When intercompany eliminations are worked out by hand in spreadsheets, the two sides of a transaction rarely tie out on their own, and the audit is where the gaps finally surface. cifraHQ posts both entities at once and matches related transactions automatically, so intercompany receivables and payables stay in step all year instead of becoming a year-end reconciliation project.
Here is how it usually goes wrong. Entity A books a sale to Entity B, someone is supposed to record the matching purchase in B, and a timing difference or a mistyped amount means the two never quite agree. The mismatch sits unnoticed until year-end, when the auditor flags an intercompany balance that does not eliminate and the team spends days tracing which side is right. Because nothing matches the entries automatically, every period quietly accumulates more of these gaps. Posting both legs together closes the door on them.
Manual intercompany accounting is error-prone
Manually posting to both entities leads to timing differences, amount mismatches, and out-of-balance conditions.
Month-end reconciliation of intercompany balances takes days. Finding the mismatches is like finding needles in haystacks.
When entities use different currencies, intercompany transactions create FX differences that are hard to track.
Auditors scrutinize intercompany transactions closely. Lack of documentation and matching raises red flags.
Automatic, balanced, reconciled
Post once, and cifraHQ creates the corresponding entry in the related entity automatically. Always balanced.
Intercompany transactions match instantly. No waiting for month-end. Exceptions highlighted immediately.
Cross-currency intercompany transactions converted automatically. FX differences tracked in dedicated accounts.
Every intercompany transaction linked bidirectionally. Full documentation for audit purposes.
All common intercompany transactions handled automatically
Everything you need for seamless multi-entity accounting
Each transaction is tied to its counterpart in the other entity automatically, so you can always see both sides at once instead of proving the link by hand during the audit.
Both legs post at the same moment, so intercompany receivables and payables always equal each other and the group balance eliminates cleanly at consolidation.
Require sign-off on transactions above a threshold or of a sensitive type, so the entries auditors scrutinize most carry a documented approval instead of raising a red flag.
See how intercompany balances are aging and what remains to settle, with netting and settlement entries automated, so old balances do not linger unexplained between entities.
Set transfer pricing rules once and have the system check intercompany pricing against arm's length requirements, so cross-border charges hold up when tax authorities look.
A live reconciliation view separates matched, unmatched, and disputed transactions, so you catch the exceptions in the current period rather than discovering them all at year-end.
Intercompany transactions made simple
Create invoice, transfer, or journal entry. Mark the counterparty as an intercompany entity.
System automatically creates the matching entry in the counterparty's books simultaneously.
Both sides linked together. Intercompany balances reconcile automatically in real-time.
When payment flows, settlement entries posted on both sides maintaining balanced positions.
Stop struggling with manual intercompany entries. cifraHQ automates the entire process from transaction to reconciliation.