How finance managers can overcome the challenges of group accounting

Group accounting can be one of the most technically demanding and time-consuming areas for finance teams—especially as businesses expand across entities, currencies, and geographies. If you're relying on disconnected systems and manual processes, the complexity increases fast.

While consolidation may feel manageable with two or three subsidiaries, scaling that process across a fast-growing national or multinational group often becomes unworkable without the right tools in place.

This article highlights some of the key challenges in group accounting and explores how modern financial management software—designed specifically for group structures—can help overcome them.

What is group accounting?

Group companies must track the financial performance of each individual entity. But standalone accounts won’t provide the full picture you need at group level.

As the Association of Corporate Treasurers (ACT) puts it:

“Group accounts combine all the information from subsidiaries under the parent’s control. They reflect the underlying commercial reality of group control, making it easier to compare performance across entities, even where ownership structures vary. Importantly, the accounting group is not a legal entity in its own right.”

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The main challenges faced by group finance teams

1. Outdated, manual processes

Many finance teams are still managing group accounts in spreadsheets—collating and reconciling data from different systems and subsidiaries. These manual processes are not only time-consuming but also prone to error. Most entry-level accounting platforms simply aren’t built for group consolidation.

2. Risk of errors and loss of control

To minimise the risk of accidental errors, access to group spreadsheets is often tightly restricted. But this limits collaboration and transparency. Finance teams struggle to share timely insights with department heads or business leaders—undermining the finance function’s strategic impact.

3. Inconsistent or inaccurate data

Group accounts built on spreadsheets often involve hidden formulas, manual FX rate updates, and inconsistent reporting structures. Multi-currency trading, minority interests, and nested ownership structures further increase the risk of errors and inconsistencies.

4. Complex intercompany processes

Group finance involves multiple layers of complexity, including cost allocations, recharges, and intercompany reconciliations. When done manually, these tasks consume significant time and often require multiple reworks before month-end close.

5. Lack of clarity and visibility

Senior leadership needs clear, timely reporting—but manual consolidation often causes delays. Even when reports are available, they may lack the depth or consistency needed to compare entity performance and identify actionable insights across the group.

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How to overcome these challenges

Modern cloud accounting platforms like AccountsIQ are purpose-built to address the complexities of group finance. With real-time access to consolidated and subsidiary-level data, you can reduce reliance on spreadsheets, simplify your workflows, and deliver more meaningful insight across your group.

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The benefits of using group accounting software

Simplifying group accounting processes

• Automate data consolidation to accelerate month-end and eliminate manual errors
  
  
• Seamlessly manage complex structures, including minority interests and nested ownership
  
  
• Consolidate across multiple currencies with automatic FX conversions based on centralised rates
  
  
• Streamline intercompany recharging and reconciliation
  
  
• Post top-level adjustments without impacting local subsidiary data
  
  

Delivering better financial data and reporting

• Access real-time, drill-down financial data across your entire group
  
  
• Create dynamic, multi-dimensional reports that engage both finance and non-finance stakeholders
  
  
• Empower leadership with fast, evidence-based insights to drive better decisions
  
  
• Integrate with your wider tech stack (e.g., Salesforce, Concur, BrightPay, AutoEntry) for end-to-end visibility
  
  

A platform your whole team can use

• Cloud-native and accessible 24/7—no matter where your team is working from
  
  
• Intuitive interface designed for both finance professionals and occasional users
  
  
• Improve team engagement and reduce stress by replacing error-prone spreadsheets with structured workflows
  
  

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Find out more about group accounting with AccountsIQ

AccountsIQ’s cloud-based financial management platform is built for growing businesses with complex group structures. We help you reduce complexity, save time, and unlock powerful insights through real-time, multi-entity reporting.

Whether you manage three subsidiaries or thirty, our platform enables you to consolidate with confidence and scale with ease.

Talk to our team to see how we can support your group finance goals.
Request a demo to explore the platform in action

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