Financial consolidation system

Establish step-by-step processes to keep track of tasks that need to be completed, such as during a period close.

Tasks are assigned to specific roles or employees, with clearly defined deadlines. Each task can be directly linked to the relevant activity in the system, allowing it to be executed directly from the task management interface. The task management system provides an overview of each individual’s progress and ensures deadlines are met.

Manual journal entries in the group accounts must be recorded and documented according to the same rules as in a standard accounting system. During a hectic closing phase, there may be a need to post entries directly in a subsidiary and/or in an elimination entity, where it is crucial to quickly see the results of the postings.

With the consolidation solution, this process is managed securely and efficiently, offering features such as the reuse of templates and the option for automatic reversal of transactions in subsequent periods.

In addition to eliminations during the acquisition and sale of subsidiaries and manual journal entries, there is often a need to eliminate intercompany transactions on a general basis. This can be done by importing transactions with counterparty codes and generating elimination entries based on these, creating specific group accounts that can be offset against each other, or manually eliminating balances in a tabular format.

All of these methods are efficiently managed by the Profitbase consolidation tool, ensuring that documentation requirements are also met.

Reconciliations between group companies are crucial for producing accurate consolidated financial statements. An invoice recorded in one company but not in another can directly impact the bottom line.

The Profitbase consolidation tool aggregates balances from all group companies and highlights discrepancies between them, with the ability to drill down into underlying accounts and transactions. By performing these reconciliations continuously throughout the period, the period close can be completed much faster.

After significant changes in the group structure or the start of a new financial year, there may be a need to revert to the numbers as they appeared before the changes were made.

With the Profitbase consolidation tool, it’s easy to create new versions while retaining the old ones for this purpose.

In group reporting, data often needs to be converted into one or more group currencies. There may be a desire to convert functional currencies based on exchange rates sourced from external official sources. This can become challenging if the group operates with multiple group currencies.

Additionally, there may be a need to report in various functional currencies specific to each company within the group. If data is captured at the transaction level, it might also be desirable to include the transaction currency, enabling comparisons between companies in the same currency.

Keeping track of and recording the acquisition and disposal of subsidiaries, along with the associated entries and eliminations, can be a time-consuming task and a potential source of errors.

This is especially true when dealing with companies in different currencies, minority interests, and changes in ownership, group structure, and equity within the companies.

The Profitbase acquisition module handles all these aspects in a secure and efficient manner, including the calculation and amortization of goodwill or negative goodwill.

The CFO Platform comes with a standard report setup for “official” reporting in Power BI, which directly pulls data from the consolidation tool.

Control reports aggregate various datasets from ERP systems, budgets/forecasts, and the consolidation solution.

Additionally, the consolidation tool includes essential control reports to ensure that additional postings and eliminations are accurately recorded before being presented in official reports.

The reporting module allows for the creation of tailored report layouts, which can be applied to all relevant control reports. These reports can also be exported to Power BI and shared with external parties who require insights.