Consolidated financial statements – everything you need to know and then some
Consolidated financial statements are separate accounts that are made in your parent company once a year in addition to your regular annual report. Here you can read about what consolidated financial statements are and what is required to do one correctly. You will also find information about important parts that are included as well as articles about associated responsibilities and tasks.
What is consolidated financial statements?
A consolidated financial statement covers a financial year and is made to describe the parent company and the financial status of the subsidiaries together, as a common entity. The report is to show what the financial situation looks like for your group.
Do you know if your company meets the criteria that exist when preparing a consolidated financial statement? Or when it might be good to do consolidated financial statements anyway, even if your company doesn’t formally need it? In this article you can read more about formal requirements, the history behind consolidated financial statements and why it is good to do. Read about: Formal requirements for consolidated financial statements
We have also gathered the things that can be good to consider when you are going to make a consolidated financial statement. In these two articles you can, among other things, read more about what should be included, exceptions that exist and who is responsible for what.
Avoid common mistakes in group consolidation
Group consolidation and consolidated financial statements are perceived by many as a bit tricky and there are a few things to look out for when it is time for consolidation. For this reason, we have talked to John Valfridsson, a specialist in consolidated financial statements about the most common mistakes and how to avoid them occurring.
He points out, among other things, how important it is to set up a structured process for it to be right and easy to handle over time. Read all about this here:
How you can make consolidated financial statements something extra
There are a few things that are good to keep in mind when you are going to do a consolidated financial statement. You need to know what it should contain, how often it should be done and which companies consolidated financial statements actually apply to.
But in addition to important facts, there are also tricks that will make your consolidated financial statements something out of the ordinary. With the help of, among other things, design, storytelling and a dose of personality, you can make a consolidated financial statement that feels elaborate, creates interest and strengthens your brand.
Because consolidated financial statements don’t have to be boring! In this article you can read about how to create something extra:
How to make a good consolidated financial statement
Have you taken the temperature of your group?
Do you know how your group is doing, for real? If you want to get a faster overview, better insight and more knowledge of how your group is doing for real, you need to digitize your follow-up.
Our board professional Tim Hansen has 25 years of experience in management work in group companies. In this article, he talks about how you can gain better insight into the business and make yourself more agile:
How is the group doing – for real?
How to succeed with your group consolidation!
Do you want to know how to succeed with your consolidated financial statements and create a functioning structure that lasts over time?
Watch our popular free, recorded webinar with John Valfridsson, specialist in consolidated financial statements and consolidation.
Get a handle on acquisition analytics; An important cornerstone of your consolidated financial statements
When your parent company acquires a company or parts of a company, you should conduct an acquisition analysis to find any surplus values or goodwill. An acquisition analysis is one of the cornerstones of a consolidated financial statement and therefore it is important that it is both done and recorded correctly.
Should your company buy shares in another company? Learn more about requirements, cost, goodwill and excess values, and any errors that may occur: All about acquisition analysis
Don’t forget your group consolidation
Group consolidation is a term that often comes up when talking about consolidated financial statements. When you do a group consolidation, you eliminate your companies’ internal business with each other. You delete internal transactions between the companies that are part of your group and make the companies a common entity in your consolidated financial statements. When you do that, the economy looks the same as it does for a regular company, even though it is now common to all the companies.
Many companies still use Excel for their consolidation. But managing this work manually not only takes a lot of time, it also increases the risk of errors. By digitizing and to some extent also automating processes, you reduce costs and free up time for other parts of your work.
Here you can read more about the benefits of digital solutions for group consolidation: Group consolidation in Excel? Time to think again!
We help you create a secure and more efficient consolidation. Learn more about our automated consolidation and reporting platform:
How to get consolidated reports in 1 minute
Efficient group reporting and corporate governance
Need to get started quickly with your group consolidation?
Having a functioning system is essential for a smooth consolidation process. Managing your consolidation in Excel often entails a large manual effort that, in addition to taking a lot of time, also increases the risks of errors and that you work with non-updated data.
With Boardeaser, you automate your group reporting and can create consolidated reports in 1 minute per company.
But as we are all painfully aware, it can take some time to get started quickly with a system and sometimes it is so bad that we get a system but postpone the future to start using it until the time “Then we have some time to spare” Do you recognize yourself?
Boardeaser has developed a fast and structured onboarding procedure, all to keep you up and running in no time. With us, you get your very own contact person who you can ask questions to as they arise. Everything is completely cost-free.
Read all about our smooth process here:
Get started quickly with your group consolidation with our onboarding process
Is it time to write a CEO report? This is what you should keep in mind in your group reporting!
As CEO of a company and a group, you are responsible for collecting financial and strategic information, reporting any changes and providing the board with the necessary basis to assess how the company is doing. With the help of well-thought-out reporting with the right key figures, you make it easier for your board to make decisions that bring your business closer to your success goals.
A CEO report should be produced once a month (but there may be a need to do it even more often). Exactly what should go into your CEO report depends on what your board wants. But some important areas that should always be included are finances, business-driven activities, upcoming events and scenarios, follow-up of set goals and personnel and organization.
Read more about what a CEO report means here:
How to write a good CEO report!
Good reporting can be the be-all and end-all for how your business is doing. If you and your board do not keep track of important figures, equity, cash flow and other things, the risk of you ending up insolvent increases.
To create a clear CEO report, you need, among other things, to produce well-thought-out key figures. With the right key figures, it will be easier to follow how your company is doing, compare yourself with other companies and continue to drive you towards success.
If you want to know more about which KPIs are important to include and what is good to consider in your reporting, this is an article for you:
How to choose important key figures
You can also visualize your key performance indicators. This makes it easier for your recipient to absorb, understand and use your numbers. With the help of customized graphs and tables, you can create a simple and insightful reporting.
As part of our platform, we have created Boardeaser KPI Analytics. Here you can analyze key figures, tailor your reporting and quickly and easily create graphs, tables and key figures. Want to know more about it? Then you should take a look here:
Visualize your key figures automatically
At the Swedish Companies Registration Office you can read more about what applies to reporting for groups from a legal perspective.
Are you also going to create a budget? Here’s how to do it quickly and easily!
A budget is often part of what you need to report to your board. But making a budget is not always easy. It can be a challenge in several ways, not least if you don’t have a good tool. With the right tools, you can quickly and easily create a budget with just a few steps, saving both time and unnecessary hassle.
For example, how does simple downloading, quick editing, automatic comparisons and included reconciliation sound? We make it easier to manage and follow up your budget work like this: How to create a budget in a few simple steps
How to get even better insight, decision support and forecasts
Good group reporting makes it easier to achieve goals and create success for a company. When key figures, hygiene factors and important measurement points are set up and in place, there are several ways to maximize the benefit of the financial data, reduce the risk of unwanted change and work proactively.
One method is the so-called Rolling 12, which is also called rolling reporting or rolling forecasting. With the help of Rolling 12 reporting, you and your company can, among other things, follow your progress at more frequent intervals, create trend reports that show turnover, profitability and other key figures, and take your analyzes to a whole new level.
Read more about Rolling 12 and what advantages and disadvantages are good to know:
Advantages and disadvantages of the rolling 12 reporting method
Is it time for a financial report? How to present it in the best way
A common mistake when creating and presenting a financial report (or other company reports) is not to think about how much prior knowledge the person who will receive and listen has. If you do not adapt word choice, structure and content to the person who will see and read your report, you risk that important information and important messages do not reach the recipient. And that you lose interest with your target audience.
We have gathered our best advice and tips on how to do it and present a financial report beyond the ordinary. In this article, you can read about everything from the importance of knowledge about your audience to universal tricks to use when presenting. How to present financial reports so that everyone understands
Book a free demo
Book a free demo and get insight into how we can streamline and improve the quality of your group reporting.
Do you need to get started quickly with your group consolidation? With us, you get an onboarding process when you become a customer with us – at no extra cost.
Do you manage your group consolidation in Excel? You’re not alone. Minimize the risk of errors and increase report quality with secure, digital tools.
John Valfridsson, a specialist in group consolidation, will guide you on how to avoid the 3 most common mistakes in group consolidation.
Is it time for group consolidation? Get an idea of what you should have in place for and what you should keep in mind in the meantime.
Do you need to prepare consolidated financial statements? What should they actually contain? Read all about how to prepare consolidated financial statements.
According to board professional Tim Hansen, you should digitize the follow-up if you want to keep track of the group – for real.