Intercompany transactions have far-reaching repercussions for companies’ profits and risk
Intercompany accounting is integral to the assignment of the profits of domestic and global enterprises. It has a significant bearing on the effective tax rate of the group, as well. Intercompany accounts therefore must be calculated accurately, accounted for and settled in a timely manner, then tagged properly so intercompany liabilities and profits can be eliminated when results are consolidated. For success, accounting executives must:
- Ensure there is proper governance of the intercompany process from end to end.
- Maximize process efficiency and effectiveness by adopting best practices.
- Encourage high levels of automation and centralized management of the process.
- Be on the lookout for emerging practices that will reduce intercompany volume and disputes.
Download this whitepaper published by The Hackett Group to discover how to optimize your intercompany accounting process
