Intercompany/Intra-company Operations involve two or more companies with each other which implies that these make an exchange of goods, services, or funds generating a link that is usually reflected in their accounting records. Intercompany/intra-company operations can be on a minimal scale, amounting to a single transaction in the life of the companies, or on a large scale, involving regular and necessary operations for the best utilization of their resources.
In this regard, and in order to generate the ideal mechanisms for companies to continue importing and exporting products that benefit the national economy and health, the following measures have been taken:
Some examples could be:
- Money loans (fund transfers, checking accounts, working capital)
- Third-party payments (vendor services, leases, purchases)
- Third-party collections (customers, employees, sales)
It is important that Identify, recognize, and evaluate the necessity and frequency of intercompany operations conducted by your companies. with the aim of observing the risks and advantages it represents.
Remember that every transaction reflected in your accounting must be duly supported and justified, which is simply resolved by documenting it.
The advantages of documenting your intercompany operations can be:
- Reduce tax objections
- Saving on your business and operational resources
- Reduce legal contingencies in basically any area
- Improve the organization and transparency of your company
- Raise your quality and service standards
- Comply with legal, financial, and accounting regulations
- Identify areas of focus for the commission of corrupt or illicit activities and, therefore, avoid them.
The documentation to support and justify your intercompany/intracompany operations should be according to the real behavior of its operation, therefore, the better the operation is identified, the simpler the document that accredits it will be. The regularization of your operations should not be a cumbersome problem for you to carry out, but rather a process that will lead you to improve your productivity.
