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Xero Group Consolidation: Multi-Account Reporting in Power BI, Excel

The Xero accounting system is getting widely accepted in larger organizations with requirements to create group consolidated financial statements for multiple Xero companies including intercompany eliminations. In this article, I would like to explain 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.

There are a variety of web apps out there to address this requirement, but these typically are rigid and cannot compete with the analysis functionality in market-leading analytics platforms. The approach that we are covering here is based on an enterprise-grade data warehouse using Microsoft’s Azure SQL Server where all Xero consolidated accounts data is stored securely in the cloud as well as an option for Power BI -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

• You have a full backup of your data in a format that can be accessed by nearly every client tool from Power BI, Excel, Tableau, Qlik to custom-built solutions
• The platform is optimized for group reporting and analytics requirements and enables the fastest possible query times
• The platform is nearly infinitely scalable as the cloud capacity can be instantly adapted to the needed capacity
• You have the option to choose in what jurisdiction your data is deployed and have full control over it

Acterys enables you to automate the load for any number of Xero companies to the Azure SQL data warehouse and provide you with all requirements necessary for group consolidation.

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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:

xero-consolidation-sign-up

1. Sign up and start a free Acterys trial with an expert at your side

adding Xero company for consolidation

2. Add one or many Xero companies or accounts for  group consolidation into a group

Acterys Power BI Apps QuickBooks Xero WorkflowMax

3. Install the Acterys Power BI App or the Acterys Excel Template

Account Mapping Xero Power BI

4. Maintain account mappings e.g. map single accounts to a group chart of accounts

a. Details of multi-currency conversion: automated integration of currency services or manual maintenance
b. What FX rates (spot, historic) to use for what account types

6. Configuring your preferred method for inter-company elimination.

Acterys Xero group consolidated reporting tool is the only solution that enables you to use 5 different methods -that can be used in combination- and in most cases completely automate the process of eliminating transactions:
a. By specifying dedicated inter-company accounts
b. Specifying inter-company contacts (setting a flag per group company that will automatically eliminate transactions between them)
c. Using Xero Tracking Categories for inter-company transactions
d. Manual adjustments as required

Inter-Company Elimination For Xero
7. Customizing your reports with the front end tool of choice (All versions of Power BI)

In addition, it also allows you to use a Xero consolidation template in Excel for reporting and analysis just as you can using Power BI.

Easy Way to Consolidate Xero Companies & Analyze in Power BI

One of the biggest benefits of this approach is that group consolidation is just one of many aspects that the solution covers. It can be easily extended with other business requirements from planning and budgeting to project management and the addition of nearly any data source.

The shown approach natively supports widely used authentication standards like Microsoft accounts and active directory and instantly 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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