Go the Distance with Intercompany
When it comes to intercompany, you need a solution that runs the full race from the first shot to the finish line.
Table of Contents
- Your Intercompany Process Is Only as Strong as Its Handoffs
- Don’t Drop the Baton: Why Intercompany Breakdowns Happen
- What Does a High-Performance Intercompany Relay Team Look Like?
- Tackling Intercompany Requires a Race Plan that Addresses People, Process & Technology
- Take Your Teams to the Next Level
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Your Intercompany Process Is Only as Strong as Its Handoffs
Let’s explore the intercompany landscape and what it takes to win.
Like a well-run relay race, your intercompany process depends on clean, timely handoffs of data between teams to keep the pace and cross the finish line successfully. Leveraging the right technology will enable this.
Ready to do this? Here we go.
Navigating intercompany processes can be challenging with countless pain points that disrupt efficiency and hinder success, including:
- Manual activities and long disputes
- Lack of documentation
- Large and growing out of balances
- Untimely settlements
- Write-offs
- Tied up cash
- Transfer pricing issues
- Lack of granularity for reporting
“Intercompany transactions for large multinational corporations can dwarf their external sales, sometimes by as much as a factor of 10 or more.”
What Does a High-Performance Intercompany Relay Team Look Like?
Intercompany operations involve many departments; each one is responsible for a leg of the race and has its own needs and pain points. All of these teams need unified data and a single source of truth to keep the pace.
Accounting sees the whole race strategy, tracks everything, and makes sure transactions are right from the start. What they do has downfield ramifications.
Some companies spend 2 days a month on intercompany
FP&A is responsible for reporting and forecasting. Accurate data is crucial, so ensuring data quality during the collection process is critical.
FP&A employees spend 75% of their time gathering data and administering the process (CFO.com)
Shared Services process a huge volume of transactions, have critical data/reporting needs, and many intercompany processes go through them first.
90% of companies report that intercompany sits with shared services (Deloitte)
Tax needs to ensure they can defend tax positions and transfer pricing, so they need a lot of granular data.
71% of companies report increasing transfer pricing costs (EY)
Treasury wraps up the race and is responsible for all the cash and closing out positions, so they need to know when intercompany tasks are done so they can put funds in the appropriate place.
64% of treasury depts have visibility issues into cash and FX exposure (Deloitte)
Tackling Intercompany Requires a Race Plan that Addresses People, Process & Technology
BlackLine’s Intercompany solution is the only end-to-end holistic solution that covers transaction creation to settlement, plus trade and non-trade. Including all involved departments in the race plan is what it takes to go the distance and win.
Create:
Your command center for transaction management
Balance & Resolve:
Gain confidence in your financial results through standardization and automation
Net & Settle:
Your running mate for the last stretch of the transaction cycle
Take Your Teams to the Next Level
“VAT was probably one of the hardest to solve in terms of complexity, because every country in Europe has their own VAT rules,” says Dubbelman. “We were able to bring together all the parts of what was needed to make this system and BlackLine work well from the beginning.”
Take Your Teams to the Next Level
- Shortening your close
- Resolving imbalances
- Improving tax defensibility
- Freeing up cash