How to Prepare Consolidated Financial Statements

by Contributing Writer - Updated September 26, 2017
Prepare Consolidated Financial Statements

A consolidated financial statement combines all financial information of a parent company with its subsidiaries. It shows the financial results of the parent company and its subsidiaries as if the group were a single company with multiple branches. In fact, it is commonly used by single companies that have multiple branches or divisions that operate under their own financial statements.

Open a new spreadsheet and save it with an appropriate name. The first line should be the title, including the parent company name. Add a line below to show the beginning and ending dates you’ve selected. Leave a blank line and proceed to the next step.

Enter all category descriptions in column A. This should include income, expenses and all of the formulas for calculating totals, margins and percentages. Make sure that you refer to all of your individual financial statements so that you don’t miss any categories or formulas.

Enter the name of your first branch, division or subsidiary in column B. Below that, fill in the numbers from the individual financial statement that correspond to the categories in column A.

Enter the name of your next branch, division or subsidiary in column C. Below that, fill in the numbers from the individual financial statement that correspond to the categories in column A. Continue adding each branch, division or subsidiary in the next column until you’re done.

Enter the word “Totals” in the top of the column to the right of the last branch, division or subsidiary that you entered. Below that, create formulas to sum all columns containing data for each branch, division or subsidiary.

Tips

  • When using computer spreadsheet software, remember to save your work often. This will prevent you from having to start over should you experience technical difficulties. You can display only the consolidated figures by hiding the columns that contain the branch, division or subsidiary data. See Additional Resources below for links to more tips and help on business development, planning and analysis.

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