Consolidation accounting entries refer to the process of combining financial information from parent and subsidiary companies on one set of reports. This involves taking the trial balance of each company, adjusting for intercompany transactions then consolidating them into a single report. By consolidating multiple accounts into one, businesses can better track their overall performance, identify potential inefficiencies and create a single view of their financial situation. Consolidation accounting entries are essential for providing an accurate and meaningful picture of the financial health of any organization.