accountsiq Cloud Accounting for Group Companies: Consolidated Accounts

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1 accountsiq Cloud Accounting for Group Companies: Consolidated Accounts

2 accountsiq Gain immediate insights into your Group s performance accountsiq is a Cloud based international accounting system continuously accessible from anywhere in the world throughout the year with no time of day constraints. It is strategically located and hosted in several Datacentres in London, USA and Australia. As such it is ideally suited for Companies with multiple subsidiaries, whether internationally or locally based, and we have clients located in 42 different countries using 33 different currencies. Using our Group Consolidation module you can easily create accurate and consolidated accounts and not just for wholly owned subsidiaries, but also partially owned and foreign currency subsidiaries as well as multi-level consolidations (i.e. groups within a group). And, if your subsidiary companies also include performance reporting (P & L, Sales Analysis, etc.) at the level of Branches, Divisions or Departments within each of the subsidiaries, then the Consolidation module will consolidate these also; resulting in the Group accounts also being available at the level of grouped (consolidated) Branches, Divisions and Departments as well. The accountsiq Group Consolidation module makes time consuming and complicated monthly consolidations quick and easy. You can obtain real-time online access to your consolidated results for the group and all the subsidiaries from one single system. Different subsidiary companies can have entirely different General Ledger Coding systems deployed, the only requirement being that the basic GL Codes be linked to a common set of General Ledger Categories and Sub- Categories for consolidation and reporting purposes. The on-screen GL Explorer allows you to examine the detail behind any of the figures in the Reports and Dashboards for both Group and Subsidiaries. You can Drill Down to intermediate levels and also right down to the lowest level of transaction detail where you can examine GL Postings and reconstruct the Transactions from whence they came (i.e. Sales and Purchase Invoices, etc). And if you have scanned the paper transactions (Orders, Delivery Notes, Invoices, etc) then these are also available (attached to the digital transactions) for scrutiny. Once set up, the process is straightforward and you can carry out repeated consolidations from multiple companies with one click. Individual accountsiq subsidiaries with similar GL Account categorisation can be linked together to consolidate into an overall parent company. You can now eliminate costly and error-prone work flow practices as a result of trying to consolidate data from different companies and systems using spreadsheets.

3 Consolidation Features 1. Consolidation of Multiple Subsidiaries (Including Sub Groups) 2. Manage Complex Ownership Arrangements 3. Handle Foreign Currency Consolidations with ease 4. Centrally Control Exchange Rates 5. Report on Actuals vs Budgets by BI Analysis Structure at Group Level Engineered to manage the consolidation of a large number of subsidiaries datasets with ease. Also handles sub-groups where the consolidated entity itself is a subsidiary of a larger group consolidation in a complex organisational corporate structures. And once set up, consolidations can be run as frequently as desired with one Click. Consolidation can include and be set up to recognise Minority Interests where the ownership is less than 100% and create the relevant postings into the consolidation entity. Each individual subsidiary can operate in its own base currency, which can differ from subsidiary to subsidiary, and deal locally with Customers and Suppliers in their many currencies. On consolidation, the results are translated into the base currency of the Group Company using stored exchange rates for each reporting period. P&L accounts are correctly translated using average period rates and Balance Sheet accounts at period end rates. No need to waste time maintaining daily exchange rates in multiple subsidiaries. Central Currency Management enables you to maintain all exchange rates in one central table. This is then used by each subsidiary company in its dealings with its own Customers, Banks and Suppliers. Currency triangulation will correctly produce the exchange rates even if the customer s currency differs from the subsidiary base currency which differs again from the group base currency. Budgets, revised budgets, actuals and variances are rolled up from subsidiary companies making it easier to view overall performance and trends across the group at any time, including BI Analysis coding (Branch, Division, Department, etc.) enabling group level BI reporting. 6. Simplify the posting of Intercompany Charges Raise intercompany Sales Invoices that automatically create Purchase Invoices in the receiving company. Purchase invoices remain unposted until approved and coded in the receiving company. Ensures that intercompany accounts remain balanced for elimination at group level, even if balances are in different currencies. 7. Month End Currency Re-valuations Provide your team with the tools to simplify the revaluation of foreign currency bank, debtor and creditor accounts at subsidiary level based on centrally maintained exchange rates. Unrealised gains (losses) are automatically posted and base currency value of assets and liabilities adjusted prior to consolidation, facilitating elimination of intercompany balances at group level. 8. Group Sales and Purchase Analysis Consolidated Sales & Purchase Analysis facilitates group-wide reporting and benchmarking where common products/services are involved. 9. Post Consolidation Adjustments Make adjustments at group level to eliminate inter-company profits etc. at group level without affecting the subsidiary figures.

4 The Consolidation Manager The Consolidation Manager can accommodate several different Consolidations. In this example there are two separate consolidations RenuMe Spa Holdings and RenuMe International. Each Entity Group has its own set of subsidiaries and an entity group can also be included as a subsidiary in a higher level consolidation. Make each subsidiary Company and the Group Company known to the Consolidation Manager and give it a name (the Entity Group ). Use the Verify Data button to make sure that all GL Categories and Sub-Categories align properly and then use the Consolidate button as often as you want. The Reports Manager The Reports manager contains a substantial number of reports. Here s a list of some of the reports available in the Consolidation Company. You can also quickly dip in and out of the subsidiary companies, without having to log out and log in again, to examine the reports available in each of the subsidiaries. Below is an example of the Consolidated Profit & Loss Report showing each of the subsidiaries side by side, including the Group Company, together with the Total of all Companies. Profit and Loss

5 The General Ledger Explorer Use the on-line General Ledger Explorer to look behind any Company s GL accounts on this or any of your reports. Compare many Datasets (Period & YTD, YTD v YTD Budget, YTD This Year v YTD Last Year, and many more). In addition, if you use Departments and/or Branches, Divisions, etc. you can further use this facility at those levels of reporting whether company consolidated or at the individual company level. Use the buttons highlighted (yellow) to expand or close up the GL Categories and Sub-Categories. Drill Down to ever decreasing levels of detail and examine the transactions from whence the GL postings arose. For example, Click on the amount (or any other amount) highlighted in blue to see the individual transactions (i.e.sales Invoices, Credit Notes, etc.) making up that amount.

6 Dashboards and KPIs The new interactive Dashboards are designed to enable you to gain insights into the results of your Group and its subsidiaries. There are a great many pre-designed Dashboards available. Dashboards are based on General Ledger, Sales and Purchases data already summarised by the consolidation process in the group company s base currency. Individual subsidiary companies dashboards and KPIs are shown in their own base currencies. Group Dashboards are refreshed each time the consolidation is re-run, whereas the individual subsidiary dashboards are continuously updated as new transactions enter the system. Click on the amount highlighted (or any other amount) to examine the underlying constituents. Many of the Dashboard Charts and Reports have similar Drill Down capability in order to facilitate exploration of data behind the Chart. You can transition from Group Company to individual subsidiary Company without having to Log out of the one and log into the other and vice versa. The complete Chief Financial Officer set of Dashboards and KPIs provides a list of useful KPI metrics across your group including Cash & Bank, AR, AP, Revenue & Expenses and Profitability. The General Ledger collection of dashboards displays, among many others, Profit, Revenue & Expenses trends by period at an overall level across the group. You can then view performance for each subsidiary in the group using the chart shown to drill down into the data. You can use the options available to filter by a single or multiple periods. In addition, there are tabular views of the Profit & Loss vs Budget and Balance Sheet available. The values in these tables are driven by filters facilitating selection by financial period and subsidiary.

7 The Sales & Purchases Analysis dashboard collections display overall sales and purchases movement trends by year and by period across the group. These are particularly useful to analyse sales or purchases across a group, where the same products/items/services are bought or sold across the group. In the case of multicurrency consolidations, the sales and purchases movement values are translated into the group reporting currency at the period average rate value maintained at group level. All of the foregoing Chart and Table datasets can also be readily exported to Excel. If you find that there are particular Metrics or Charts currently not available in our comprehensive standard set, then accountsiq, being the authors and developers of the system, will be happy to discuss your specific requirements with you. You can view the relative performance by quantity sold/ purchased by net value across all subsidiaries. Built in parameters enable you to view this data at different levels or dimensions including by Customer (Supplier), Customer Group (Supplier), Product, Product Group, Area, Region, and so on. Again, you can use the interactive filtering capability to select a particular period and then drill down to performance at subsidiary level. To view videos of the system please go to accountsiq.com

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