How to produce financial consolidation reports from multiple Xero, Sage or QuickBooks Online accounts without using Excel
As a business owner whose company operates multiple entities, possibly across different industries or different countries, the prospect of annually preparing consolidated financial reports is, no doubt, not a task you or your team relish. The vast quantities of data that needs to be pulled together to give an overall picture of your company’s financial health can be daunting; the time required extensive; and the opportunity for human error to creep in high.
Today we’re looking at how to simplify this process and streamline your reporting.
Consolidated financial reporting requirements for medium-sized groups
Wherever you are in the world, your governing body will dictate the regulations you must follow. In this example we’re using UK regulation, as under the Companies Act 2006, Companies House require all medium-sized groups to consolidate their financial reporting and submit consolidated group accounts that include profit and loss accounts and a balance sheet.
When dealing with multiple entities, companies must ensure they have one standard reporting system in place across all their companies. They need to take into account the use of different currencies and different accounting standards in different countries, and ensure they keep up to date with ever-changing regulations.
In addition, if mistakes creep in to the financial statements as a result of human error, then this will require further work by auditors and incur further costs to your business, as well as time. Should you under-estimate the time required to consolidate all these financial statements and file late, you face penalties imposed by Companies House.
Preparing consolidated financial reports can be costly, so as a business owner, you’ll want to ensure you get it right first time.