What is a Consolidating Trial Balance?
A Consolidating Trial Balance serves as a valuable tool for Group Controllers in maintaining control and verifying the accuracy of financial transactions provided by subsidiaries. It acts as a comprehensive report that presents all financial accounts in rows, with the expectation that the total should equal zero if everything is correct. This report includes columns that list each subsidiary’s details along with a grand total. Different divisions within the organization can generate this report to meet their specific sub-consolidation needs, while the corporate headquarters can use it for overall consolidation. The ability to delve into transaction details is essential for controllers to easily investigate underlying data when necessary. An example of a Consolidating Trial Balance report is provided below.
Purpose of Consolidating Trial Balance Reports
The purpose of Consolidating Trial Balance Reports is to ensure the balance of subsidiary data before proceeding with the rest of the consolidation process. By incorporating these reports into Finance & Accounting practices, companies and organizations can improve their ability to identify issues and streamline the closing process. Moreover, these reports help mitigate the risk of delayed delivery of consolidated financials due to out-of-balance subsidiary data.
Benefits to Users
Consolidating Trial Balance Reports offer significant benefits to business users, enabling them to make informed decisions and enhance efficiency in performing their job responsibilities. These reports provide a clear overview of financial transactions and subsidiary data, allowing users to identify imbalances or discrepancies early on. Early detection of issues facilitates prompt corrective actions, ensuring data accuracy and integrity throughout the consolidation process. Furthermore, the ability to examine underlying transactions provides users with a deeper understanding of financial details, enabling analysis of trends, identification of areas for improvement, and making more informed strategic decisions. By utilizing Consolidating Trial Balance Reports, business users can streamline workflows, reduce manual effort, optimize time, and ultimately increase productivity and effectiveness in contributing to the organization’s success.
Consolidating Trial Balance Report Example
Here is an example of a Consolidating Trial Balance report.
You can find hundreds of additional examples here.
Who Uses This Type of Consolidation Report?
The typical users of this type of consolidation report are: Controllers and Accountants.
Other Consolidation Reports Often Used in Conjunction with Consolidating Trial Balance Reports
Progressive Finance & Accounting Departments sometimes use several different Consolidating Trial Balance Reports, along with intercompany reports, profit & loss, balance sheet and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Acumatica, Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.
In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards
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