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Consolidation of Subsidiaries in Accounting Software

Mr. John (Giancarlo) Meazzo, M.A. President of GMA noticed that at times clients are uncertain on how to set up consolidated companies in their accounting software.  Company consolidation lets you combine the charts of accounts (and general ledgers) of a number of existing companies to create a new consolidated chart of accounts. The new consolidated company created in this way will let you see consolidated financial statements for a number of subsidiary companies (different entities) operating under an umbrella organization.  Naturally a chart of account can be set up in a single company with various department (same legal entity e.g.one balance sheet).   It is important (and at times clients do not know) that different general ledgers be maintained for each of the subsidiaries.  GMA used various software such as Peachtree, MAS90, ACCPAT, BIP, Software International, and others.

 

For example, say your company is a food service organization that incorporates a restaurant, a food distribution service, and a catering service. You could combine the charts of accounts of these three sub-companies to create a new consolidated chart of accounts for the entire organization.

Consolidated companies you create act exactly like any other company in your general ledger. You can add to their charts of accounts, maintain customers, vendors, and employees, and report on company just as you would in any other company.

The result would be a company that contains the charts of accounts of the three subsidiary companies. Now you’d be able to track general ledger information, budget, and create financial statements and general ledger reports for all the subsidiary companies within your new consolidated company. This would greatly simplify and streamline your financial duties for the three subsidiary companies.  GMA is the guru in setting up accounting systems and converting from one software to another.

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