Companies that need to consolidate multiple legal entities or departments for reporting purposes often face challenges. They are at a disadvantage when compared to organizations that use a single General Ledger or ERP system to house all management and statutory reports.
The ERP is not the most efficient place to perform consolidations unless all operations are run on the ERP, which is not typical.
Building a Financial Consolidation Model
Financial Consolidation begins with understanding your data and starting with a modeling exercise. The goal is to represent what the enterprise’s finances would look like if they were consolidated into a single entity and chart of accounts. In doing this, the consolidation translates all figures into one or more reporting currencies. It maps data from multiple entities and ERP systems into to a consolidated chart of accounts.
Although it is a model, Financial Consolidation is crucial to understanding the financial performance of the enterprise. In addition to the model, other factors impact Financial Consolidation, including intercompany sales, partial ownership interests, and inventory accounting.
QueBIT has the expertise and solutions to help you navigate and effectively manage the requirements of the Financial Consolidation process.
Features of QueBIT’s Financial Consolidation Solution:
- Consolidate multiple legal entities or departments for management and statutory reporting
- Real-time FASB 52 compliant currency translation
- Real-time Cumulative Translation Adjustment (CTA) calculation
- The ability to acquire data from multiple ERP/GL data sources in Excel, in flat file, and via direct ODBC connectivity
- Audit trails and security
- Controlled, balanced, authorized, and auditable journal entries, including automated recurring and reversing journals, individual or batch posting of journals, and automated eliminating journals for inter-company balances
- Reconciliation reporting for inter-company balances
- Excel and web user interfaces for ad-hoc analysis and standard reporting
- Rich reporting capability designed for use by financial analysts, including delivery of management and statutory reporting
- Available on-premise or in the cloud
- Customized documentation package
- Administrative and end user training and support