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TaxCalc Group Accounts

TaxCalc expands suite with group accounts tool


Accounting software suite TaxCalc has launched a group accounts add-on for its accounts production module as the developer continues its run of releasing scalable software for accounting firms.

8th May 2024
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Through its new group accounts add-on, TaxCalc aims to tackle the often complex task of preparing consolidated accounts.

The move is a logical progression from TaxCalc’s previous releases such as FRS 102 for medium and large companies and medium and large LLPs, and forms part of the Wokingham-based developer’s objective to provide a comprehensive tax and accounts solution for accountants.

The group accounts add-on is built on a single database, removing the need to re-key between accounts, the tax return and the client record, with e-signature and document management functionality available as part of the wider suite.

What’s included?

TaxCalc Group Accounts is available via a TaxCalc Accounts Production licence with an FRS 102 MLA add-on at an introductory price of £60 per consolidation. 

With the add-on purchased, users tick a box to activate a group for a particular company.

Users can then switch between the group accounts and the parent company accounts with one click, see the full group structure and select which subsidiaries they wish to consolidate.

Group relationships can be managed from a single screen to save users from having to go back to individual records in the client manager. Any intercompany transactions can be manually entered as journals within the group posting section, or they can be imported in full using the ‘import trial balance’ option.

Group notes can be edited in the same way as company notes, and users can switch between the parent company and group notes screens.

The new tool offers a group trial balance report, an extended trial balance with the parent, subsidiary and any group adjustments visible. Users can also drill down into any account on the group nominal ledger, right down to the journal entry of any of the entities within the group.

Any subsidiary directors who are not directors of the group have their transactions marked as unallocated – a reminder to make a group adjustment.

Financial statements will include both consolidated figures for the group and company figures for the parent.

Any issues for consideration will be flagged up in TaxCalc’s ‘check and finish’ area, which lists potential problems in hierarchical order. From there, users can navigate directly to the issue via hyperlinks, and make any necessary changes. Once cleared, users receive a green tick for both the parent and the group. 

‘A natural evolution’

TaxCalc chief product office Pauline Smith told AccountingWEB the group accounts add-on was a “natural evolution” for the company. 

“We’re meeting customer demand for a practice solution that scales for all firms,” said Smith. “There’s an existing need from larger practices that want group accounts, but smaller firms may have one or two groups on their books. It’s a relatively niche offering but when software isn’t able to handle it, it’s painful switching between different products.”

Dean Shepherd, director of customer education & engagement at TaxCalc, added: "Everything we’ve added, we’ve looked at the process from start to finish.

“We looked at how our competitors historically build software that consolidates multiple sets of accounts and asked: how can we make this simpler? We broke it down into key functional areas. We wanted something that is simple to switch from parent to group, and something that will work out of the box without extensive training."

He continued: “In the past, you had to set up separate clients for each subsidiary of a group and manually enter all the information for each, plus create a separate client for the group itself, then import everything in.

“The Group Accounts add-on also offers flexibility. You might not act for all group companies, only some. You don’t have to set up every client. You can just prepare the group you want to.”

Charity accounts and MTD IT testing

Next on TaxCalc’s development roadmap are charity formats, which are in development and scheduled to launch sometime in 2025.

Smith also told AccountingWEB that the developer currently plans to join the Making Tax Digital for Income Tax regime during the next phase of ‘public beta’ testing, currently slated to start in April 2025.

As previously reported, the current private beta testing is running on a legacy HMRC system and will be switched over to a new system before public tests get underway, with vendors having to redevelop their connections to HMRC in the process.

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