Best Consolidation Software & Tools

Consolidation software combines the financial statements of several companies within a group into consolidated financial statements. It takes over the data of the individual entities, matches and eliminates intercompany relationships, translates foreign currencies and produces the statements under HGB or IFRS. Besides legal consolidation for the statutory statements, many solutions also cover management consolidation for planning and internal reporting.

The software is aimed at group accounting, controlling and finance management in groups with several entities. It shortens the closing process, makes every entry traceable and replaces error-prone spreadsheets.

To be included in the Consolidation category, a solution should offer the following features:

• Data Import: Automatically takes over individual financial statements and reporting packages of the entities from the source systems.
• Intercompany Reconciliation: Matches intercompany receivables, payables, expenses and income and shows differences.
• Consolidation Entries: Performs capital, debt and income and expense consolidation as well as the elimination of intercompany profits.
• Currency Translation: Translates financial statements in foreign currency into the group currency in line with the applicable accounting standards.
• Audit Trail and Reporting: Documents every entry in an audit-proof way and produces the consolidated balance sheet, income statement and notes.