--- title: "How to Consolidate Trial Balances From Several Entities" description: "Line the entities up on the same date and accounts, find the intercompany balances, eliminate them in their own column and check the combined result." url: "https://mcc-solutionsnj.com/bookkeeping/guides/how-to-consolidate-trial-balances-from-several-entities" --- Bookkeeping guide · Updated October 30, 2026 # How to Consolidate Trial Balances From Several Entities When one owner holds several companies, the combined picture is not a simple sum. Money one company lends another appears on both books, and adding them double counts it. Consolidation is the step that puts the entities side by side, removes the overlap and gives a reviewer one set of numbers they can trust. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** Put each company's trial balance side by side on the same date and the same accounts, find the balances the companies owe each other, and remove them in their own elimination column. Adding the books together without that step counts intercompany money twice. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) · [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) · [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) **Free tools:** [Credit card fee calculator](/bookkeeping/credit-card-fee-calculator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## Start with the same date and the same accounts Every entity must report as of the same date. A trial balance from the end of September cannot be combined with one from the end of October. Pull each entity's trial balance on the same cut-off after its books are reconciled. Then compare the charts of accounts. If one company calls an account 'Sales' and another 'Revenue', decide on a single name and map each entity's accounts to it. A mapping table, written once and reused every period, saves hours. ## Put the entities side by side Lay out one row per mapped account and one column per entity, with the trial balance amounts as they stand. Keep debits as positive and credits as negative, or the reverse, but use one convention throughout. Add a total column that is simply the sum across. At this stage the total is not the answer. It is the starting point, before anything is adjusted or removed. Check that every entity's column adds to zero before you go on, because a trial balance that does not balance means the problem is in that entity's books. ## Find the intercompany balances Look for accounts that exist only because the companies deal with each other: loans between them, management fees, shared expenses paid by one on behalf of another, sales from one to another. Each has a matching entry on the other side. Company A's receivable from B should equal B's payable to A. If they do not agree, find out why before eliminating anything. Common causes are timing, an item booked by one side only, or a different amount recorded. Fix the books of the entity that is wrong rather than forcing the elimination to balance. ## Apply eliminations and adjustments in their own columns Do not overwrite the entity numbers. Add separate columns for adjustments and eliminations, so a reviewer can see what was changed and why. An elimination removes the matching pair, such as the receivable and the payable. An adjustment fixes something that belongs only to the combined view, such as an accrual the entities did not book. Label every entry with a short reason. Months later, a note that says 'eliminate management fee, Co A to Co B' is worth far more than a number with no explanation. ## Check the result before you hand it over The combined column should still balance to zero. The intercompany accounts should be zero or explained. Compare the combined income to the sum of the entities less the eliminated sales and costs, and confirm the difference matches what you eliminated. A workbook that recalculates, so that changing an entity's number flows through to the combined result, makes this check quick. The Excel Consolidation and Markup Script on this site produces that kind of workbook, but the logic above applies whatever tool you use. ## When to ask a professional Consolidation for outside reporting, loans or audits can bring specific rules, especially where ownership is partial or the entities are not wholly owned. Ask your CPA how those apply to your situation. This guide describes the mechanics, not what your reports must contain. ## Common questions **Do I need consolidation if I only own two small companies?** Only if you or a lender want a single combined picture. For tax, each entity usually files separately, so ask your accountant what you need. **What if the intercompany balances do not agree?** Find the cause first, such as timing or a one-sided entry, and correct the books that are wrong. Do not force the elimination. **Can I do this in Excel?** Yes. A sheet with one column per entity, plus separate columns for adjustments and eliminations, is enough for a small group. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online) More guides - [What is a QuickBooks ProAdvisor?](/bookkeeping/guides/what-is-a-quickbooks-proadvisor) - [Bookkeeper vs. accountant vs. CPA: who do you need?](/bookkeeping/guides/bookkeeper-vs-accountant-vs-cpa) - [How to set up bookkeeping for a new New Jersey LLC](/bookkeeping/guides/how-to-set-up-bookkeeping-for-a-new-nj-llc) - [How to catch up when your books are months behind](/bookkeeping/guides/how-to-catch-up-on-behind-books) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [Excel Consolidation and Markup Script](/toolkits/excel-consolidation-script) - [Year-end bookkeeping checklist](/bookkeeping/guides/year-end-bookkeeping-checklist-for-small-business) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). 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It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)