Group Consolidation Accounting in 2026: Key Challenges and How to Overcome Them

As group structures become more sophisticated and reporting expectations continue to rise, finance teams face increasing pressure to deliver accurate, compliant consolidated accounts within tight deadlines.

While the fundamentals of consolidation have not changed, the challenges surrounding regulation, data quality, technology and scale have evolved significantly in recent years. This article explores the key challenges of group consolidation accounting today and how modern approaches and tools can help overcome them.

What is group consolidation accounting?

Group consolidation accounting is the process of combining the financial results of a parent company and its subsidiaries into a single set of financial statements. This involves:

· Aggregating financial data across entities

· Eliminating inter-company transactions and balances

· Converting foreign currency results

· Accounting for non-controlling interests and complex ownership structures

The aim is to present a clear and accurate picture of the group’s overall financial position and performance for stakeholders such as investors, regulators and boards.

Key challenges of group consolidation in 2026

1. Outdated tools and spreadsheet dependency

Many finance teams still rely heavily on spreadsheets for consolidation. While familiar, spreadsheets are increasingly unsuitable for complex group structures due to:

· High risk of manual errors

· Limited audit trails and version control

· Difficulty managing multiple contributors

· Time-consuming updates and reconciliations

As groups grow or restructure, spreadsheet-based consolidation becomes harder to control and less reliable.
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2. Increasing regulatory and reporting requirements

Keeping up with regulatory change remains a significant challenge. Finance teams must navigate:

· Ongoing updates to IFRS and local GAAP

· Enhanced iXBRL and digital reporting requirements

· Greater scrutiny from regulators and auditors

· Growing expectations around ESG and sustainability reporting, which increasingly link into group reporting processes

Consolidated accounts must not only be accurate but also structured and tagged correctly to meet evolving filing and transparency requirements.
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3. Inter-company transactions and reconciliations

Inter-company balances and transactions are one of the most common causes of consolidation issues. Challenges include:

· Inconsistent recording across entities

· Timing differences between group companies

· Incomplete or inaccurate eliminations

· Difficulty tracking adjustments and approvals

Without strong controls and clear workflows, these issues can lead to misstatements, delays and audit complications.
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4. Multiple data sources and systems

Many groups operate across different regions using multiple ERPs, accounting systems and charts of accounts. This can result in:

· Inconsistent data formats and structures

· Manual mapping and rework at consolidation stage

· Increased risk of errors and omissions

Bringing together reliable and standardised data is often one of the most time-consuming parts of the consolidation process.

How modern technology supports better group consolidation

Advances in consolidation and financial reporting software have transformed how finance teams manage these challenges. Modern cloud-enabled solutions support group consolidation by:

· Centralising data from multiple entities and systems

· Providing real-time visibility into group results

· Maintaining full audit trails and governance controls

· Supporting regulatory compliance and digital reporting requirements

Rather than simply replacing spreadsheets, today’s tools help finance teams improve accuracy, efficiency and confidence in their consolidated reporting.

Best practices for effective group consolidation

To improve consolidation outcomes, finance teams should consider:

· Standardising charts of accounts and reporting templates across the group

· Implementing clear controls and approval workflows

· Reducing manual data handling wherever possible

· Using technology that supports scalability as the group evolves

· Ensuring consolidation processes are audit-ready from the outset

These practices not only reduce risk but also free up time for analysis and strategic insight.

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Group consolidation accounting continues to present significant challenges, particularly as regulatory expectations rise and group structures become more complex. However, with the right processes and modern technology in place, organisations can move away from manual and error-prone methods towards more efficient, transparent and reliable consolidation.

By embracing automation, improving data quality and staying ahead of regulatory change, finance teams can ensure their consolidated accounts meet the needs of stakeholders today and into the future.

To see how this can work in practice, explore Caseware Cloud Financials and request a demo to discover how it could support your group consolidation process.