Finance confronts a daunting and time-intensive challenge in presenting a consolidated perspective on group-wide financial performance. Handling subsidiary financial statements, mergers and acquisitions, foreign currency translations, and intercompany transactions adds further layers of complexity. Hence, it comes as no surprise that numerous organizations devote significant resources to this endeavour.
The Financial Consolidation solution can minimize manual labor, expedite statutory reporting, and equip internal stakeholders with timely access to critical information.
Data Collection and Mapping
The first step in consolidation is to collect financial data from all the subsidiary companies. This data may come from different accounting systems, so it needs to be mapped and transformed to ensure consistency and accuracy. Consolidation solutions can automate this process using data integration tools that connect to different data sources, extract data, and transform it into a standard format.
Intercompany Eliminations
Intercompany transactions must be eliminated when consolidating financial statements to avoid double counting. Consolidation solutions can automate this process by identifying and eliminating intercompany transactions in real time. This ensures that the consolidated financial statements accurately reflect the organization’s financial position.
Currency Translation
Subsidiary companies may operate in different currencies, which can complicate the consolidation process. Consolidation solutions can automate currency translation by applying exchange rates to financial data in different currencies.
Reporting
Consolidation solutions can generate comprehensive reports that clearly show an organization’s financial health. In addition, these reports can be customized to meet the specific needs of stakeholders, such as investors, auditors, and regulators.
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Don’t let data chaos hold you back any longer. Book your free demo now and unlock the potential of efficient data consolidation! Our team is eagerly waiting to assist you on this transformative journey towards streamlined consolidation.
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