Consolidate Smarter, Report Better.

Many SMEs believe financial consolidation is only for large enterprises, but even smaller businesses can benefit from it. Why SMEs Should Consider Financial Consolidation ✔ Better Financial Visibility: Consolidating financials across multiple entities gives a clearer picture of overall business health. ✔ Easier Decision-Making: Helps SMEs make informed strategic decisions based on accurate financial data.…

Financial consolidation is already a complex process, requiring businesses to aggregate financial data across multiple subsidiaries, often spanning different countries, currencies, and regulatory environments. The challenge is further amplified when companies operate under different accounting standards. The two most widely recognised frameworks—International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)—introduce variations in how…

Financial consolidation has long been a challenging task for finance teams, particularly for companies managing multiple subsidiaries. The process involves aggregating financial data from different entities, ensuring consistency in reporting, handling currency translations, and eliminating intercompany transactions. Traditionally, financial consolidation is a time-consuming, manual process that requires significant effort from accountants and finance professionals. The…

When managing multiple entities, companies must choose between centralised and decentralised financial consolidation. Each approach has pros and cons—let’s explore them. Centralised Consolidation In this approach, the parent company controls and consolidates all financial data. ✅ Advantages: ❌ Challenges: Decentralised Consolidation Subsidiaries handle their own financial data, and reports are later combined at the group…

Financial consolidation is essential for businesses managing multiple entities, but the process can be complex and prone to errors. Here are some of the most common mistakes companies make and how to avoid them. 1. Not Eliminating Intercompany Transactions Properly Intercompany sales, loans, and expenses must be eliminated to avoid double counting. Failing to do…

Introduction Financial consolidation is a critical process for companies with multiple subsidiaries or business units, as it combines financial data from various entities into a single, unified report. This process is essential for providing stakeholders with a clear picture of the organization’s overall financial health. However, when subsidiaries operate under different fiscal year starts, the…

Financial consolidation relies heavily on accurate elimination entries to ensure that intercompany transactions don’t distort consolidated results. To accommodate diverse business needs, there are two primary methods for handling these entries, both of which are now supported in BrizoSystem. Here’s an exploration of these methods, their advantages, and their potential drawbacks to help you decide…

When preparing consolidated financial statements, balance sheet eliminations ensure that intercompany transactions do not inflate group assets, liabilities, or equity. These adjustments are vital for accurate representation of a company’s financial position. Here, we explore common elimination entries for the balance sheet, along with examples and explanations. 1. Intercompany Loans and Advances Elimination Description:Eliminates loans…