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 to support timely filing and internal control, too many still struggle with the time-intensive requirements of managing Intercompany Accounting and Reconciliation (IAR), which 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.