Intercompany Accounting / Reconciliation (IAR) refers to the processing and accounting for internal financial activities and events that impact multiple legal entities within a Group. IAR can include sales of products and services, cost allocations and royalties, etc.
With mounting pressure on companies to achieve a more efficient financial close in order to support timely filing and internal control, too many still struggle with the time-intensive requirements of managing Intercompany Accounting and Reconciliation (IAR) that is often inefficient due to processes and systems. Just as with closing, it is often a great challenge and a lot of work to balance intercompany accounts on a monthly basis. We have seen companies defer the balancing and reconciliation effort to quarterly, as it was not deemed achievable within a month.
We can help you address the common challenges of IAR, including:
- Intercompany Governance and Policies
- Transaction Creation and Management
- Netting and Settlement Process Automation
- Intercompany Reconciliation and Reporting
Transformious can help your organization unlock this potential through the implementation of Intercompany best practices. We can design an approach that is fully integrated and cross functional that assigns ownership and accountability, and that is based on well-delineated processes. It’s a blend of people, processes and technology.