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Intercompany Reconciliation

Intercompany reconciliation is the process of comparing and correcting transactional records between two or more subsidiaries of a parent company. This activity typically takes place monthly or quarterly and helps organizations avoid issues like double entries to generate a full and complete picture of their financial health.

Related terms

Sustainable Growth Rate
A sustainable growth rate (SGR) is the highest amount of growth a business can have without accumulating further debt.
Total Available Liquidity
Total available liquidity includes 100% of the cash and cash equivalents a business has on hand. It may also include a company’s borrowing capacity.
Weeks of Liquidity on Hand
Weeks of liquidity on hand is a measurement of a business’s available liquidity.
Working Capital Ratio
Working capital ratio (WCR) helps businesses assess their ability to pay current liabilities. More specifically, this liquidity metric determines how many times a company’s current assets can offset these liabilities.
Year-End Close
Year-end close, or “closing the books”, is the process of reviewing, reconciling and preparing financial statements for the end of the fiscal year.