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How to streamline your consolidated reports with ScaleXP
Streamline your consolidated reports, save time and boost your team productivity
What is accounting consolidation?
Accounting consolidation, also known as financial consolidation, is the process of preparing a single set of accounts across multiple legal entities. For example, if a company has a trading subsidiary in the UK and one in the USA, the combined financials represent a consolidated view (see our multi-entity consolidation guide). These accounts are also called group accounts.
The concept of creating consolidated accounts is simple, but the devil is in the detail (as is so often the case). During the consolidation process, it is critical to:
- Identify and eliminate intercompany accounts including intercompany sales, cost recharges, intercompany loans and intercompany investment
- Ensure exchange rates reflect IFRS guidelines. IFRS states that the balance sheet should be converted using the average daily rate on the last day of the month. The P&L, on the other hand, should be converted at the average rate throughout the month.
- Ensure that for metrics and KPIs, information is included from all subsidiaries.
While these steps sound straightforward, complexity increases over time. Consider calculating a YTD figure.
Best practice would stipulate that each monthly value is calculated, the appropriate FX rate for that month is applied, and then the individual monthly numbers are totalled. Tracking the correct FX rate for each number soon becomes tedious.
How does ScaleXP consolidate my financials?
The consolidation process in ScaleXP takes just 2 minutes:
- You click one button to import the data from your accounting systems.
- You review the results, with any potential errors automatically flagged for you.
That’s it, it’s so simple.And just in case you are worried about step two, the potential errors, this is typically the result of a newnominalaccounting or general ledger code. When this happens, we flag the account for you, so you can ensure that it is correctly mapped in the group accounts.
Our studies have found that companies save a whopping 3–5 days during the close process by using ScaleXP to consolidate. Now that’s huge!
What are the benefits of using software for consolidation?
Financial consolidation software simplifies one of the most tedious aspects of the close process. The benefits are numerous:
- Your accounts are always up-to-date
- You will save 3–5 days during the close process
- Comparisons across the group – including tracking a budget or the latest forecast – are easy
- Errors are reduced, and the results are fully audit-ready.
Can I import data from different countries and from different accounting systems?
Yes. ScaleXP connects directly to Xero, QuickBooks Online and Zoho Books, and entities on other ledgers can be added through trial balance uploads, so the whole group reports in one consolidated view.
Do all entities need a consistent chart of accounts?
No, a consistent chart of accounts is not required. The ScaleXP software is flexible enough for you to have a different chart of accounts in each entity.
At the group level, you can combine accounts from the subsidiaries exactly as you want to see them, providing you maximum flexibility.
Can I perform budget vs. actual reporting for my consolidated group?
Yes, of course! You can include a budget for the entire group, for one specific legal entity, or even for a single department. Budget data can be imported from the accounting system or loaded directly into ScaleXP from a spreadsheet.
What is the maximum number of companies in a consolidated group?
You can consolidate up to 50 entities.
If you need more than this, just get in touch, and we’ll see if we can help.
Does ScaleXP support intercompany eliminations?
Yep! The software makes it easy to eliminate entire accounts at the consolidated level. We also support consolidation journals.
Frequently asked questions
How do finance teams streamline consolidated reports across multiple entities?
Finance teams streamline consolidated reports by replacing spreadsheet roll-ups with software that pulls every entity’s ledger automatically, and ScaleXP does exactly that. ScaleXP connects to Xero, QuickBooks Online and Zoho Books, imports each entity’s results, maps the charts of accounts and applies FX translation and intercompany eliminations in one consolidated view. The finance team reviews a group P&L, balance sheet and KPIs instead of stitching exports together by hand. Companies using ScaleXP save 3–5 days during the close, which means consolidated reports reach the board sooner and with numbers everyone trusts.
Can ScaleXP turn consolidated reports into a group board pack automatically?
Yes, ScaleXP turns consolidated numbers from Xero, QuickBooks Online and Zoho Books straight into a PowerPoint board pack and live dashboards. Every entity syncs automatically, so the group P&L, balance sheet and budget vs actuals refresh without manual rework, and presentation mode lets directors drill down from a group figure to the entity behind it. John, Chief Financial Officer at Nourish Care, puts it simply: “We have been able to significantly reduce the time to prepare our monthly reporting packs consolidating 6 business entities, feeding into a group board pack at the click of a button with 100% accuracy.”
How does ScaleXP handle multi-currency consolidation for international groups?
ScaleXP handles multi-currency consolidation by translating every subsidiary into the group reporting currency automatically, applying the correct exchange rates in line with IFRS. Finance teams no longer track rates by period in a spreadsheet or rebuild translation formulas every month. ScaleXP pulls each entity from Xero, QuickBooks Online or Zoho Books in its local currency, translates it, eliminates intercompany balances and presents one clean group view. The result is consolidated financial statements that hold up to auditor and investor scrutiny, produced in a fraction of the effort a manual process demands.
What does a finance team get from ScaleXP beyond consolidated financial statements?
Beyond consolidated financial statements, ScaleXP gives finance teams group-wide KPIs, forecasts and board-ready reporting in one place. ScaleXP calculates SaaS metrics such as MRR, ARR, churn and net revenue retention across every entity, and links HubSpot, Salesforce or Pipedrive so revenue can be cut by customer segment. Budget vs actuals and forecasts sit alongside the consolidated P&L, and the AI report builder answers ad hoc questions without a new spreadsheet. Leadership sees one version of the truth for the whole group, and finance spends its time explaining performance rather than assembling it.
How ScaleXP does this
ScaleXP consolidates multiple Xero, QuickBooks and Zoho Books entities into one group view. See ScaleXP’s consolidation