Global accounting teams face growing pressure when it comes to the better handling of intercompany transactions. Many still rely on obsolete, disparate systems across multiple related companies and struggle to meet month-end deadlines and produce accurate consolidated financial statements.
1. Use an intercompany accounting framework to establish best practices
Coordinating intercompany transactions can be an administrative nightmare that impacts every facet of your business. There are several frameworks out there that can help your team better handle multi-company accounting. Frameworks can help you simplify your focus, allowing you to approach the problem from a more holistic perspective. Deloitte Risk Advisory’s framework for intercompany accounting is worth considering. You
2. Create global accounting policies for all your entities
Particularly during times of change or growth, it’s essential to review all policies around data governance, reporting and intercompany transactions. Sometimes these policies may be written at a high level and fail to communicate the line-level detail necessary to streamline workflows and ensure consistent reporting across all entities.
3. Invest in a centralized data management solution
Complications are inevitable if each entity uses different accounting software or tools. Not only is there more room for introducing errors, but your team will likely squander hours trying to investigate transactions and making adjustments at month-end. Not to mention the security risk when transferring data from one system to another. A centralized accounting system mitigates this risk and provides a single source of truth regarding intercompany transactions.