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what is intercompany accounting interc compan accounting refers to the process of recording Financial transactions between different business entities within the same company sounds simple enough right however transactions between subsidiaries arent treated the same as typical third party transactions because they can be used to artificially manipulate Financial results interc company transactions must be removed from financial statements for accounting teams still rooted in spreadsheets this means a docHub amount of extra work searching through hundreds even thousands of transactions to match up the interc company purchase and sales orders manually eliminating these interc company transactions isnt just timec consuming and labor intensive its also prone to costly errors impacting both reporting and compliance thats where the right accounting software comes into play it should have capabilities to manage multiple subsidiary businesses simplifying the process by automatically l
