> For the complete documentation index, see [llms.txt](https://smartbooks.gitbook.io/smartbooks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartbooks.gitbook.io/smartbooks-docs/consolidation/create-a-consolidated-company/subsidiary-financial-account-structures.md).

# Subsidiary Financial Account Structures

To ensure that consolidating in Smartbooks proceeds smoothly, verify that the following conditions are met in the subsidiaries:

1. **Consistent Subfolder Structure:**
   * Ensure that subsidiaries use a similar subfolder structure with consistent codes.
   * For example, personnel costs should always be marked with code "40" so that the system can automatically aggregate the underlying GL accounts under the correct subfolder.
2. **Uniform Hierarchical Levels:**
   * On each level of the consolidation (i.e., within a subfolder), ensure that you have only subfolders or only GL accounts present, not a mix of both.
3. **Unique GL Account Codes:**
   * Verify that the general ledger accounts have unique codes. This prevents accounts from being mixed during aggregation.
4. **Separate Intercompany (IC) Accounts:**
   * Keep IC accounts separate to enable easy elimination during consolidation.
   * Note: This separation is not necessary for Exact Online or Exact Globe entities (refer to the reclassifications under transactions for more details).

While it's not necessary to fully satisfy all the conditions (except for ensuring unique GL account codes, as mentioned in point 4), meeting most of these guidelines will simplify the consolidation process. You can always drag and drop accounts and add new subfolders within the consolidated financial accounts. However, ensuring that most of the conditions are met will make setting up the consolidation much easier and help avoid future issues.