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Revolutionise your group accounts: Tools and tips for success

11th Jun 2024
Brought to you by
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Award-winning cloud accounting software for multi-company businesses.

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Preparing group consolidated accounts can be daunting for finance teams, especially when relying on manual processes and outdated tools. If you're buried in spreadsheets and repetitive tasks, you're not alone. Many businesses face similar challenges, particularly in today's flexible, hybrid working environment. This guide addresses the common pain points experienced by finance teams and offers practical solutions to streamline the consolidation process. 

Benefits of a cloud-based accounting solution 

Implementing cloud-based tools can have a profound impact on your finance team. Here’s how: 

Enhanced efficiency: Cloud-based accounting tools automate repetitive manual processes, reducing your team’s workload and allowing them to focus on analysis and strategic planning. 

Improved accuracy: Automation minimises human error, ensuring accurate and reliable financial data and reducing the time spent on corrections. 

Better collaboration: Cloud-based platforms enable real-time collaboration, allowing seamless teamwork and greater visibility across the organisation. 

Increased morale: Increasing productivity and weeding out manual tasks improves job satisfaction, boosting morale and improving general business performance. 

The specific challenges of group consolidated accounts 

Beyond the general benefits of cloud-based accounting, it can also transform how your team tackles more complex tasks. Group consolidated accounts is one example. As this involves merging financial data from multiple entities into a single set of financial statements, it can be time-consuming and complicated. It is also mandatory for most companies, so there is no room for error or complacency. Beyond compliance, consolidated accounts provide clear financial insights to management and stakeholders, so it’s a crucial activity to get right. 

Common issues faced in manual consolidation 

Manual consolidation is fraught with issues. It is a long, painstaking process and prone to errors, with complex spreadsheets often leading to inefficiencies and inaccuracies. These issues cause delays in reporting, which then has a negative impact on strategic decision-making. Relying on spreadsheets also makes collaborative work challenging and unreliable, as access can be tricky and version control can become problematic. 

Solutions for efficient consolidation 

To overcome these challenges, many finance teams are turning to technology. Automation tools can transform the consolidation process by streamlining various aspects: 

Data collation and management: Cloud-based software gathers and updates data from multiple subsidiaries quickly and accurately, reducing manual entry and minimising errors. Recording intercompany loans and interest income accurately ensures reliable financial reporting. Automated handling of intercompany transactions keeps accounts balanced and simplifies eliminations. 

Currency and expense management: Advanced tools handle multicurrency transactions seamlessly, translating results into a common base currency. Automating the allocation of payables and payroll expenses across subsidiaries saves time and enhances accuracy. Software that automates the revaluation of foreign currency accounts ensures accurate month-end reporting. 

Comprehensive reporting and adjustments: These tools offer detailed reporting at both the entity and group levels, aiding strategic decision-making with timely and accurate financial insights. Adjustments at the group level without affecting subsidiary data provide granular control over financial reporting. 

Efficiency in closing books and issuing statements: Properly closing the books of both subsidiaries and the parent company at the end of each period ensures data integrity. A thorough review of consolidated financial statements before distribution is crucial for accuracy. 

Beyond consolidation: transitioning to AccountsIQ’s real-time cloud accounting solution  

Many finance teams are moving away from spreadsheets due to their risks and inefficiencies. In addition to advanced group consolidation capabilities, AccountsIQ offers combined accounting and consolidation features, streamlining the entire process on one platform 

AccountsIQ stands out by capturing and analysing accurate, real-time data, providing actionable insights through KPIs, financial modeling, and scenario planning. With multi-dimensional analysis and over 250 pre-built reports, it supports faster decision-making. Its flexibility, open API, and seamless integration with systems like CRMs and banks ensure it scales with your business needs. Book a demo today! 

 

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