Consolidated financial statements group together all the related entities (locations, divisions, subsidiaries, legal structures, etc.) that are under a single parent company’s control. This gives the reader a unified “operational” view of the consolidated entities. Consolidation eliminates all inter-group activities and balances to report transactions with external third parties as if the entire group of companies was operating as a single entity.
Addressing the challenges of consolidation using a cloud financial management system can propel the finance function and an organisation forward. Accounting staff perform higher valued work and spend less time with the manual assembly and reconciliation when the consolidation process becomes automated.