Improving the Intercompany Accounting Process

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.

Peercast Poll Results

Poll Title: Simplifying the Intercompany Accounting Function Through Automation and Process Design

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.

Poll Question: How would you characterize the Intercompany Accounting process at your company today?


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  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 19%
  We are working to find ways to increase automation and improve quality 76%
  We would benefit from increased automation and improved quality but we haven’t been able to give this a high priority 5%

Poll Question: When was the last time you made a significant improvement to automation and quality to the ICA process at your company?


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  Within the past year 33%
  1-3 years ago 5%
  4-6 years ago 29%
  7-10 years ago 0%
  More than 10 years ago 0%
  Not sure, but have plans to do so in the near future 24%
  Not sure, but currently no plans to do so 10%