A considerable number of companies in the UK operate under the partial or entire ownership of a bigger parent company. This means that financial statements must be prepared differently to provide a holistic view of business performance for the board and investors of the parent company. To create a single version of the truth, the financial reports of the smaller subsidiaries need to be consolidated.
Group consolidation is one of the most technically difficult areas for accountants, particularly when subsidiaries may be in different currencies, on different general ledger systems, or have differing charts of accounts.
Many national and international businesses can find group consolidation a logistical nightmare, with the risk of mistakes high and the potential penalties for errors even higher.
Read our eBook to discover how using software can improve your group consolidation process.