Here are some best practices to consider when performing consolidation in NetSuite:
- Standardize Chart of Accounts: Maintain a standardized chart of accounts across all subsidiaries to ensure consistency in financial reporting and facilitate the consolidation process.
- Intercompany Transactions: Implement proper procedures for recording and reconciling intercompany transactions to ensure accurate elimination during consolidation. Use NetSuite’s intercompany features to streamline and automate this process.
- Clear Closing and Reporting Procedures: Establish clear closing and reporting procedures for each subsidiary, including cutoff dates and timelines for submitting financial data. This ensures timely and accurate consolidation.
- Regular Reconciliations: Conduct regular reconciliations between subsidiary financials and the consolidated financials to identify and resolve any discrepancies or inconsistencies.
- Data Validation and Accuracy: Implement controls and validation processes to ensure data accuracy across subsidiaries. Regularly review and validate data to identify and address any errors or inconsistencies.
- Periodic Reviews: Conduct periodic reviews of consolidation settings, elimination rules, and consolidation reports to ensure they align with the organization’s changing needs and evolving business structure.
- Documentation and Auditing: Maintain proper documentation of consolidation processes, adjustments, and elimination entries. This documentation helps with internal auditing, compliance requirements, and future reference.
- Ongoing Training and Support: Provide ongoing training and support to users involved in the consolidation process to ensure they have the necessary skills and knowledge to perform their tasks effectively.
- Engage Professional Services or Experts: Consider engaging NetSuite professional services or working with experienced NetSuite consultants to optimize your consolidation processes and leverage best practices specific to your organization.
By following these best practices, you can enhance the accuracy, efficiency, and reliability of your consolidation processes in NetSuite.