Intercompany accounting journal entries are transactions that are recorded between two separate legal entities within the same corporate group. These intercompany transactions, such as loans or interest payments, must be accurately recorded and accounted for in order to ensure a company’s financial statements are consistent with the consolidated results of all related companies. By understanding the rules and regulations of intercompany accounting, companies can ensure that their books remain accurate and that any discrepancies will be exposed quickly. With proper intercompany accounting, companies can have better control over their finances and make sure they are conducting business operations in an ethical manner.