Intercompany accounting leading practices for transformation
Taming the wild beast: Emerging tech for intercompany accounting
A blog post by Beth Kaplan
From globalization and regulatory scrutiny to widespread tax reform, many factors are affecting how companies need to address intercompany accounting today.
Intercompany accounting includes recording and reporting of internal financial activities, sales of products and services, cost allocations, and financing activities, to name a few. It consists of inventory transactions such as the supply of raw materials, finished goods, and direct shipments from a distribution center and noninventory transactions such as research and development charges, shared service transaction charges, and royalty payments.
Previously, we discussed some challenges facing intercompany accounting, as well as the journey organizations could take to streamline the intercompany accounting process. At the end of that journey, new technology implementation and program integration is the final step on the intercompany optimization process. The ongoing identification of business requirements and technology enhancements that address changing environments may help organizations find the right technology solutions for intercompany accounting leading practices.
Streamline and optimize the intercompany accounting process with technology
There is an opportunity for professionals to take advantage of the three most common emerging technologies that many organizations are either experimenting with or implementing to optimize intercompany transactions.
Many companies are beginning to experiment with various technology enablers for their intercompany accounting leading practices—which includes ERP cloud systems, process automation solutions, blockchain technology, and other third-party systems.
Before rolling out a pilot program and implementation plan, consider both the strengths and limitations of each of these new technologies to find an appropriate fit for your organization's unique challenges and goals for transformation.
