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Consolidating Companies in QuickBooks

Lynn Koll's Profile

We are in the USA and acquired a canadian subsidiary. The canadian company is using Premier 2014 and we have access to their books via the Internet cloud. Our main US company is using the latest QB Enterprise and we need to maintain separate books for now but be able to consolidate the transactions and merge them for consolidated financial statements. Wondering about other companies that may have had similar situations and how the best way to keep separate but then consolidated transactions, and how to handle the Canadian exchange rate when merging with our US company. I have temporarily set up the canadian company as an additional company in the Enterprise version and am thinking I will need to set up an exact same Chart of Accounts in order to consolidate the numbers? And can I export data from the Premier version into teh Enterprise version? Am looking to confirm my process during this initial planning before beginning to enter data. Thank you!

Answers

Topic Expert
Simon Westbrook
Title: CFO
Company: Aargo Inc.
( CFO, Aargo Inc.) |

I have not used this version, but for reference, I have used a product called Simply Accounting" which performed both translations and consolidations of our US Company and Canadian subsidiary. This product is apparently more widely known in Canada than here. It has the feel and function of QuickBooks and worked for us. But, given the prevalence of QB among small companies in the US I will be interested in the other responses you receive to your question.

Topic Expert
Bob Stenz
Title: Controller
Company: Silicon Valley start-up
(Controller, Silicon Valley start-up) |

Repeating a previous posting from Proformative on 2/4/11 as shown below. QB Enterprise may have some niffy consolidation features by now, but I think the solution below is still valid and simple....

I've had great success (3 years of smooth audits) by just taking our US chart of accounts and adding two digits (followed by a hyphen) to each account (as needed) to represent each foreign sub (we have 4 foreign subs). I have our overseas accountants map their accounts to ours (with the 2 digit entity prefix) and prepare our monthly journal entry (include foreign currency translation). I then upload (using Dynamic Ventures General Journal Entry tool) each company's monthly journal entry into QuickBooks and do a quick review of the companies financials (...I have standard reports with a filter for each of the country's accounts). For the few elimination entries I have...I've created another entity with a two-digit prefix. We're a late stage startup as well using QB Enterprise 2009. The accounting staff (4 users) have found this approach to consolidation easy to work with (they never are confused by the extra accounts). Sure beats using multiple company files, etc.

See original posting at: https://www.proformative.com/questions/consolidating-foreign-entities-using-quickbooks

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