How We Helped a Client Automate their Accounting Consolidation Process
One large accountancy that we work with has a client consisting of 3 separate entities.
One is the owner or “parent company.”
The other two companies are linked via loans to each other for tax purposes.
Each month the accountant would have to spend 5-10 hours exporting the each of the respective company’s reports from QuickBooks Pro, combining them in excel, and then calculating eliminations and totals.
When we began our engagement the main goal was to be able to create a simple set of monthly statements that populate automatically and can be sent to the client’s bank and investors.
For the banks who have lent money to the companies, the consolidated format of the Income Statement and Balance Sheet are a necessity and can not be accepted in any other format.
For the investors, looking at individual statements don’t show the health of the company as a whole. They are interested in how the parent company is doing, but want an in depth breakdown of each organization separately.
We built the accounts, set up the data connection to Quickbooks Enterprise, built the statements as dashboards, and set the eliminations to calculate themselves.
In a few days, we were able to turn around the statements and eliminate this recurring monthly task from the accountant’s agenda.
Next, we used the data to create custom visualizations such as income source breakdowns as well as breakdowns for both accounts payable and accounts receivable accounts.
This accountant freed up 10 hours per month of her time, minimized the risk of human error, implemented a scalable solution, and put her firm in a position to act as a trusted advisor rather than a data-entry assistant.
That’s not all, the holding company client is now using Malartu for budget analysis and, as the organization grows, our platform grows with it.
Talk to us about implementing this with your advisory
At Malartu, we have automated consolidations for $250k/yr family owned stores to $20mm/yr corporate subsidiaries.
When you are ready to get some time back and provide your clients with the future of accounting tools, we are ready to help.
