oboloo Glossary

Intercompany Accounts

oboloo Glossary

Intercompany Accounts

Intercompany accounts, also known as intracompany accounts, are the financial transactions that take place between different groups or divisions within an organization. Intercompany accounts can include accounts receivable (the amount owned by the company to another company in the same group) and accounts payable (the amount owed by one company to another in a group). Intercompany accounts ensure that all of the companies within the group stay financially linked, allowing them to work together towards shared goals. Intercompany accounts are also key to understanding how different business units interact with each other, so they can be used to identify areas of strength and weakness across the enterprise.