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Larger corporations are accepting Xero accounting system with requirements to create group consolidated financial statements for multiple Xero companies including intercompany eliminations. This article dives deep into how you can completely automate the group Xero consolidation reporting process and add analytics options with Power BI or create dynamically updating reports in Excel.
While several web apps address this requirement, they are often rigid and cannot compete with analysis of market-leading analytics platforms. The approach we are covering here is based on an enterprise-grade data warehouse using Microsoft’s Azure SQL Server, which securely stores the data of all Xero consolidated accounts and has a Power BI option -the leading analytics platform- and Excel.
What is Xero Group Consolidation?
Xero Group Consolidation is a process that allows businesses to combine their financial data from multiple companies into a single, consolidated view. This can be helpful for businesses that operate multiple subsidiaries or for those that want to view their overall financial performance in one place. The Xero Group Consolidation tool can be used to combine data from different entities within the same company or from companies that are located in different countries.
Understanding Xero Multi Currency Consolidation
Multi currency consolidation is the process of consolidating financial statements of a company that has operations in more than one currency. The consolidated financial statement will show the financial position, performance and cash flows of the group as if it were a single entity, using a common currency. This is useful for investors and other stakeholders who need to assess the overall performance of the group, rather than just individual entities within it.
Advantages of Xero Group Consolidated Reporting
• Your data is securely backed up and readily accessible via various client tools such as Power BI, Excel, Tableau, Qlik, and custom solutions.
• Query responses are quick because the platform is optimized for group reporting and analytics.
• Thanks to its dynamic scalability, the platform can effortlessly adjust its cloud capacity to match your exact needs.
• Enjoy the flexibility of selecting your preferred data deployment jurisdiction while maintaining complete control.
Experience the power of Acterys, from automating data loading for numerous Xero companies into the Azure SQL data warehouse and availing seamless group consolidation are at your fingertips.
Looking to consolidate data from multiple companies in Xero? Check Acterys Xero Consolidated Template
Step Process: Realize Xero Consolidated Reporting in Acterys
The Consolidated Reports option in Xero allows you to generate reports for multiple companies at once. This can be helpful if you are responsible for overseeing finances for multiple businesses. To generate a consolidated report, follow these steps:
1. Sign up and start a free Acterys trial with our experts to guide you
2. Into a group, add one or more then one Xero companies or accounts for group consolidation
3. Install the Acterys Excel Template or Power BI App
4. Simplify account mapping tasks, such as linking individual accounts to a broader group chart of accounts.
a. Multi-Currency Mastery: Handle multi-currency conversion intricacies seamlessly. This involves automated integration of currency services or meticulous manual maintenance.
b. Smart FX Rate Management: Strategically determine which FX rates – whether spot or historical – are best suited for specific account types.
5. Fine-tune your inter-company elimination method according to your preferences.
The Acterys Xero group consolidated reporting tool stands alone as a solution offering five distinct, and often combined, methods. You can largely automate the process of eliminating transactions:
a. Utilize designated inter-company accounts.
b. Define inter-company contacts by setting a per-group-company flag for automated transaction elimination.
c. Leverage Xero Tracking Categories for smoother inter-company transactions.
d. Implement manual adjustments where needed.
7. Customizing your reports with the front end tool of choice (All versions of Power BI)
You can also use a Xero consolidation template in Excel for analysis and reporting, the same way as Power BI.
Easy Way to Consolidate Xero Companies & Analyze in Power BI
Lastly, the biggest benefit this approach has is offer group consolidation as just one of many solutions. You can seamlessly extend this with other business requirements from planning and budgeting to project management while also adding any data source.
This approach supports widely used authentication standards like Microsoft accounts and active directory and automatically integrates with Office Productivity solutions.
Finally, the option to easily extend Acterys with new no-code app development platforms like PowerApps and workflow automation like Microsoft Automate enable you to realize nearly any workflow requirement from approvals to email notifications.
Please feel free to contact us for any questions or start a trial for consolidating Xero companies and accounts.
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Key Takeaways
- Larger corporations using the Xero accounting system can automate the process of creating group consolidated financial statements for multiple Xero companies and streamline reporting and analytics, enhancing efficiency.
- Xero Group Consolidation allows the consolidation of financial statements in a common currency, providing a holistic view of the group’s financial performance.
- Benefits of using Acterys for Xero Group Consolidated Reporting include secure data backup, quick query responses, dynamic scalability, and flexibility in choosing data deployment jurisdiction.
FAQs
1. Why is Xero Group Consolidation important for businesses?
Xero Group Consolidation is a process that allows businesses to combine financial data from multiple companies into a single, consolidated view. It’s essential for organizations with multiple subsidiaries or those seeking a comprehensive overview of their financial performance in one place, making it easier to analyze and report on their overall financial health.
2. What are the advantages of Xero Group Consolidated Reporting with Acterys?
- Data Accessibility: Your data is securely backed up and accessible through various client tools such as Power BI, Excel, Tableau, Qlik, and custom solutions.
- Quick Query Responses: The platform is optimized for group reporting and analytics, ensuring fast query responses.
- Dynamic Scalability: The platform can easily adjust its cloud capacity to match your specific needs.
- Data Deployment Flexibility: You have the flexibility to choose your preferred data deployment jurisdiction while maintaining control.
3. What is the process for realizing Xero Consolidated Reporting with Acterys?
The process involves several steps, including signing up for an Acterys trial, adding Xero companies or accounts to a group for consolidation, installing Acterys Excel Templates or Power BI Apps, simplifying account mapping, handling multi-currency conversion, and fine-tuning inter-company elimination methods. Acterys offers various methods to automate these processes effectively.