Author: BrizoSystem
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Centralised vs. Decentralised Financial Consolidation: Which Approach is Right for You?
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…
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Common Mistakes in Financial Consolidation and How to Avoid Them
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…
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Financial Consolidation for Companies with Different Fiscal Year Starts: Challenges and Solutions
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…
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Two Methods for Elimination Entries: Which Approach is Best for Your Business?
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…
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Common Elimination Entries for Balance Sheet (BS): A Practical Guide
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…
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Introducing Auto-Elimination in BrizoSystem: Streamline Your Consolidation Process
Financial consolidation can be a complex and time-consuming process, especially when dealing with intercompany transactions and eliminations. To simplify this process, BrizoSystem is excited to introduce its new Auto-Elimination feature. This innovative tool allows users to automate the elimination of intercompany transactions, saving time, reducing errors, and ensuring compliance with accounting standards. In this blog, we’ll explore…
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Common Elimination Entries for Profit and Loss (P&L): A Comprehensive Guide
Financial consolidation for multi-entity businesses involves eliminating intercompany transactions to ensure accurate and compliant reporting. These adjustments prevent double counting and avoid inflating profits or expenses. Below, we discuss common elimination entries for the P&L and provide examples to help you understand their purpose and application. 1. Intercompany Sales and Purchases Elimination Description:This eliminates revenue…
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Introducing Entity-Level Elimination Method Selection in BrizoSystem
BrizoSystem is committed to offering tools that adapt to your business’s unique needs. Our latest feature allows users to select their preferred elimination method for each organisation. Whether you prefer to input eliminations at the group level or at the subsidiary level, this new flexibility ensures your financial consolidation process aligns seamlessly with your workflows.…
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5 Common Financial Reporting Mistakes (And How to Avoid Them)
Financial reporting is the cornerstone of effective decision-making. However, even small mistakes can lead to inaccurate insights, poor decisions, or compliance risks. Here are five common financial reporting pitfalls and how to avoid them. 1. Inaccurate or Incomplete Data When financial data is inaccurate or incomplete, reports lose their reliability. This often happens due to…
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New Feature: Drill Down to Invoice Items from Xero and QuickBooks
We are thrilled to announce a powerful new feature in BrizoSystem—Invoice Retrieval from Xero and QuickBooks. With this enhancement, users can now drill down from reports to view invoice-level details, providing unparalleled clarity and precision in financial analysis. Why This Feature Matters When analyzing financial reports, knowing the source of the numbers is critical. This…