Consolidated reporting in 10 minutes: Expert tips from Tyler Caskey

Consolidated reporting is often seen as one of the most challenging tasks for finance teams. It has a reputation for being tricky, time-consuming and, let’s be honest, a bit of a headache. Whether it’s managing multiple entities, inter-company transactions, or partial ownership structures, the process can quickly become overwhelming and can throw up some nightmare issues .

In Fathom’s seventh edition of the Expert Series , we spoke with Tyler Caskey, partner at TheBeanCounters, who shared how to simplify and automate consolidated reporting using Fathom. By using the right tools and strategies, Tyler walks through how anyone can complete consolidations in just 10 minutes—eliminating hours of manual work and reducing the risk of errors.

Tyler’s method focuses on four key steps ‘Simplify, Eradicate, Automate, and Delegate’ to make the process faster, easier, and more efficient. In this article, we’ll break down each of these steps and explore how Tyler’s approach, combined with Fathom’s powerful features, can reshape the way you handle consolidations.

Let’s dive into the step-by-step process and discover how you can simplify your consolidated reporting, save time, and deliver more insightful financial reports.

Step 1: Simplify your chart of accounts

Tyler’s number one hack? Keep things simple. He suggests reducing the complexity in your chart of accounts, especially when dealing with internal transactions between entities. The simpler the structure, the easier it is to manage and avoid unnecessary adjustments.

"The fewer complexities in your structure, the less you need to reconcile."

Tip: Set up separate general ledger codes for internal sales and costs of goods sold (COGS) between entities. This way, Fathom can automatically eliminate these entries with one click, saving you from having to do it manually.

Step 2: Eradicate unnecessary tasks

Next, Tyler emphasises the importance of eradicating tasks that don’t add significant value. He recommends avoiding small, immaterial journal entries; like those for minor amounts, and focusing on what really matters for your consolidated reports.

"If I’ve got a phone bill for $90 between two entities, I just don’t care. Focus on what’s materially important."

Tip: Remove tasks that don’t impact your overall results. Instead of over-adjusting for minor expenses, focus on material figures that will drive meaningful insights.

Step 3: Automate and utilise real-time insights

One of the key advantages of using Fathom is its ability to automate data pulling and updating in real-time. Tyler explains how connecting Xero files to Fathom takes under a minute, providing you with up-to-date, accurate financial data whenever you need it. With the ability to access the most current numbers at the click of a button, you can produce consolidated reports without worrying about whether the data is stale or incomplete.

Tip: Fathom updates daily to cloud accounting apps like Xero and QBO, but you can manually refresh your data anytime. This ensures your reports reflect the most recent transactions and decisions, giving you peace of mind that you’re working with the latest information.

Tyler also highlights how Fathom’s customisable report templates allow you to build reports tailored to the unique needs of your business. Instead of starting from scratch each time, you can create and reuse templates that fit your reporting style. Whether it’s board packs or monthly performance reviews, these templates save time and ensure your reports are consistent and professional.

"I really love that I can create a consolidated P&L and balance sheet on a page. The professionalism compared to what I used to do in Excel is mind-blowing."

Tip: You can group or reorganise account categories directly in Fathom to simplify your Profit & Loss (P&L) and balance sheet reports. This customisation enables you to focus on the  metrics that matter most, making it easier to deliver clear and actionable insights to stakeholders.

Use Mayday for Inter-Entity Loans

Keeping track of inter-company loans can be a hassle. Tyler recommends using Mayday, a tool that checks if your inter-company loans are in balance. It integrates with Xero and flags any discrepancies, so you can address them immediately.

Tip: Regularly check your inter-entity loans balances throughout the month, to prevent last-minute surprises at the end of the reporting period.

Step 4: Delegate the process

One of the key benefits of automation is that it makes delegating tasks much easier. By simplifying your chart of accounts and automating most of the work, you can empower your team to take on consolidations with confidence.

"Once the systems are in place, you can easily hand over the consolidation process to junior team members while maintaining accuracy."

Tip: Once your system is automated, hand over routine tasks to your team. This allows you to focus on higher-level analysis and decision-making.

Avoiding common pitfalls

Consolidations can go sideways when things get overly complicated. Tyler offers some helpful advice on how to avoid common traps:

• Too much detail: Aim to keep P&L reports to one page, grouping related items (like people costs or manufacturing expenses) for better clarity.
• Late inter-company checks: Don’t leave inter-entity balance checks to the last minute. By checking regularly, you’ll avoid potential stress when deadlines loom.
• Overcomplicating reports: Use Fathom’s templates for clean, easy-to-read reports that are perfect for board meetings or presentations.

Tyler also emphasises that simplifying your processes and using the right tools can make a huge difference. He is a huge advocate for the Xero app store and recommends using it to find the best solutions for improving workflows, which is how he landed on Fathom.

He found that compared to other tools, Fathom offers a more intuitive user experience, quicker consolidation times, and seamlessly integrates with Xero and QBO . These features help him stay focused on what really matters—analysing the data and making strategic decisions, rather than getting bogged down by manual tasks.

By adopting Tyler’s method and the right tools, you’ll no longer dread the consolidation process. In fact, you’ll be able to complete it in under 10 minutes. Pretty exciting, right?

Want to improve your consolidated reporting process?

Start your 14 day free trial today.