Combine several entities into one consolidated trial balance. If you prepare returns for a parent company and its subsidiaries, you can define the group once and merge the members' trial balances into the parent's binder, with intercompany eliminations applied.
As of the August 2026 release there are two consolidation types. You choose one per group.
The two consolidation types
Tax Consolidation — the original type. Members are 1120 corporations, each with an ownership percentage, for a consolidated corporate return.
Financial Consolidation — new. Members may be any entity type or return type, combined at 100% (fully owned) into the parent's binder. Use this when your firm owns a group of mixed-type entities outright — for example a C-corp parent with an LLC and a partnership beneath it — and you want one combined trial balance across the group rather than a consolidated corporate return.
Which one do I want?
Choose Tax Consolidation if every member is an 1120 corporation and you need a consolidated corporate return, or if members are owned at less than 100%.
Choose Financial Consolidation if the members are not all 1120s, or the parent's binder is on a form other than 1120, and every member is 100%-owned.
The type is locked once the group is created. Switching it would invalidate the members you already added against the other type's eligibility rule, so create a new group instead if you picked the wrong one.
How to turn it on
Consolidation is a self-enable feature. Open the What's New panel and enable TB Consolidation (Tax & Financial) under the Self-Enable section. One switch covers both types — there is no separate setting for Financial consolidation.
A Consolidation Groups button then appears in the right-hand menu on the Clients page and in the binder inspector panel.
Prerequisite: The parent and every member must already exist as separate clients in Tallyfor.
Setting up a consolidation group
On the Clients page, click Consolidation Groups in the right-hand menu (or go to Settings → Consolidation).
Click New Consolidation Group.
Enter a group name and choose the Type — Tax or Financial. Both sit on the same row.
Add the parent entity, then add the member entities.
For a Tax group, members must be 1120 corporations and you enter each one's ownership percentage.
For a Financial group, members can be any entity type and ownership is fixed at 100% — there is nothing to enter.
(Optional) Nest this group under a parent group. Groups can be nested up to about three levels.
Save the group. A badge on the group shows its type — Tax or Financial 100%.
Note on the member picker: the client dropdown now lists the same clients you see on the Clients page. If a client is visible there, it is selectable for consolidation.
Running consolidation
Open the parent entity's binder.
Click Consolidation Groups in the right inspector panel.
Select the consolidation group.
Click Consolidate to merge the member trial balances into the parent's TB.
Review the consolidated trial balance on the parent's TB screen.
What the consolidated trial balance contains
This is the same for both types:
Member accounts are prefixed by entity, so you can always see which entity a balance came from.
Accounts are combined by the five universal sections — Revenue, Expenses, Assets, Liabilities, Equity.
Intercompany eliminations are applied across the group.
The consolidated binder follows the parent's form.
In a Financial consolidation there is no cross-form tax-line remapping: each member's accounts keep their own form's tax categories and the combine happens at the section level. The result is a combined trial balance with eliminations — it is not a filing-ready single-form consolidated return.
Managing groups
From the Consolidation Groups panel you can search by group or entity name, edit member names, edit ownership percentages on Tax groups, and delete groups. The panel shows a spinner while groups load.
Not supported yet
Partial ownership and minority interest in a Financial consolidation — Financial groups are 100%-owned only. Use a Tax group if you need ownership percentages.
A filing-ready single-form consolidated return from mixed entity types — Financial consolidation combines trial balances, it does not remap tax lines across forms.
GAAP consolidated financial statements.
Related features
Consolidation merges multiple entities. To manage multiple properties within a single client, use Multi-Property. To manage K-1 ownership relationships, use Ownership Linking.