Special situations
Franchise and multi-entity consolidation
For a group with entities in more than one EU member state, Finbryn keeps each entity's books on its own local GAAP or IFRS for SMEs schedule, then consolidates them into one profit and loss and balance sheet, eliminating intercompany charges and OSS-registered VAT flows between entities.
Bank reconciliation summary
Illustrative client · August 2026
EUR
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri, 28 Aug, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
One group, several sets of books
A group operating across the EU rarely gets to run one chart of accounts. An Ireland-registered holding company, a German operating subsidiary and a France-based sales entity each keep books to their own local GAAP or IFRS for SMEs, on their own statutory-accounts calendar, certified by their own credentialed local partner. Finbryn keeps a matching chart of accounts across entities where the underlying transactions allow it, and reconciles each entity on the same monthly schedule, without forcing a single national standard onto entities that are not required to use it.
Intercompany charges, management fees and transfers between entities get tracked and eliminated on consolidation, and where entities trade with each other's end customers under an OSS registration, the VAT flow between them is reconciled separately from the elimination itself so the consolidated view does not double-count a sale one entity made on another's behalf. The result is one consolidated profit and loss and balance sheet sitting alongside each entity's own reports, with per-entity comparisons so an underperforming country surfaces early rather than getting absorbed into a group-wide average.
Because consolidation pulls data from every entity into one file, the same data-protection safeguards that cover a single entity's bookkeeping cover the group file too, entity by entity, not as one blanket exception.
Each entity's own statutory accounts filing still goes through its own credentialed local partner, an expert-comptable in France, a Steuerberater in Germany, or the equivalent elsewhere in the EU; Finbryn's consolidated view sits above those filings, it does not replace any of them.
Questions
Frequently asked questions: Franchise and multi-entity consolidation
Can each entity keep its own local GAAP or IFRS for SMEs books?
Yes. Each entity reports on its own standard and its own statutory-accounts calendar; consolidation happens on top of that, not instead of it.
How do you handle VAT between our own entities under one OSS registration?
We reconcile the OSS-registered VAT flow between entities separately from the intercompany elimination, so a sale is not counted twice in the group view.
Does consolidation replace each entity's own statutory filing?
No. Each entity's credentialed local partner still certifies and files that entity's own statutory accounts; our consolidated report sits alongside those filings.
Is group-wide data still covered by the same GDPR safeguards?
Yes. The same safeguards set out in our privacy policy apply entity by entity within the consolidated file.
Can each franchise location keep its own bank account and books?
Yes, each location's books stay separate for local visibility, and consolidation happens as a reporting layer on top, without forcing every location onto one shared account it does not otherwise need. We confirm the exact structure with you before the consolidation layer is built.
Can each franchise unit keep its own file?
Yes. Each unit keeps its own books, and we roll them up into a consolidated set on your reporting schedule.
How do you handle royalty payments to the franchisor?
Royalties are tracked as an intercompany or standard expense line depending on your structure, and reconciled each period against the franchisor's statements.
How do we get started with franchise and multi-entity consolidation?
Getting started with franchise and multi-entity consolidation begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
What if our records for franchise and multi-entity consolidation are not up to date?
If your records are behind, we scope a catch-up first so franchise and multi-entity consolidation starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
Related services
- BookkeepingIntercompany accountingBookkeeping across two or more related entities, with intercompany loans, charges and transfers tracked and eliminated so consolidated reports are not overstated.
- Close & reportingConsolidationsMultiple entities, locations or subsidiaries combined into one consolidated set of financials, with intercompany balances eliminated while each entity still reports on its own.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.