Farm and other small business credit analysis becomes increasingly difficult when the business owner(s) has organized into multiple entities. Commonly, multiple entities are created for tax and/or liability reasons. To aid in credit analysis for operations of this type, FINPACK allows users to quickly consolidate the balance sheets or tax forms from several different data files into a single file. By consolidating these financial statements, the lender can quickly garner the most complete, global financial picture of their borrower.
It is a best practice to consolidate Detailed Balance Sheets or Tax Forms from the different entities into a new data file and indicate this is a consolidated FINPACK file. Create a Detailed Balance Sheet or Tax Form of the same date as that of the other entities in the new consolidated file. Once created, the FINPACK user can select Edit + Consolidate to bring each entity’s Detailed Balance Sheet or Tax Form into the consolidated FINPACK file. For more detailed information on the consolidating process see the FINPACK Knowledge Base.