{"id":29020,"date":"2025-03-21T14:54:59","date_gmt":"2025-03-21T18:54:59","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=29020"},"modified":"2025-04-03T13:33:20","modified_gmt":"2025-04-03T17:33:20","slug":"consolidated-balance-sheet","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/consolidated-balance-sheet\/","title":{"rendered":"Consolidated balance sheet: What it is and how to create one"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tConsolidated balance sheet: What it is and how to create one\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-03-21T14:54:59-04:00\">March 21, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Consolidated balance sheet: What it is and how to create one\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/consolidated-balance-sheet\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Managing finances across multiple entities can feel like juggling too many numbers at once\u2014especially when you need to present a clear, unified financial picture.<\/p>\n\n\n\n<p>Whether you\u2019re preparing for an audit, securing investor confidence, or ensuring compliance, a consolidated balance sheet simplifies the chaos by merging the financial data of your company and its subsidiaries into one accurate, comprehensive report.<\/p>\n\n\n\n<p>If you\u2019re a financial controller or CFO, you know how important it is to eliminate discrepancies, avoid double counting, and meet compliance standards.<\/p>\n\n\n\n<p>This guide breaks down exactly what a consolidated balance sheet is, why it matters, and how to create one\u2014so you can streamline reporting, gain financial clarity, and make more informed decisions.<\/p>\n\n\n\n<p>By consolidating multiple financial statements into a single document, your business can streamline reporting and manage its consolidated financials more efficiently, saving time and reducing complexity.<\/p>\n\n\n\n<p>A well-prepared consolidated balance sheet provides clear financial visibility, making it easier to track assets, liabilities, and overall business performance at-a-glance.<\/p>\n\n\n\n<p><strong>Here&#8217;s what we&#8217;ll cover<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-a-consolidated-balance-sheet-nbsp\" data-level=\"2\">What is a consolidated balance sheet? &nbsp;<\/a><\/li><li><a href=\"#h-why-should-you-create-one\" data-level=\"2\">Why should you create one?<\/a><\/li><li><a href=\"#h-what-are-the-main-requirements\" data-level=\"2\">What are the main requirements?<\/a><\/li><li><a href=\"#h-what-are-the-key-components-of-consolidated-balance-sheet\" data-level=\"2\">What are the key components of consolidated balance sheet?<\/a><\/li><li><a href=\"#h-how-to-create-a-consolidated-balance-sheet\" data-level=\"2\">How to create a consolidated balance sheet<\/a><\/li><li><a href=\"#h-a-practical-example-of-a-consolidated-balance-sheet\" data-level=\"2\">A practical example of a consolidated balance sheet<\/a><\/li><li><a href=\"#h-simplify-your-financial-reporting\" data-level=\"2\">Simplify your financial reporting<\/a><\/li><li><a href=\"#h-faqs-about-consolidated-balance-sheets\" data-level=\"2\">FAQs about consolidated balance sheets<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The Secrets of Successful CFOs<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Unlock the strategies of high-impact finance leaders<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a21bd1f0-c706-4e66-a650-c490ba625e9b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/BrandShootLDN_Jul2022_TechSoftware_0015-Final-1440x810.jpeg\" class=\"single-cta__image\" alt=\"A woman working on her desktop computer in an office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/BrandShootLDN_Jul2022_TechSoftware_0015-Final-1440x810.jpeg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-consolidated-balance-sheet-nbsp\"><strong>What is a consolidated balance sheet?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>Before diving into the details, let\u2019s start with the basics.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Simply put, a consolidated balance sheet merges the assets, liabilities, and equity of a parent company and its subsidiaries into one financial statement. This approach provides a holistic view of your company\u2019s financial health<s>, e<\/s>. It eliminates intercompany transactions to avoid double counting and ensure accuracy.\u00a0<\/p>\n\n\n\n<p>By using a consolidated balance sheet, finance teams can:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Get an accurate financial snapshot<\/strong> of the entire corporate structure.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Streamline reporting<\/strong> by reducing redundancies.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improve decision-making<\/strong> with a clear overview of assets and liabilities.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-should-you-create-one\"><strong>Why should you create one?<\/strong><\/h2>\n\n\n\n<p>Creating a consolidated balance sheet isn\u2019t just a best practice\u2014it\u2019s often a necessity if you run a business with subsidiaries. Here\u2019s why it matters and the key benefits it provides:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><strong>Tax compliance and regulatory requirements<\/strong><\/h3>\n\n\n\n<p>Tax authorities require businesses with multiple entities to consolidate financial statements for accurate reporting. A consolidated balance sheet ensures your company\u2019s compliance, prevents double taxation, and makes audits and filings smoother. Additionally, it helps your business meet Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) requirements, reducing the risk of non-compliance penalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><strong>Mergers, acquisitions, and restructuring<\/strong><\/h3>\n\n\n\n<p>If your company undergoes structural changes, a merger, or acquisitions, a consolidated balance sheet provides a clear picture of all of the parts combined and their all-round financial health. It helps your stakeholders, including investors and lenders, assess risk, evaluate financial stability, and make well-informed decisions about strategic investments and restructuring efforts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><strong>Transparent financial reporting and improved decision-making<\/strong><\/h3>\n\n\n\n<p>Your investors, creditors, and regulators expect transparency. Effective consolidated financial reporting ensures that your business presents accurate and reliable financial data, reducing errors and enhancing credibility.<\/p>\n\n\n\n<p>A consolidated balance sheet ensures clarity, preventing misinterpretations of financial standing. With a single, unified financial statement, you can make smarter, data-driven decisions about resource allocation, budgeting, and overall business growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><strong>Operational efficiency and financial visibility<\/strong><\/h3>\n\n\n\n<p>By consolidating multiple financial statements into a single document, your business can streamline reporting and manage its consolidated financials more efficiently, saving time and reducing complexity. A well-prepared consolidated balance sheet provides clear financial visibility, making it easier to track assets, liabilities, and overall business performance at-a-glance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-main-requirements\">What are the main requirements?<\/h2>\n\n\n\n<p>When preparing your business\u2019s consolidated balance sheet, it\u2019s important to understand the specific requirements and guidelines that apply.<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/www.bdo.com\/getmedia\/8a458199-b9e0-4445-8b0e-f8f1bd7a180f\/Control-and-Consolidation-Under-ASC-10.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">ASC 10<\/a>, a reporting entity must consolidate with a legal entity when it has a controlling financial interest. <\/p>\n\n\n\n<p>Control is determined using one of the two main consolidation models:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-voting-model\">Voting model<\/h3>\n\n\n\n<p>Under the Voting model, a reporting entity is generally deemed to have a controlling financial interest if it directly or indirectly owns more than 50% of a corporation\u2019s outstanding voting shares.<\/p>\n\n\n\n<p>Similarly, in the case of limited partnerships, control is established if the entity owns more than 50% of the voting interests, including \u201ckick-out\u201d rights (the ability to remove the decision-makers).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-variable-interest-entity-vie-model\">Variable Interest Entity (VIE) model<\/h3>\n\n\n\n<p>The VIE model applies when control isn\u2019t determined solely by voting rights.<\/p>\n\n\n\n<p>Instead, it focuses on entities where a reporting entity has a significant financial interest or bears the majority of the risk and rewards.<\/p>\n\n\n\n<p>This model ensures that entities with influence or dependence, even without majority voting control, are consolidated appropriately.<\/p>\n\n\n\n<p>It\u2019s also important to be aware of exemptions from consolidation requirements, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Registered Money Market Funds and similar entities.<\/li>\n\n\n\n<li>Investment companies and brokers or dealers.<\/li>\n\n\n\n<li>Governmental organizations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-key-components-of-consolidated-balance-sheet\">What are the key components of consolidated balance sheet?<\/h2>\n\n\n\n<p>Think of a consolidated balance sheet as a traditional balance sheet, but on a bigger scale.<\/p>\n\n\n\n<p>Instead of showing your parent company\u2019s financial position, it combines the assets, liabilities, and shareholder\u2019s equity of your entire organization, including all subsidiaries.<\/p>\n\n\n\n<p>Wondering what makes up a consolidated balance sheet?<\/p>\n\n\n\n<p>Here\u2019s a quick rundown of the main sections:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-assets-nbsp\">Assets &nbsp;<\/h3>\n\n\n\n<p>This section captures everything your company owns, both tangible and intangible.<\/p>\n\n\n\n<p>In a consolidated balance sheet, assets from the parent company and its subsidiaries are combined into one total. Key categories include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash and cash equivalents<\/strong>: readily available funds, including cash on hand and short-term investments.<\/li>\n\n\n\n<li><strong>Marketable securities<\/strong>: liquid investments that can be quickly sold for cash.<\/li>\n\n\n\n<li><strong>Accounts receivable<\/strong>: money owed to the company for products or services provided.<\/li>\n\n\n\n<li><strong>Inventory<\/strong>: goods and materials the company holds for sale or production.<\/li>\n\n\n\n<li><strong>Long-term investments<\/strong>: investments intended to be held for more than a year, such as stocks or bonds.<\/li>\n\n\n\n<li><strong>Fixed assets<\/strong>: tangible items like property, plants, and equipment (PP&amp;E), minus depreciation.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-liabilities\">Liabilities<\/h3>\n\n\n\n<p>Liabilities represent what your company owes to others, such as loans or obligations to suppliers and employees.<\/p>\n\n\n\n<p>Common examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loans<\/strong>: borrowed funds that must be repaid.<\/li>\n\n\n\n<li><strong>Interest payable<\/strong>: interest owed on outstanding debts.<\/li>\n\n\n\n<li><strong>Wages payable<\/strong>: salaries owed to employees but not yet paid.<\/li>\n\n\n\n<li><strong>Customer prepayments<\/strong>: payments received for products or services not yet delivered.<\/li>\n\n\n\n<li><strong>Dividends payable<\/strong>: declared dividends that are yet to be paid to shareholders.<\/li>\n\n\n\n<li><strong>Accounts payable<\/strong>: bills owed to suppliers for goods or services received.<\/li>\n\n\n\n<li><strong>Deferred tax liabilities<\/strong>: taxes owed but not yet due, often resulting from timing differences in accounting methods.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-shareholder-equity\">Shareholder equity<\/h3>\n\n\n\n<p>This section represents the ownership interest in your company.<\/p>\n\n\n\n<p>Shareholder equity reflects the residual interest after liabilities are subtracted from assets and shows what your company owes to its shareholders.<\/p>\n\n\n\n<p>Key components include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Common stock<\/strong>: the value of shares issued to investors.<\/li>\n\n\n\n<li><strong>Retained earnings<\/strong>: profits that are reinvested in the business rather than distributed as dividends.<\/li>\n\n\n\n<li><strong>Additional paid-in capital<\/strong>: the amount shareholders paid above the nominal value of shares.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-create-a-consolidated-balance-sheet\">How to create a consolidated balance sheet<\/h2>\n\n\n\n<p>Creating a consolidated balance sheet takes a few key steps, but it\u2019s all about staying organized and paying attention to the details.<\/p>\n\n\n\n<p>Here are some important things to keep in mind as you go through the process:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-align-accounting-policies-and-reporting-periods\">1. Align accounting policies and reporting periods<\/h3>\n\n\n\n<p>Ensure all entities follow the same accounting standards\u2014like GAAP or IFRS\u2014and have consistent reporting periods.<\/p>\n\n\n\n<p>Under GAAP, all entities within a consolidated group must use consistent accounting policies unless doing so is impractical\u2014in which case, adjustments should be made during consolidation.<\/p>\n\n\n\n<p>Similarly, IFRS requires uniform accounting policies for transactions and events. <\/p>\n\n\n\n<p>Again, if there are discrepancies, adjustments should be made during consolidation to maintain uniformity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-identify-and-eliminate-intercompany-transactions\">2. Identify and eliminate intercompany transactions<\/h3>\n\n\n\n<p>Review financial records to remove transactions between the parent company and subsidiaries, including intercompany sales, purchases, dividends, loans, and expenses.<\/p>\n\n\n\n<p>This step is crucial for producing accurate consolidated financial statements for the balance sheet, to prevent double counting, and make an accurate representation of external transactions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-prepare-a-consolidation-worksheet\">3. Prepare a consolidation worksheet<\/h3>\n\n\n\n<p>Compile financial data from your parent company and all subsidiaries into a worksheet.<\/p>\n\n\n\n<p>This serves as a central hub for recording and adjusting financial information, ensuring proper organization before finalizing the consolidated statement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-adjust-for-minority-interests\">4. Adjust for minority interests<\/h3>\n\n\n\n<p>If your parent company owns less than 100% of a subsidiary, account for Non-Controlling Interest (NCI) in the consolidated financial statements.<\/p>\n\n\n\n<p>This ensures the correct proportion of ownership is reflected in the equity section.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-eliminate-duplicate-assets-and-liabilities\">5. Eliminate duplicate assets and liabilities<\/h3>\n\n\n\n<p>Remove intercompany balances, such as loans between subsidiaries and your parent company, to prevent inflation of assets and liabilities. <\/p>\n\n\n\n<p>This step ensures the consolidated balance sheet presents only obligations to external parties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-reconcile-and-finalize-the-consolidated-balance-sheet\">6. Reconcile and finalize the consolidated balance sheet<\/h3>\n\n\n\n<p>Once all adjustments are made, verify that total assets equal total liabilities and equity. <\/p>\n\n\n\n<p>Review the sheet for discrepancies and ensure compliance with reporting standards before finalizing it.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The Secrets of Successful CFOs<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Unlock the strategies of high-impact finance leaders<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a21bd1f0-c706-4e66-a650-c490ba625e9b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/BrandShootLDN_Jul2022_TechSoftware_0015-Final-1440x810.jpeg\" class=\"single-cta__image\" alt=\"A woman working on her desktop computer in an office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/BrandShootLDN_Jul2022_TechSoftware_0015-Final-1440x810.jpeg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-practical-example-of-a-consolidated-balance-sheet\">A practical example of a consolidated balance sheet<\/h2>\n\n\n\n<p>Creating a consolidated balance sheet might seem complex at first, but breaking it down into steps makes the process clearer.<\/p>\n\n\n\n<p>Here&#8217;s a real-world scenario to help you understand how everything comes together.<\/p>\n\n\n\n<p>Imagine ABC Corporation, a parent company that owns two subsidiaries: ABC Manufacturing and ABC Retail.<\/p>\n\n\n\n<p>Your goal is to create a single consolidated balance sheet that accurately reflects the financial position of all three entities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-identify-entities\">Step 1: Identify entities<\/h3>\n\n\n\n<p>Since ABC Corporation holds a controlling financial interest in both subsidiaries, their financial data must be included in the consolidation process.<\/p>\n\n\n\n<p>Be sure to verify ownership percentages and applicable consolidation rules before proceeding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-2-combine-the-balance-sheets\">Step 2: Combine the balance sheets<\/h3>\n\n\n\n<p>Next, gather the balance sheets for ABC Corporation, ABC Manufacturing, and ABC Retail and combine the assets, liabilities, and shareholder equity. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ABC Corporation assets: $2M<\/li>\n\n\n\n<li>Manufacturing assets: $1.5M<\/li>\n\n\n\n<li>Retail assets: $1M<\/li>\n\n\n\n<li><strong>Total combined assets: $4.5M<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Do the same for liabilities and equity to create an initial draft of the consolidated balance sheet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-eliminate-intercompany-transactions\">Step 3: Eliminate intercompany transactions<\/h3>\n\n\n\n<p>To ensure accuracy, eliminate any transactions between the entities.<\/p>\n\n\n\n<p>For example, if ABC Corporation loaned $500,000 to ABC Manufacturing, this amount appears as both an asset for the parent company and a liability for the subsidiary.<\/p>\n\n\n\n<p>Since it\u2019s an internal-only transaction, it must be removed to avoid double counting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-4-adjust-for-parent-company-investments\">Step 4: Adjust for parent company investments<\/h3>\n\n\n\n<p>Adjust the consolidated balance sheet to reflect the parent company\u2019s investment in its subsidiaries. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If ABC Corporation owns 100% of Manufacturing and 80% of Retail, record these investments appropriately.<\/li>\n\n\n\n<li>Factor in any goodwill or other adjustments that affect the final financial statements.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-5-account-for-non-controlling-interests\">Step 5: Account for non-controlling interests<\/h3>\n\n\n\n<p>Since ABC Corporation owns only 80% of ABC Retail, the remaining 20% belongs to minority shareholders.<\/p>\n\n\n\n<p>This portion must be reported as a non-controlling interest in the shareholders\u2019 equity section to ensure transparency and accuracy.<\/p>\n\n\n\n<p>Once these adjustments are made, the finalized consolidated balance sheet provides a complete and accurate financial snapshot of the corporate group.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Category<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td colspan=\"2\"><strong>Assets<\/strong><\/td><\/tr><tr><td>Cash and equivalents<\/td><td>$1,000,000<\/td><\/tr><tr><td>Inventory<\/td><td>$2,000,000<\/td><\/tr><tr><td>Fixed assets<\/td><td>$1,500,000<\/td><\/tr><tr><td><strong>Total assets<\/strong><\/td><td>$4,500,000<\/td><\/tr><tr><td colspan=\"2\"><strong>Liabilities<\/strong><\/td><\/tr><tr><td>Accounts payable<\/td><td>$500,000<\/td><\/tr><tr><td>Loans<\/td><td>$1,000,000<\/td><\/tr><tr><td><strong>Total liabilities<\/strong><\/td><td>$1,500,000<\/td><\/tr><tr><td colspan=\"2\"><strong>Shareholder equity<\/strong><\/td><\/tr><tr><td>Retained earnings<\/td><td>$2,400,000<\/td><\/tr><tr><td>Non-controlling interest<\/td><td>$600,000<\/td><\/tr><tr><td><strong>Total equity<\/strong><\/td><td>$3,000,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-simplify-your-financial-reporting\">Simplify your financial reporting<\/h2>\n\n\n\n<p>Manually managing a consolidated balance sheet can be time-consuming and prone to errors.<\/p>\n\n\n\n<p>Consolidation accounting software can automate your financial consolidation process, eliminating manual input errors, speeding up calculations, and reducing compliance risks.<\/p>\n\n\n\n<p>With the right <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/financial-reporting\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial reporting software<\/a>, you can generate accurate, audit-ready consolidated statements, ensuring compliance and improving decision-making.<\/p>\n\n\n\n<p><strong>Ready to simplify your financial reporting?<\/strong><\/p>\n\n\n\n<p>Discover how Sage <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/consolidation-accounting\">consolidation accounting software<\/a> can streamline your processes and provide clearer financial insights from complex data.<strong><br><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-about-consolidated-balance-sheets\">FAQs about consolidated balance sheets<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-difference-between-consolidated-and-unconsolidated-balance-sheets\">What is the difference between consolidated and unconsolidated balance sheets?<\/h3>\n\n\n\n<p>A consolidated balance sheet combines the financial information of your parent company and its subsidiaries into a single statement, providing a comprehensive view of your organization\u2019s financial status.<\/p>\n\n\n\n<p>In contrast, a non-consolidated balance sheet only reflects the financial position of an individual entity without including its subsidiaries.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-who-makes-a-consolidated-balance-sheet\">Who makes a consolidated balance sheet?<\/h3>\n\n\n\n<p>A consolidated balance sheet is typically prepared by the parent company\u2019s finance or accounting team.<\/p>\n\n\n\n<p>This process involves collaboration with subsidiaries to gather individual statements from all entities and create a single report.<\/p>\n\n\n\n<p>The process involves several key roles, including the CFO, financial controller, accountants and financial analysts, and internal and external auditors.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/boss-your-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBoss your business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash Flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cfo\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCFO\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/growing-a-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tGrowing a business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/staying-competitive\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tStay competitive\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-29310 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-technology-innovation tag-artificial-intelligence tag-automation tag-boss-your-business tag-cash-flow tag-cloud-financial-management tag-sage-accounting business_type-small-business business_type-growing-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T12:23:35-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/order-to-cash-process-otc-o2c\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat is the Order to Cash process?\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf you manage business finances or operations, the order to cash process shapes how quickly you invoice, collect payment, and convert revenue into working capital. Learn the key steps, KPIs, and how to improve your O2C cycle with automation.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-29062 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-boss-your-business tag-business-intelligence tag-growing-a-business tag-inventory-management tag-productivity tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-an-order-management-system-oms\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1417607997-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T10:25:03-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is an order management system?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-28210 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-strategy-legal-operations tag-boss-your-business tag-business-intelligence tag-business-strategy tag-distribution tag-growing-a-business tag-inventory-management tag-productivity tag-supply-chain-management business_type-small-business business_type-growing-business industry-distribution industry-wholesale-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-order-processing\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-841574854-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-841574854-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-841574854-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-841574854-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T11:22:21-04:00\">June 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tOrder processing explained: Steps, systems and best practices\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-28775 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-business-strategy tag-cash-flow tag-growing-a-business tag-small-business business_type-small-business business_type-growing-business industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/peer-to-peer-fundraising-best-practices\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T05:54:37-04:00\">June 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">15 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tPeer-to-peer fundraising guide: Best practices for success\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-29487 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-continuity tag-business-intelligence tag-cash-flow tag-sage-accounting tag-small-business tag-starting-a-business business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-vs-notes-payable\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-22T12:03:36-04:00\">May 22, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNotes payable vs accounts payable: Differences and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to create a consolidated balance sheet to unify your business\u2019s financials, enhance reporting accuracy, and gain a clear, comprehensive view of your corporation\u2019s financial health.<\/p>\n","protected":false},"author":1774,"featured_media":20123,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[44],"tags":[110,195,299,427,153,155],"business_type":[41],"lilypad":[],"context":[],"industry":[],"persona":[100],"imagine_tag":[209,468,436,444,233,484,462],"coauthors":[509],"class_list":["post-29020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","tag-accounting-101","tag-boss-your-business","tag-cash-flow","tag-cfo","tag-growing-a-business","tag-staying-competitive","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1338373163.jpg","imagine_tags":{"209":"Accounting","468":"Grow your business","436":"Intacct Accounting","444":"Intacct Medium Business","233":"Medium Businesses","484":"Multi Entity","462":"Payments"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice 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