Consolidating financial statements eliminating entries
When your entities are in different countries, things get more complicated.Every government in the world wants to collect more tax. Companies go through consolidation because outsiders don’t care about all your inter-company back and forth.
At the end of the day, consolidation is really about addition – adding in balancing entries. Here are some of the complexities we see regularly: 1.
We often use this ability to get elimination entries into systems and out of spreadsheets.
Database driven ledgers are preferable to spreadsheets because they are far better at ensuring data consistency.
Consolidation is a basic accounting concept that’s simple in theory, but complex in the real world.
In this post, we’ll cover the basics of consolidation, some of the challenges that emerge and possible solutions.