Intercompany
Intercompany refers to business transactions and relationships that happen between different parts of the same organization or related companies. Think of it like different branches of a family tree doing business with each other. When companies have multiple divisions, subsidiaries, or international offices, they need specialists who understand how to properly record, track, and balance these internal dealings. This is important for accurate financial reporting and tax compliance. Other terms you might see for this include "intercompany accounting," "intercompany transactions," or "intercompany reconciliation."
Examples in Resumes
Managed Intercompany reconciliations for 15 global subsidiaries
Led monthly Intercompany settlement process across 5 business units
Implemented new Intercompany accounting procedures reducing processing time by 40%
Handled Intercompany Transactions for multi-billion dollar organization
Typical job title: "Intercompany Accountants"
Also try searching for:
Where to Find Intercompany Accountants
Professional Associations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle implementing an intercompany accounting system for a global organization?
Expected Answer: Should discuss experience with setting up policies, procedures, and controls for managing intercompany transactions across multiple countries, including consideration of different currencies, tax implications, and reporting requirements.
Q: How do you ensure intercompany accounts are balanced across all entities?
Expected Answer: Should explain reconciliation processes, matching procedures, and how to resolve discrepancies between entities, including communication strategies with various stakeholders.
Mid Level Questions
Q: What are common challenges in intercompany reconciliation and how do you address them?
Expected Answer: Should discuss timing differences, currency fluctuations, documentation issues, and approaches to resolve these common problems.
Q: Explain the impact of intercompany transactions on financial statements.
Expected Answer: Should demonstrate understanding of how internal transactions affect both individual entity and consolidated financial statements, and why eliminations are necessary.
Junior Level Questions
Q: What is an intercompany transaction? Can you give some examples?
Expected Answer: Should be able to explain basic concepts like internal sales, service charges, or loans between related companies, and why they need special handling.
Q: How do you verify that an intercompany transaction matches on both sides?
Expected Answer: Should explain basic matching process, including checking amounts, dates, and transaction types between two related entities.
Experience Level Indicators
Junior (0-2 years)
- Basic intercompany reconciliations
- Data entry and verification
- Month-end closing support
- Basic Excel skills
Mid (2-5 years)
- Full cycle intercompany accounting
- Problem resolution
- Process improvement
- Team coordination
Senior (5+ years)
- Global accounting operations
- Policy development
- Process automation
- Team management
Red Flags to Watch For
- No experience with multinational accounting
- Lack of attention to detail
- Poor communication skills
- No knowledge of consolidation concepts
- Unfamiliarity with basic accounting principles
Related Terms
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