Consolidation when companies run different finance systems
One company runs Fortnox, another Visma and the latest acquisition something else entirely. Here is how to put the group together every month without any company switching systems.
Most groups never chose to run different finance systems. It just happened. An acquired company came with its own system, a subsidiary in Finland keeps its books in whatever its accounting firm uses, and the parent company still runs the system it always has.
The group is then often put together by hand. Each company exports a report, someone maps the accounts, reconciles the intercompany invoices and adds it all up in a spreadsheet. This guide covers how to consolidate a group with different finance systems, step by step, and why you rarely need to switch systems to get it in order.
Switch systems or consolidate on top?
The first thing many consider is moving every company to the same finance system. That can be right in the long run, but it is a big project: every company has to be migrated, the accounting firm may work in a different system and the history rarely comes along.
The other way is to let each company keep its books where it does today and consolidate on top. Each system is then read directly and the accounts are mapped to a shared group chart of accounts. The next acquisition is connected with its existing system from the completion date.
An example
| System | Currency | What is needed | |
|---|---|---|---|
| Parent company | Fortnox | SEK | Intercompany loans and invoices with the subsidiaries |
| Subsidiary 1 | Visma | SEK | Its own chart of accounts, mapped to the group's |
| Subsidiary 2 | Business Central | SEK | Cost centres that should carry through |
| Acquired company in Finland | Another system | EUR | Translation, goodwill and minority from completion |
Step by step
- Connect each company's system directly. Exports are out of date the day they are taken. When consolidation reads the books directly, the latest month is included as soon as the company has booked it.
- Decide on a group chart of accounts and map the accounts. Each company's accounts point to a group account. Accounts without a group account should show up straight away, not be discovered after the report has gone to the board.
- Eliminate intercompany items. Intercompany invoices, loans and dividends are removed, so the group only shows what concerns the outside world. That requires the intercompany counterparts to be recognisable in each company's books.
- Translate foreign companies. Profit and loss and balance sheet are translated to the group currency before anything is added up, and the translation difference is collected separately in equity.
- Include acquisitions by date. Capital elimination, goodwill with amortisation and the minority share are calculated from the ownership shares from the completion date and carried through every month.
- Check and lock. After every run you should be able to see that the balance sheet balances, that every account is mapped and that intercompany items net to zero. When the month is done, it is locked.
Questions to ask before choosing a setup
- Which finance systems do the companies run today, and which could come with the next acquisition?
- How often do management and the board want to see group figures, every month or at year-end?
- Who prepares the group annual report, you or your accounting firm?
- Should budget, forecast and liquidity be followed at group level, in the same chart of accounts?
- How do you show that the group figures are right when the auditor or the bank asks?
How it works in Fintower
Fintower connects each company's finance system, such as Fortnox, Visma, Hogia or Business Central, and maps the accounts to a shared group chart of accounts. You do not switch finance systems and no migration is needed. The group is recalculated automatically every night, with eliminations, acquisitions, minority interest and currency translation at the Riksbank's rates, and prepared under K3 chapter 19.
After every run the balance sheet and account mapping are checked, and closed months are locked. You can drill from group figures down to company, account and voucher, and budget, forecast and liquidity sit in the same platform. We set up the group structure, chart of accounts and reports as part of onboarding.