Intercompany accounting refers to recording and managing financial transactions between entities within the same parent company, including subsidiaries, branches and affiliates. These transactions can involve transfers of goods, services or funds and must be properly accounted for so that consolidated financial statements do not double‑count revenue or expenses. Properly handling intercompany transactions ensures transparency and compliance with regulations, and it provides an accurate picture of each entity's performance. In practice, intercompany transactions may be downstream (parent to subsidiary), upstream (subsidiary to parent) or lateral (between subsidiaries).
Purity Muriuki is the Founder at her own media outlet. She focuses on the intersection of technology and software, with a keen interest in corporate finance, startups, entrepreneurship, and corporate sustainability. Purity's insights and expertise have been featured in Startup.info, Social News Daily, and Apple Gazette.
