Description: Intercompany Accounting – the recording and reconciliation of accounts payable and accounts receivable activities that take place between separate legal entities of the same company – is often ripe for simplification and improvement. Puzzling, since unlike trade accounts payable or trade accounts receivable transactions, all the parties involved are ultimately employees of the same company. At many companies, Intercompany Accounting can utilize significant resources, as well as extend closing cycles and delay account reconciliations. Efficiency in managing Intercompany Accounting can eliminate a great deal of non-value-added activities.
Background: At many companies, Intercompany Accounting (ICA) can utilize a significant amount of resources, as well as extend closing cycles and delay account reconciliations. Efficiency in managing Intercompany Accounting can eliminate a great deal of non-value added activities. This poll looks at levels of automation and quality in ICA processing today and when companies last make improvements to this process.
Process is highly automated and streamlined with high quality results and little rework | 0% | |
Process is highly automated but we spend more time than we would like doing investigation or rework | 18% | |
We are working to find ways to increase automation and improve quality | 77% | |
We would benefit from increased automation and improved quality but we haven’t been able to give this a high priority | 5% |
Within the past year | 32% | |
1-3 years ago | 5% | |
4-6 years ago | 32% | |
7-10 years ago | 0% | |
More than 10 years ago | 0% | |
Not sure, but have plans to do so in the near future | 23% | |
Not sure, but currently no plans to do so | 9% |