Why Do Accountants Struggle With Intercompany Transactions

If you’ve ever worked with two related companies, you already know this:
Intercompany transactions are the sneakiest troublemakers in accounting.

On the surface, it seems simple.
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Company A sends money to Company B.
Company B pays something on behalf of Company A.
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Both sides record it.
Done… right?

Except it never works out that neatly.

The balances don’t match.
The entries don’t line up.
The differences start small but grow quietly.
And suddenly, you’re spending the last week of the month trying to solve a mystery you did not sign up for.

Today, let’s talk about the real reasons accountants struggle with intercompany work — and how Xenett’s Intercompany Review Point finally fixes this problem in a way that’s simple, clean, and actually makes sense.

Who Ends Up Dealing With Intercompany Messes?

You might expect only large corporations to face intercompany challenges, but the truth is far broader.

Anyone who manages books for:

• A parent and subsidiary
  
• Two sister companies
  
• Two related businesses under the same owner
  
• A group of small companies that “help each other out” financially
  
  

…ends up handling intercompany entries.

These can be:

• Cash transfers
  
• Temporary loans
  
• Reimbursements
  
• Shared expenses
  
  

In other words, everyday transactions — nothing dramatic.
But reconciling them? That’s where the fun stops.

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What Makes Intercompany Transactions So Difficult?

Let’s be honest: the pain comes from the process, not the concept.

You know the transactions.
You know what should match.
But the way accountants have been forced to compare them is far from smooth.

Here’s what typically happens:

1. Export GL data from both entities
   
2. Drop the data into spreadsheets
   
3. Build formulas, filters, VLOOKUPs, SUMIFs — all the classics
   
4. Try to understand which months don’t match
   
5. Then drill deeper into individual transactions
   
6. Then try to match entries by hand
   
7. Then repeat the entire thing when the client posts something new
   
   

It’s slow, tiring, and frustrating.
And every accountant secretly wonders why this process hasn’t been automated yet.

Well… now it has.

When Do Differences Usually Appear?

The short answer: anytime they want to.

But here are the usual suspects:

• Wrong amount posted in one company
  
• Entries broken into smaller pieces in only one entity
  
• Timing differences
  
• Posting to the wrong GL account
  
• Human error (because, well, we’re human)
  
  

Sometimes the difference appears in January but goes unnoticed until September.
Sometimes it appears every month, but by the time you find it, the spreadsheet has become a small monster you try not to disturb.

This makes month-end harder, not because the work is complicated, but because the tools for handling it haven’t kept up.
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Where Do Accountants Lose the Most Time?

This part is universal.

The biggest time drain is trying to answer the question:

“Which month did this difference actually start?”

Finding that one month means scrolling through spreadsheets, comparing two sets of numbers, opening multiple GL reports, flipping back and forth between company files, and hoping the stories match.

You spend more time finding the issue than fixing it.

And by the time you locate the mismatching entries, the month-end checklist is staring at you like, “Hey… remember me?”

Why Did We Build the Intercompany Review Point?

Because accountants shouldn’t have to suffer through broken spreadsheets and detective-like searches to do basic reconciliation.

Intercompany work is important.
It affects accuracy, reporting, audits, and financial transparency.

But the actual comparison work — the part that takes hours — doesn’t have to be manual anymore.

So Xenett set out to fix this by creating a feature that:

• Automatically compares two companies
  
• Shows month-by-month differences
  
• Highlights mismatches clearly in red
  
• Lets you drill into any month instantly
  
• Shows matched and mismatched entries
  
• Allows you to match transactions directly inside Xenett
  
• Syncs corrections back to your accounting file automatically
  
  

No spreadsheets.
No back-and-forth switching.
No guessing.
Just clarity.

How Does Xenett’s Intercompany Review Point Actually Work?

Let’s walk through it step by step, using simple words and zero accounting jargon.

1. Create the Intercompany Review Point

Start just like you create any other review point:

New → Task → Review Point → Intercompany Review Point

That’s it.

2. Map the GL Accounts Between Two Companies

This is where you tell Xenett which accounts belong together.

You simply:

• Choose the GL account in Company A
  
• Select the destination company
  
• Choose the matching GL account in Company B
  
  

Once mapped, Xenett knows how to compare the two sides.

If a GL account isn’t showing up, it usually means the destination company wasn’t selected first — one of the most common user mistakes, now easily avoidable.

3. See Monthly Comparisons Instantly

After mapping, Xenett displays a clean comparison:

• All months
  
• Balances from both companies
  
• Differences (in red if something is off)
  
  

No formulas.
No manual math.
Just clarity on the screen.

You instantly know which month needs attention.

4. Drill Down Into Any Month to See the Exact Transactions

Click the month.
Immediately see:

• Which entries match
  
• Which entries don’t
  
• Dates and amounts
  
• Side-by-side comparisons
  
  

Instead of spending hours searching for the problem, the system shows it to you instantly.

5. Match the Correct Transactions

See two entries that belong together?

Click → Match → Done.

Everything updates automatically.

You don’t need spreadsheets.
You don’t need separate windows open.
You don’t need manual adjustments across two files.
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6. Sync Everything Back to Your Accounting File

Matched entries sync automatically to the accounting system.

But if you’re the “I just want to double-check” type, you can still press manual sync anytime.
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7. Export Reports for Documentation or Audits

Click Export to Excel and get:

• The full monthly comparison
  
• All mismatches highlighted
  
• Transaction-level details
  
  

Auditors love this.
So do managers.
So do accountants who prefer clean documentation.

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Who Benefits From This the Most?

• Accountants handling multiple related companies
  
• Bookkeepers who spend too much time in spreadsheets
  
• Firms with clients that frequently transfer funds between entities
  
• Internal finance teams wanting cleaner month-end reviews
  
• Anyone who wants faster, more accurate reconciliations
  
  

If intercompany work has ever stressed you out, this feature was built for you.
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How Does This Look in a Real Example?

Let’s look at a simple (but very realistic) scenario:

Nova Tech & Dynamic Club — The Loan Story

• January: Nova Tech gives Dynamic Club a $12,000 loan
  
• March: They add another $5,000
  
• September: Dynamic Club repays $7,000
  
  

By logic, the ending balance should be $10,000.

But Xenett shows a $2,000 difference — in bright red.

What happened?

You click September → drill down → instantly see the mismatched entries → match them → Xenett syncs the correction → the difference disappears.

No hunting.
No wasted hours.
No Excel nightmares.

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Where Else Can You Improve Your Month-End Process?

If you’re trying to clean up month-end workflows, you’ll also love our guide on Payroll Accruals — another common area where clarity and automation go a long way.

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👉 Read the guide:

Why This Feature Matters More Than Ever

Intercompany work used to be a tedious, boring, time-eating monster.

But with Xenett:

• You see differences instantly
  
• You find the exact mismatching entries
  
• You match transactions with a click
  
• You sync corrections automatically
  
• You export reports effortlessly
  
  

This isn’t just faster — it’s more accurate, more transparent, and more enjoyable.

Okay, “enjoyable” might be a stretch.
But it’s definitely less painful — and that’s a win.

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Final Question: Are You Ready for Intercompany Transactions That Don’t Fight Back?

Intercompany reconciliation shouldn’t feel like detective work.
It should feel like… well, accounting. Clean. Straightforward. Logical.

That’s what Xenett’s Intercompany Review Point gives you:

• A clear monthly breakdown
  
• Highlighted mismatches
  
• One-click drill downs
  
• Easy matching
  
• Auto-sync
  
• Exportable audit-ready reports
  
  

Less stress.
More accuracy.
And a lot more time saved.