Business and management consolidation
For companies that have operations in more countries / branches / offices and more products and services, it is necessary to consolidate the business and show the performance at the group level, and then who contributed to such realization.
In order to properly present the separate units that make up the group, internal revenues and expenditures are defined. These are revenues and expenditures that are used for managerial reporting, they are not seen anywhere.
In order to consolidate the business at a sufficiently good analytical level, it is necessary to structure all items (accounts) of income and expenses. Depending on the business model and the country, it is sometimes not possible to do that in the program, so mappings are made that will give the same result in just a few more steps.
It is necessary to define internal revenues and expenditures so as to simulate separate units as separate firms operating outside the group. We do this in such a way as to determine the performance of that separate unit as accurately as possible. It can be a sector, a department or a special company within a group.
Intercompany relations and transactions are controlled in detail and eliminated from consolidation. Intercompany harmonization is done on a monthly basis (exit from company A = entry in company B).
Once we have done the codebook and chart of accounts mapping and the necessary monthly controls, we approach the elimination of mutual transactions and operational consolidation of business.
Contact
- Hong Kong, China
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+1 307 3160 225 USA
+43 660 9666 977 AUSTRIA
+386 71 301 619 SLOVENIA - office@valueanatrade.com
