Read our case study to find out how AES International uses AccountsIQ to automate multi-currency consolidation.ĪES International is a UK financial advisory company with a branch in Dubai. It can quickly become a bit of a nightmare. Using Excel for multi-currency consolidation is also highly error prone, as there’s very little in the way of checks and balances to ensure compliance back to all your original consolidation entities. If you’re using spreadsheets to consolidate all this, they’re probably bursting at the seams. Subsidiaries with a base currency that differs from that of the holding company.Multiple bank accounts in different currencies.Single entities trading in multiple currencies.For example, within your group structure, you may also have: But other multi-currency consolidation complexities can arise. In simple terms, multi-currency consolidation is combining the financials of your international entities (with different reporting currencies) into a single entity (with one reporting currency). Multi-currency consolidation can be quite complex However, it can take you into the more complex accounting world of multi-currency consolidation. This could be for compliance reasons or just to be closer to your customers. There are many benefits of setting up locally based subsidiaries, rather than simply selling cross-border.
At some stage in your growth journey, you might even consider setting up an overseas entity. As a growing business, it’s likely you already need to transact, account and report in multiple currencies. Multi-currency consolidations are essential for group companies with subsidiaries, franchises, holding entities, or other structures in more than one country.
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