This checklist outlines the steps required to ensure accurate and timely reconciliation of intercompany transactions to maintain financial integrity and compliance between subsidiaries.
Gather all intercompany transaction details from relevant departments for the reconciliation period.
Ensure the accuracy of all transaction entries, including amounts, currencies, and dates, by cross-referencing with source documents.
Match intercompany transactions between the involved subsidiaries to identify discrepancies.
Investigate any unmatched or erroneous transactions by consulting with relevant teams and resolving any issues found.
Create a reconciliation report summarizing matched transactions and outstanding discrepancies for review.
Have the reconciliation report reviewed and approved by finance management to ensure accuracy and completeness.
Document the steps taken during the reconciliation process for audit purposes and future reference.
Finalize any necessary journal entries to record the reconciled amounts in the accounting system.
Set a date for the next intercompany transaction reconciliation to maintain continuous financial oversight.