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Consolidate – this is what the term means

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The concept of consolidation is used in various fields, and not only in economics. The term can have different meanings depending on which area of fact you are talking about.

Common synonyms for consolidate are reinforce, stabilize or consolidate.

From the beginning, the word consolidate comes from Latin and the word consolidare which means to improve or reinforce the structure of something.

Consolidate according to the Swedish Academy
This is how the Swedish Academy

explains the concept: reinforce, secure: consolidate the company.

Consolidation as an economic term

In economics, the term is used in slightly different ways depending on the area in question. Consolidation is common terms in both consolidated financial statements and in the stock market.

As a term within group, “Consolidate” means to merge or merge several parts into a single whole.

Here are various examples of how the term consolidate is commonly used within group and accounting:

(1) the ascent of companies in another company;

(2) aggregation of balance sheets;

3) strengthening the financial position of an enterprise.

Consolidation as a term in the stock market

In the stock market, the term is used as a way of describing a stock price that moves sideways. The share price is neither moving up nor down.

Consolidate in consolidated financial statements

In consolidated financial statements , the term means that financial statements of a parent company and (at least) a subsidiary or associated company are merged into a whole.

The process often involves merging financial items such as balance sheet, income statement and cash flow to create a single financial picture of the business. In order to be presented as a whole, companies must eliminate transactions between each other.

Here you can test our tool for free for 30 days, completely without any requirements.

Why consolidate in consolidated financial statements?

Group consolidation is an important tool for creating an overall picture of a Group’s financial position in the consolidated financial statements. It provides an overview of the Group’s financial position and results of operations and is a fundamental principle of GAAP.

Consolidating also helps to keep track of the financial situation of the various subsidiaries, which allows management to plan for future investments and improve the growth and profitability of the company.

Do you find it difficult to consolidate?

Many people find it difficult to grasp, how to consolidate and create accurate reports. Often you do it too rarely and you have time to forget until the next time it is time to do your group report again.

Many companies and finance managers find it so difficult and time-consuming to consolidate that they need to bring in consulting help for this step. This can be expensive in the long run and be completely unnecessary as there are today many smart tools on the market that facilitate your consolidation.

Get consolidated reports in 1 minute

Boardeaser is one such tool that facilitates your consolidation no matter what financial system you work with today.

With our tool, you create tailor-made, fresh consolidated reports with just the click of a button.

Doesn’t that sound simple? If you’re curious, we’ll be happy to show you how it works. After the meeting, you get the opportunity to test completely freely for 30 days, without any requirements.

Here you can book a free consultation

Complicated and time-consuming group reporting?

Now you can test Boardeaser for 30 days for free!

Are you looking for a system that makes your reporting and consolidation faster and better?

With Boardeaser, you can automate the entire group reporting and save valuable time, while increasing quality.

During a demo, you will get, among other things:

  • tailored review of the platform’s features
  • answers to your questions and concerns from one of our experts
  • tips on how to work smarter (instead of harder)

Book a demo by filling out the form on the right. We will get back to you as soon as we can with suggestions for times.

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