Two companies became one. Now the accounting has to reflect that.
The months following a completed acquisition are when integration accounting either holds together or reveals the gaps. Fundara works alongside your finance team during that period — consolidating records, aligning policies, and building the reporting structure your combined entity needs.
Post-merger integration is rarely a single moment. It is three to six months of detailed accounting work — chart of accounts decisions, policy harmonization, intercompany eliminations, and combined statement preparation — happening while business continues and your team is already stretched. Fundara's role is to carry the technical accounting burden so your people can focus on running the business.
← Back to Home Discuss Your IntegrationA combined entity that reports accurately — from the first period after closing through a fully integrated structure.
When Fundara completes a Post-Merger Integration Accounting engagement, your finance team has unified financial records, a reconciled and aligned chart of accounts, harmonized accounting policies, and combined financial statements that reflect the merged entity as it actually operates.
The reporting procedures are documented and your staff has been walked through the new structure — so when the engagement concludes, your team is equipped to maintain the system independently.
Consolidated Financial Records
Records from both entities brought together into a single, coherent financial structure that supports accurate reporting.
Unified Chart of Accounts
A single, rationalized account structure that covers the combined entity without unnecessary redundancy or gaps.
Harmonized Accounting Policies
Revenue recognition, depreciation, inventory, and other key policies aligned across the combined entity so comparable periods are actually comparable.
Combined Financial Statements
Consolidated income statement, balance sheet, and cash flow statement reflecting the merged entity — prepared and documented.
Two sets of books. Two charts of accounts. Two ways of recognizing revenue. One reporting deadline.
The integration period is the point where the accounting complexity of an acquisition becomes most visible. The acquirer's finance team is managing two sets of financial records, often with different accounting systems, different policies, and different levels of documentation quality. The expectation from management, lenders, and boards is that combined reporting will be accurate and timely — almost immediately.
Most finance teams are not staffed for that work on top of their existing responsibilities. The result, without external support, is either delayed reporting, inaccurate combined statements, or a prolonged integration period that creates problems downstream — for budgeting, for lender reporting, and for the next period's audit.
Integration accounting challenges that arise frequently:
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The acquired entity's chart of accounts contains hundreds of accounts that don't map cleanly to the acquirer's structure.
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Revenue recognition policies differ between the two entities in ways that make combined historical comparisons misleading without adjustment.
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Intercompany transactions between the acquirer and the newly acquired entity need to be identified and eliminated in consolidated statements.
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The first combined financial statements are due before the finance team has finished reconciling the closing-date balances.
Methodical integration work — sequenced so your reporting timeline holds.
Fundara approaches integration accounting as a structured engagement with defined phases, not an open-ended advisory relationship. Each phase builds on the last, so the combined entity's reporting structure emerges in the right order.
Closing Balance Reconciliation
We begin from the closing-date balances of both entities, reconcile them against the purchase price allocation, and establish the opening position of the combined entity on a consistent basis.
Chart of Accounts Alignment
A unified chart of accounts is developed for the combined entity — mapping the acquired entity's accounts to the acquirer's structure, rationalizing redundancies, and filling gaps in the coverage.
Accounting Policy Harmonization
Differences in revenue recognition, depreciation methodology, inventory valuation, and other key policies are identified and resolved — with the selected approach documented for the combined entity going forward.
Intercompany Elimination
Transactions between the acquirer and the acquired entity are identified and appropriately eliminated in the consolidation, ensuring that combined statements reflect only third-party activity.
Combined Statement Preparation
Income statement, balance sheet, and cash flow statement for the combined entity are prepared for each period during the engagement — formatted to your reporting requirements and backed by supporting workpapers.
Reporting Procedures & Staff Training
The unified reporting procedures are documented and your finance staff is walked through the new structure — so the engagement concludes with your team prepared to maintain the system independently.
Working alongside your finance team — not replacing it.
Post-merger integration accounting works best when Fundara and your finance team operate as a unit. Your team holds the institutional knowledge of the business — how transactions are structured, where the accounting complexity tends to concentrate, what the board and lenders need to see. We bring the technical accounting framework and the bandwidth to execute it.
The engagement typically spans three to six months from the closing date, with the intensity of the work highest in the first two months when reconciliation and alignment work is most demanding. By the final month, the structure is largely in place and we are focused on documentation and handoff.
We provide regular progress updates — not just a summary at the end. If something requires a decision from your team, you hear about it when it matters, not after the fact.
Month One — Foundation
Closing balance reconciliation, chart of accounts mapping, and initial policy gap analysis. First combined statements drafted by end of month.
Month Two — Alignment
Policy harmonization decisions finalized, intercompany eliminations established, and chart of accounts implemented in your accounting system.
Months Three to Six — Integration
Ongoing combined statement preparation, refinement of reporting procedures, and staff training as the structure matures.
Handoff
Documented reporting procedures, trained staff, and a fully integrated accounting structure — ready for your team to operate independently.
A defined engagement for a defined period of work.
The starting investment for a Post-Merger Integration Accounting engagement is $5,000 USD. That covers the full scope of the engagement as agreed at the outset — closing balance reconciliation, chart of accounts alignment, policy harmonization, intercompany elimination, combined statement preparation, and the final documentation and training.
Engagements involving multiple acquired entities, significant policy differences requiring complex restatement, or systems migration support may be scoped at a higher investment. The conversation about scope and investment happens before the engagement begins — not once the work is underway.
The engagement is structured for a three to six month duration. Engagements that conclude earlier because integration proceeds smoothly are not extended unnecessarily. If the scope changes materially — because an additional entity is added to the transaction, for instance — that is a separate conversation.
Post-Merger Integration Accounting
$5,000 USDWhat's included
- Closing balance reconciliation and combined entity opening position
- Chart of accounts mapping and unified account structure development
- Accounting policy gap analysis and harmonization decisions
- Intercompany transaction identification and elimination procedures
- Combined financial statement preparation for the engagement period
- Unified reporting procedure documentation
- Staff training on the integrated reporting structure
- Engagement spanning three to six months post-closing
Engagements are typically structured with milestone-based payment arrangements aligned to the phases of the integration work. Payment terms are discussed and confirmed in the engagement agreement.
Integration accounting measured by what it produces — a combined entity that reports accurately and on time.
How progress is tracked
Integration accounting engagements have defined milestones — reconciliation completion, chart of accounts sign-off, policy decisions finalized, first combined statements delivered. Each milestone is tracked against the timeline established at the start of the engagement.
Your team receives a status update at each milestone — not a general assurance that things are on track, but a specific account of what has been completed, what decisions are outstanding, and what the next phase involves.
What a concluded engagement looks like
Finance teams who complete a Post-Merger Integration Accounting engagement with Fundara come away with a working accounting structure — not a set of recommendations about what to build. The chart of accounts is implemented. The policies are documented. The staff knows how to operate the new reporting process.
The combined financial statements from the engagement period are audit-ready — supported by the workpapers and reconciliation documentation that auditors will request when they review the first full year under the combined structure.
Standards and frameworks applied
US GAAP / IFRS
Consolidation accounting under applicable framework
ASC 810
Consolidation — variable interest entities and subsidiaries
Elimination
Intercompany transaction identification and elimination procedures
Documentation
Audit-trail workpapers supporting every line in the combined statements
The engagement ends when the integration is complete — with your team in a position to manage the structure without continued external support.
That is the measure we hold ourselves to. Not a report describing what an integrated accounting structure should look like, but an actual integrated accounting structure — implemented, documented, and handed off to a team that understands how to operate it.
The scope of the engagement is defined in writing before work begins. If circumstances change materially during the engagement — for example, if an additional entity is brought into the scope of the transaction — we raise that conversation explicitly, rather than absorbing the additional work without acknowledgment or billing without notice.
The initial conversation about your integration accounting situation carries no commitment. It is a working discussion about what the integration involves and how Fundara might support it.
Talk Through Your IntegrationThe path from first conversation to a working integrated accounting structure.
Send a Message
Describe your transaction — closing date, entities involved, and where things stand with your accounting systems and team.
Scoping Conversation
We discuss the entities, the existing accounting infrastructure, reporting requirements, and timeline — and map out what the integration engagement should cover.
Engagement Agreement
Scope, timeline, milestones, and investment are confirmed in writing. Work begins once the agreement is in place and access to records is established.
Integration Begins
Reconciliation, alignment, and combined reporting work proceeds according to the agreed milestones — with regular progress updates for your team throughout.
Transaction recently closed or integration just beginning?
Reach out and describe where things stand. We will let you know how an integration accounting engagement fits your situation — directly and without pressure.
Contact Fundara About Integration AccountingFundara services cover the full transaction lifecycle.
Transaction Due Diligence
A thorough financial examination of the target — earnings quality, working capital trends, and non-recurring items — before you commit to the acquisition.
Purchase Price Allocation
Post-closing allocation of acquisition consideration to acquired assets, liabilities, and goodwill — with journal entries, schedules, and opening balance sheet.