What is an Elimination Entry on Carta?
Consolidated reporting for multi-entity structures has historically been a manual and error prone process. Traditional accounting platforms require the fund admin team to manually tag journal entries for elimination when producing a single financial statement for the group of entities. At Carta, we’ve automated this process. Our system now detects intercompany transactions between linked parent-subsidiary fund structures and automatically performs elimination entries in real time. This ensures that internal transfers are removed from consolidated reports the moment they are recorded, without manual intervention.
For Auditors, how does this impact you: We’ve added a dedicated "Elimination Entries" tab to the workpapers. This view provides a detailed log of every transaction automatically eliminated by Carta, allowing you to efficiently verify that intercompany activity is excluded from the final report to prevent double-counting. You can view the financial statements prior to elimination on the individual fund level.
An example elimination entry will look like this on the financials: Original Journal Entry at Parent Fund: Investment in Child Fund
Original Journal Entry at Child Fund: Contribution from Parent Fund
Elimination of Contribution from Parent Fund
Elimination of Investment in Child Fund