Many companies have significantly expanded their global footprints, building multinational value chains that generate an enormous volume of intercompany transactions. Operating in multiple countries introduces the need for compliance with country-specific regulations and tax policies. There is a growing level of regulatory scrutiny, and regulators are increasingly focusing their attention on the cross-border transactions of multinationals.
As if that weren’t enough, ICA has been further complicated by:
With substantial challenges to performing effective and efficient ICA, companies need a holistic and proactive approach in which the primary stakeholders work together to create a vision for the future that streamlines ICA, from governance to reporting.
Read our publication Putting intercompany accounting on the straight and narrow: Why ignoring the problem is increasing corporate risk to learn more about designing an effective approach to ICA.