For subsidiaries of international groups, financial reporting plays a crucial role in communication with headquarters. It not only allows for the transmission of precise financial information but also ensures that local performance aligns with the group’s global expectations. This often involves adhering to international accounting standards and meeting tight deadlines for fast closing. Navigating this process can be complex, but Hexagone Advisory is here to assist and simplify your tasks.
Reporting to headquarters: A challenge of accuracy and speed
In subsidiaries of international groups, regular and accurate financial reporting to headquarters is essential. Often performed via fast closing, this process involves quickly transmitting financial data after the end of an accounting period (monthly, quarterly, annually). This enables headquarters to have up-to-date data to monitor overall performance and make informed decisions.
Compliance with international standards (IFRS and US GAAP)
Financial reporting for international groups generally needs to comply with international accounting standards, such as IFRS (International Financial Reporting Standards) or US GAAP (Generally Accepted Accounting Principles). These standards ensure comparability and transparency of financial information across different countries and entities within the group.
However, while local accounting in France must follow the General Accounting Plan (Plan Comptable Général – PCG), adjustments are required to align with international standards for reporting to headquarters. Differences between the PCG and IFRS or US GAAP standards can be subtle yet significant. Harmonizing this data is crucial to ensure headquarters receives financial reports that meet their expectations.
Fast closing: Speed and precision
Fast closing is imperative for large international groups, meaning subsidiaries must provide their financial reports shortly after the end of an accounting period. Successful fast closing requires efficient accounting processes and competent teams capable of quickly collecting and processing financial data while ensuring its accuracy.
Hexagone Advisory can assist in setting up an efficient reporting process. We ensure your reports are delivered within the set deadlines while adhering to the quality and accuracy standards required by your headquarters. We work with you to optimize internal procedures and shorten closing times without compromising the quality of financial information.
Consolidation of accounts: Integrating financial data at group level
In multinational groups, account consolidation is a critical process involving integrating financial statements from all subsidiaries to produce comprehensive global financial statements reflecting the overall financial position and performance of the group.
Consolidation: Why is it so important?
Consolidation provides shareholders, investors, and other stakeholders with a complete and accurate view of the group’s financial health. To achieve this, individual subsidiary accounts, including those from your French subsidiary, must be converted and consolidated to produce financial statements compliant with IFRS or US GAAP standards.
How can Hexagone Advisory help?
Hexagone Advisory has deep expertise in account consolidation. We help integrate your local accounting data into the group’s global financial statements. Our team ensures that the transmitted data aligns with group expectations, facilitating seamless consolidation of your French subsidiary’s accounts.
With our support, you can be confident that your accounts are integrated flawlessly into global financial statements, avoiding errors or delays. This ensures your headquarters has reliable, up-to-date data to inform strategic decisions.
Hexagone Advisory: Your partner for seamless reporting and consolidation
Financial reporting and account consolidation are complex yet essential tasks to ensure transparency and consistency of information within international groups. As a French subsidiary, it’s vital to meet both local standards and international requirements to maintain effective communication with headquarters.
With Hexagone Advisory, you receive tailored support to:
- Ensure rapid and precise reporting.
- Guarantee your financial reports comply with IFRS or US GAAP standards.
- Smoothly integrate your local accounts into the group’s consolidated financial statements in line with headquarters’ requirements.
Our goal is to provide customized solutions to simplify these complex processes, ensuring all your accounting and financial obligations are met, both locally and internationally.
By entrusting your financial reporting and account consolidation to Hexagone Advisory, you ensure your subsidiary consistently aligns with headquarters’ expectations and that strategic decision-making data is timely and reliable. This allows you to focus on developing your business, knowing your accounting is in expert hands.
