Consolidated Financial Statements

You’re a business owner and a serial entrepreneur. You own a holding company with subsidiaries that include a restaurant, a hair salon, a vitamin dispensary, and a place that sells exotic pets. If you want to know how your entire organization is doing financially...all four companies combined...you look at consolidated financial statements. These documents tell the financial health of the parent organization rather than forcing you to look at every single balance sheet one at a time.

You should look at all of the company’s balance sheets, but you’ve probably hired someone else to manage each location. And combined financial statements are much easier for investors, regulators, customers, and anyone else interested in your company to digest.