Financial Consolidation Overview

GoldFinch Financial Consolidation helps organizations combine financial results from multiple companies or General Ledgers within Salesforce.

Organizations can maintain separate books for individual entities while preparing consolidated financial statements for the overall organization. The consolidation process can incorporate currency conversion, intercompany activity, elimination entries, and consolidated reporting based on the organization’s structure and accounting policies.

Key Capabilities

Consolidate Multiple Companies

Combine financial information from multiple companies or ledgers into a designated consolidation ledger.

This allows organizations to:

• Maintain separate accounting records for each company
• Review entity-level financial statements
• Combine results for management or external reporting
• Preserve traceability to the contributing ledgers
• Compare company-level and consolidated results

Currency Conversion

Companies operating in different base currencies can convert financial information into a common reporting currency for consolidation.

The conversion process uses configured exchange rates and accounting rules to produce converted financial activity for the appropriate reporting period.

Depending on the organization’s requirements, different exchange-rate treatments may be used for balance-sheet accounts, income-statement accounts, or other financial activity.

Intercompany Transactions

GoldFinch can support recording and reviewing transactions between related companies.

Intercompany processes help organizations:

• Identify activity between related entities
• Maintain corresponding receivable and payable balances
• Review intercompany differences
• Prepare elimination entries
• Prevent internal activity from overstating consolidated results

The required workflow depends on the organization’s legal structure and accounting policies.

Elimination Entries

Organizations can prepare elimination entries to remove intercompany balances and transactions from consolidated financial statements.

Examples may include:

• Intercompany receivables and payables
• Intercompany revenue and expenses
• Internal transfers
• Other balances between consolidated entities

Elimination activity can be maintained separately from each company’s operational books.

Consolidation Periods

Consolidation can be organized by reporting period to help control and document the closing process.

Authorized users can review the status of company-level activity, currency conversion, intercompany reconciliation, elimination entries, and consolidated results before completing a reporting period.

Consolidated Financial Reporting

After consolidation activity is complete, authorized users can prepare financial statements for the consolidated organization.

Reports may include:

• Consolidated Balance Sheet
• Consolidated Income Statement
• Consolidated Cash Flow Statement
• Consolidated Trial Balance
• Company-level comparative reports
• Reports by configured financial dimension

Available reports depend on the organization’s GoldFinch configuration.

Ledger Structure

GoldFinch may use different ledger types to organize the consolidation process:

• Actual Ledger: Maintains the company’s operational accounting activity.
• Converted Ledger: Maintains financial activity converted into the consolidation currency.
• Elimination Ledger: Maintains entries used to eliminate intercompany activity.
• Consolidation Ledger: Combines applicable financial activity for consolidated reporting.

This structure helps preserve the original company records while keeping conversion, elimination, and consolidation activity separately identifiable.

Traceability and Financial Control

GoldFinch Financial Consolidation helps authorized users trace consolidated results through the applicable consolidation, elimination, converted, and company ledgers.

This structure can help organizations:

• Review how consolidated balances were calculated
• Identify the companies contributing to reported amounts
• Investigate currency-conversion differences
• Review intercompany elimination activity
• Maintain a clear financial audit trail
• Support management review and external audits

Built on Salesforce

Because GoldFinch Financial Consolidation operates within Salesforce, authorized users can use connected records, reports, dashboards, permissions, approvals, and supporting documentation throughout the consolidation process.

The organization's configured Salesforce security and GoldFinch permissions govern access to company, ledger, and consolidated financial information.

Related Capabilities

Explore other GoldFinch Accounting capabilities:

• Multi-Company Accounting
• Multi-Ledger Accounting
• Multi-Currency Accounting
• Intercompany Accounting
• General Ledger
• Financial Reporting
• Financial Closing

Detailed consolidation setup, currency-conversion procedures, intercompany processing, elimination procedures, and period-end closing instructions are available to signed-in GoldFinch customers and approved partners.