How to do consolidated statements?In fact, it is not difficult to do it well

In the basic work of accounting, the most difficult thing should be the consolidated financial statements. The main reason is that it involves too many merger offset entries, which is complicated and easy to confuse people. Don't talk about you, I've been the general ledger for so many years, and I'm confused when I look at this part again.

So is there any good way to learn how to consolidate statements?Come with me and take a look.

For the sake of understanding, I will not talk about the knowledge points of the textbook. Let's take a vivid example, let's say there is a family of three: father, mother, and children (unmarried and single), all of whom are working, each of them has their own funds, and from time to time they will buy a small household appliance or furniture for the family.

Maybe behind closed doors, the servants themselves will work at home: this TV was bought by my father, the computer was bought by my mother, and the mechanical keyboard and headphones were bought by my children, etc. But when an outsider came to his house, when he saw the TV and the computer, he didn't care who bought it, he just said, "Yo!".Your TV is so big, and the computer is so advanced!"I don't ask who bought the TV or computer at home. Because in his opinion, a family of three is a whole, and no matter who buys something, it belongs to this family.

In the same way, in a family of three, no matter who lends money to another person (even if the father, mother, and children borrow from each other, triangular debt) does not matter to outsiders, anyway, they do not borrow money. But if the family of three borrows money from this person, they will definitely find the main money of the party or the family.

Now you see dad as the parent company, mom as the constituent company, and the child as the subsidiary. Guests and outsiders are units that have no related party transactions with the Family of Three Group. From the perspective of a unit without related party transactions, the family of three group is a whole, and your internal affairs are all going around in a cauldron anyway, and nothing runs out or goes inside. It is only when they have business dealings with them that they will pay attention to the business itself.

It is really difficult to consolidate the offsetting entries, so let's first understand why we should do the offset.

Let's take a family of three as an example.

To outsiders, a family of three is the whole, but if it is not offset, the income and cash flow of this family can be very high just by relying on the non-stop transactions between the three parents, mothers and children. Assuming that under normal circumstances, a family of three earns 10,000 yuan a month, but internal transactions can make this figure become 100,000 or 200,000, is this not unreasonable in the eyes of outsiders?

The same is true for returning to reality, if there is no merger offset, then the company's financial data can be very good, and the company's management does not have to do anything to do a few more internal transactions with the subsidiary, so as to achieve the company's performance and complete the performance target and get the task reward. If you are a shareholder or boss of the company, are you angry?

In fact, there is really no need to worry too much about the process of consolidating reports.

First, more formal companies now have mature financial systems, and the whole group shares one set. Consolidated reports can be followed step by step according to the operating instructions, and some systems can also automatically generate consolidated reports.

Second, if you still need to manually do only consolidated statements (such as us), then there are basically mature consolidated offset papers, most of the offset entries have already been written, and you only need to fill in some changes.

Of course, what I said above is just for you to get started temporarily, and you still need to have an understanding of merging offset entries. After all, the system can go wrong, and subsidiaries may be added or decreased in the future. At that point, you will have to maintain the changed consolidated offset entries!

I'm going to send you a list of our offsets, and you can follow one. (If you want a manuscript, send me a private message, I can delete the data and share it with you.) ）

I am an accountant who can plan and do **, and I am also a father who accompanies my children to grow up. If you are willing to grow with your child and achieve each other. Then let me accompany your children through spring, summer, autumn and winter, and taste the ups and downs.