Consolidation Software
Published
October 22, 2026
Last updated
October 22, 2026
Definition
Consolidation software, also called financial consolidation software, is a specialized application that combines financial data from multiple entities into one set of consolidated financial statements. It pulls trial balances and intercompany balances from the ERPs and subledgers of each subsidiary, across currencies and ledgers.
The software then applies group-level adjustments that a general ledger doesn't handle on its own. These include intercompany eliminations, currency translation, ownership and minority interest calculations, account mapping, and manual adjustments. Teams configure it to follow consolidation standards such as IFRS 10 and ASC 810, and it keeps an audit trail of each adjustment. Without it, this work usually runs in spreadsheets.
Consolidation is one step in the financial close. For FP&A teams, consolidated actuals are the baseline for budgets, forecasts, and variance analysis. Some solutions run consolidation alongside planning, forecasting, and reporting on a single data foundation, so plans start from the same numbers the group reports.
Frequently Asked Questions
How is consolidation software different from an ERP or general ledger?
An ERP or general ledger records transactions for each entity, while consolidation software combines those entity-level results into group financial statements. It handles group-level tasks such as intercompany eliminations, currency translation, and minority interest calculations that would otherwise run in spreadsheets.
What does consolidation software automate?
It automates trial balance collection, account mapping, intercompany eliminations, currency translation, and ownership and minority interest calculations. It also logs adjustments in an audit trail, so auditors can trace consolidated figures back to source data.
How does consolidation software relate to the financial close?
Consolidation is one step in the financial close, after each entity closes its books and before the group publishes consolidated statements. Consolidation software replaces the manual spreadsheet work in that step with automated, controlled processes.
See Pigment in action
The fastest way to understand Pigment is to see it in action. Sign up today and explore how agentic AI can transform the way you plan.
From 8 days to 4 min
Update P&L actuals & financial forecasting
80%
Time cut on data aggregation
12 hours
Saved per month on executive reporting
6 days faster
For scenarios creation and analysis