The financial accounting of an organisation which owns multiple companies presupposes the need for financial consolidation as an umbrella structure.
The primary need for consolidated financial reports most often arises from the usual complicated regulatory demands or internal accounting standards. On the other hand, consolidated financial reports offer the best picture of overall company business in a way that presents all its affairs under a common denominator, thus enabling straightforward and responsible company management.
By its very nature, financial consolidation entails the alignment of business data at balance sheet level.
The process of data alignment at balance level is demonstrated in the following diagram:
The process of financial consolidation acquires added complexity for the reason that organisations within a larger company, along with the complexity of the consolidation process itself, have different financial-accounting or ERP systems.
ALFATEC Group is able to offer you its know-how, generated in many projects in this domain, as well as leading global technology solutions, in order to successfully carry out the best possible financial consolidation project for your company.