Question 1

Does Aleq do multi-entity consolidation?

Accepted Answer

Yes. Aleq is an AI accounting platform that acts as the consolidation system of record for multi-entity groups. Each entity keeps its own books in its own currency; Aleq translates them to your reporting currency under ASC 830 — closing rate for the balance sheet, average for the P&L, the difference to CTA in equity — matches and eliminates intercompany balances two-sided, revalues monetary balances at period end, and posts every step as a balanced, traceable journal entry. It runs alongside an incumbent ERP like NetSuite or QuickBooks while you cut entities over on your timeline. It is live in 48 hours.

Question 2

What is intercompany elimination?

Accepted Answer

Intercompany elimination is removing transactions between entities in the same corporate group so consolidated financial statements show only third-party activity. When a US parent bills its UK subsidiary for shared services, that's a receivable on one set of books and a payable on the other — real to each entity, but not to the group, so both sides come out in consolidation. Aleq matches the two sides of every intercompany balance, nets them to zero in the consolidation only, and leaves the standalone books exactly as each local team keeps them. Every elimination is a visible entry showing what came out and why.

Question 3

What is a cumulative translation adjustment (CTA)?

Accepted Answer

CTA is the equity account that absorbs the currency differences created when you translate a foreign subsidiary's books into your reporting currency. Because the balance sheet translates at the closing rate and the income statement at the period average, the translated statements don't tie on their own — the gap goes to CTA within accumulated other comprehensive income, per ASC 830, so rate movements don't distort earnings. In Aleq, CTA is never a plug: every translation posts as a balanced journal entry showing the source balance, the rate used, and the CTA line, traceable back to the local books.

Question 4

What exchange rate do you use to consolidate a foreign subsidiary?

Accepted Answer

Under ASC 830, balance-sheet accounts translate at the closing rate on the reporting date and income-statement accounts at the period-average rate, with the resulting difference recorded to cumulative translation adjustment in equity — not earnings. Separately, monetary balances denominated in another currency, like a USD intercompany loan sitting on a GBP book, are revalued at the period-end rate with the FX gain or loss posted where it belongs. Aleq applies all of this automatically and shows the rate behind every translated line, so nothing is converted on a number you can't see.

Question 5

How do companies automate financial consolidation?

Accepted Answer

Three common paths: move every entity onto one ERP like NetSuite or Sage Intacct and use its consolidation module; bolt a corporate performance tool on top of mixed systems; or keep rebuilding the Excel workbook every month. Aleq is a fourth: it becomes the consolidation system of record while entities stay on their own books. It learns each entity's chart mapping and each intercompany relationship, translates at visible rates, eliminates two-sided, and ties the group to the locals — even mid-migration, with some entities still on the old ERP. Relationships it has matched across many closes run alone; a new entity drafts and asks first.

Question 6

Can QuickBooks handle multi-entity consolidation?

Accepted Answer

Not natively. QuickBooks keeps a separate company file per entity and won't consolidate across them, so most multi-entity teams export a trial balance from each file into Excel every month, re-key foreign currencies, and build eliminations by hand — days of work that's only as good as a cell reference. Aleq solves this without forcing an ERP migration: it consolidates as the system of record while each entity's books stay where they are, translating currencies at visible rates and eliminating intercompany automatically. You bring entities over on your own timeline instead of jumping straight into a NetSuite implementation.

Question 7

Do I need NetSuite to consolidate multiple entities?

Accepted Answer

No. NetSuite consolidates well once every entity is inside NetSuite, but getting there is a long implementation and an all-or-nothing switch. Aleq runs group consolidation as the system of record while an incumbent ERP still holds some entities — that's the designed on-ramp, live in 48 hours, with entities cut over on your timeline. You get currency translation per ASC 830, two-sided intercompany elimination, and a consolidated close that ties to the local books without waiting for a migration to finish.

Question 8

Is AI-generated consolidation auditable?

Accepted Answer

In Aleq, nothing in the consolidation is a black box. Every translation and every elimination posts as a real, balanced journal entry that carries its source balance, the FX rate used, and the reason, so any consolidated number traces back to the local books per entity. Every entry is logged and reversible. The learned automation is inspectable too: TAMi — The Aleq Mind — keeps a visible belief for each intercompany relationship and chart mapping, shows how confident it is and how many closes it has matched cleanly, and lets you switch any belief off. Whether the result satisfies your audit is your auditor's determination; the trail is built for the examination.

Question 9

Why don't my intercompany balances match at consolidation?

Accepted Answer

Usually currency and timing: one entity books the invoice at this month's rate, the other settles at last month's, or one side posts in a different period — the US records $840,000 while the UK holds £661,000, and the difference is an FX artifact, not a real imbalance. Aleq prevents the hunt: it matches both sides of every intercompany balance at the origin rate, revalues monetary intercompany positions like USD loans on foreign books at the period-end rate, and posts the FX gain or loss where it belongs. Mismatches surface as they happen, not on day four of the close.

Question 10

What happens to consolidation when we acquire a new entity?

Accepted Answer

With Aleq, you map the acquired entity's chart of accounts to your consolidated chart and it starts translating and eliminating immediately. Because a fresh entity has no track record, Aleq drafts every consolidation step for your approval — the mappings, the eliminations, the translation entries — until it has matched enough clean closes to earn autonomy for that relationship. Established entities keep running alone the whole time, so an acquisition doesn't destabilize the group close. Each new relationship carries its own visible confidence level, and you can keep any of them in ask-first mode as long as you want.

Many books. One close.

Today, consolidation is a spreadsheet someone rebuilds every month.

Each entity, in its own currency.

Intercompany, eliminated.

Every relationship is a belief it earns.

What controllers ask first.

Consolidate your group with Aleq.