Consolidation is a crucial step in the financial reporting process for many organisations. Especially when a company has several entities or subsidiaries, consolidating financial data is necessary to get a clear and complete overview.
But in practice, consolidation often turns out to be complex, time-consuming and error-prone. Fortunately, there are digital solutions like TriFact365 that help make this process simpler and more reliable.
What is consolidation?
Consolidation is the merging of the financial data of different parts within an organisation into a single entity. This means combining the income statements, balance sheets and cash flows of subsidiaries, sister companies or joint ventures, for example, into a single consolidated report.
Its purpose is to provide a transparent and accurate picture of the financial health of the entire organisation. This is important not only for management, but also for investors, banks and other stakeholders.
The challenges of traditional consolidation
Many companies still carry out consolidation manually in Excel. This can lead to:
- Copying and pasting errors
- Loss of overview with multiple entities
- Time-consuming reconciliation of intercompany transactions
- Lack of real-time insight
Especially when companies grow rapidly or internationalise, complexity increases rapidly. Then it becomes essential to streamline and automate processes.
The role of automation – with TriFact365
Efficient and accurate consolidation starts with automating the basics: processing purchase and sales invoices. This is where TriFact365 comes in. This platform automates the digitisation, recognition and checking of invoices. Smartly automating these processes creates a reliable data base you can build on.
What makes TriFact365 valuable in the consolidation process?
- Fast and error-free invoice processing, making figures available sooner
- Real-time insight into open items per entity
- Seamless integration with accounting and ERP systems
- Control functions such as audit trails and validations ensure reliable data
Although TriFact365 is not a consolidation software, it plays an important role in improving data quality and efficiency within your financial records – a foundation on which you can then perform consolidation much more smoothly.
Smart consolidation is looking ahead
Consolidation is not a final piece of administration, but a strategic tool. With reliable, up-to-date data, you can make faster decisions, better assess risks and keep a sharp eye on your organisation’s performance.
If you want to grow as an organisation, getting your consolidation process right is essential. Start with the basics – automation of your financial records – and build a streamlined consolidation process above that. Tools like TriFact365 will help you take the right steps.
