliminations, currency management and consolidation is replaced by automated financial consolidation.
The right solution for your group
Automating and supporting financial consolidation with software enables a “fast close” process, with consolidation at every level (subgroups, the entire group, etc.). You can optimise and automate the consolidation process, reducing manual tasks and the risk of errors.
Handling fewer tasks manually also speeds up the process.
Automation also prevents errors, making it easier to create transparency, gain an overview and understand eliminations, foreign exchange adjustments, etc.
Several software solutions can handle all aspects of consolidation, including currency conversion, eliminations and the various recognition methods, such as the equity method, cost method and line-by-line consolidation—all in an automated, database-driven way. This provides assurance that you comply with the applicable accounting standards, including the Danish Financial Statements Act, GAAP and IFRS.
Accobat’s financial consolidation methodology framework also enables these solutions to handle cross-ownership, changes in ownership percentages over time, and more. They also support mapping tables that map a local chart of accounts to a group chart of accounts. The choice of software depends on the company’s size, specific needs, and preferences for design and interface.
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Streamline your process with workflow
Workflow features remove the burden of managing and reminding other stakeholders to submit their financial information. Workflow provides a structured approval process that ensures data validity and maintains an audit trail by logging all changes.
Using workflow automates the consolidation process and provides a clear overview of:
- Where you are in the process
- Who needs to do what
- Audit trail
- Controls
All transactions and actions are logged, so you can always see who did what and when. This ensures that the consolidation process is transparent and validated.
Our EPM solutions deliver results here
Good reasons to get advice from Accobat
Get the overview you need to make good decisions
With an automated, system-supported solution from Accobat, the consolidation process becomes more professional and controlled. You get an easier, less manual process and a much better overview.
Automation and system support ensure high-quality consolidation. This means you can quickly carry out ad hoc analyses and reporting to answer your business questions.
At Accobat
With many years of experience, we at Accobat have become true experts in Enterprise Performance Management, including the implementation of consolidation solutions. Our strong focus on customers means that our recommendations are always tailored to the solution that best suits your needs.
Our focused commitment has led several EPM software providers to regard us as one of their most valued partners. Our achievements have also been recognised many times by Computerworld. We consistently rank among Denmark’s top 3 EPM and BI consultancies.
Microsoft Gold Partner
Top 3 BI providers
IT Rocket of 2016, 2017,
2018, 2019, 2020 and 2021
