What is a Consolidating Cash Flow Statement?

Consolidating Cash Flow Reports are considered month end consolidation tools and are used by CFOs and Group Controllers to compare and consolidate subsidary cash flow statements. Some of the key functionality in this type of report is that it dynamically lists select subsidiaries across the columns complete with a consolidated total on the far right. The report can be shown in any currency and the user can drill down on figures to review the underlying transactions. You find an example of this type of report below.

Purpose of Consolidating Cash Flow Statements

Companies and organizations use Consolidating Cash Flow Statements to provide corporate executives with easy analysis through a single view of cash inflows and cash outflows across all subsidiaries. When used as part of good business practices in a Finance & Accounting Department, a company can improve its analytical speed and agility as well as reduce the risk that key contributors to consolidated cash flow results go undetected.

Consolidating Cash Flow Statement Example

Here is an example of a Consolidating Cash Flow report with companies listed across the columns.

Consolidating Cash Flow Statement Example

Consolidating Cash Flow Statement Example

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Who Uses This Type of Report?

The typical users of this type of report are: Executives, CFOs and Controllers.

Other Reports Often Used in Conjunction with Consolidating Cash Flow Statements

Progressive Finance & Accounting Departments sometimes use several different Consolidating Cash Flow Statements, along with consolidating profit & loss and balance sheet reports 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: 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, Acumatica, 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)

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