Intercompany Reconciliation Burndown Service
Reconcile with Confidence. Close Faster. Report Accurately.
Intercompany transactions are among the most complex and error-prone areas of group financial reporting. Every transaction between related entities—sales, purchases, loans, management fees, cost allocations, and dividends—must be recorded accurately in each entity’s books, eliminated on consolidation, and reconciled to ensure accuracy. When intercompany balances don’t match, the consequences are significant: delayed month-end closes, audit qualifications, misstated consolidated financial statements, and loss of management confidence. At Qeeva Advisory, we provide intercompany reconciliation burndown services that help you reconcile intercompany balances systematically, reduce backlog, and achieve accurate, timely consolidation.
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Why Nigerian Groups Struggle with Intercompany Reconciliation
Intercompany reconciliation is a challenge for groups of all sizes, but Nigerian groups face particular complexities. Here are the most critical gaps we help you address.
Accumulated Reconciliation Backlog – Many groups accumulate intercompany reconciliation backlogs over months or years. The longer the backlog, the harder it becomes to reconcile, and the greater the risk of unreconciled differences. Burndown—systematically working through the backlog—is essential to restore accuracy.
Mismatched Balances Between Entities – Intercompany balances frequently don’t match between counterparties. Entity A records a receivable that Entity B doesn’t record, or records different amounts. These mismatches may arise from timing differences, errors, unrecorded transactions, or different accounting treatments.
Timing Differences – Transactions in transit at period-end create timing differences. Goods shipped but not received, payments in transit, and invoices not yet recorded all create timing differences that must be identified and reconciled.
Multiple Currencies – Groups with foreign subsidiaries face additional complexity from currency translation. Intercompany balances denominated in foreign currencies must be translated, creating exchange differences that must be reconciled.
Volume and Complexity – Large groups may have thousands of intercompany transactions each month across multiple entities, currencies, and transaction types. Manual reconciliation at this volume is impractical and error-prone.
Different Systems and Processes – Entities within a group may use different accounting systems, chart of accounts, and processes. This makes reconciliation more difficult and increases the risk of error.
Missing Documentation – Intercompany transactions may not be properly documented, making it difficult to identify and reconcile differences. Intercompany agreements should specify pricing, terms, and settlement arrangements.
Consolidation Delays – Unreconciled intercompany balances delay consolidation, extending the close process and delaying management reporting.
Audit Findings – Auditors require evidence that intercompany balances are reconciled and eliminated. Unreconciled balances lead to audit findings and may result in qualified opinions.
Management Visibility – Without reconciled intercompany balances, management cannot have confidence in consolidated financial information and may make decisions based on inaccurate data.
The Solution: Systematic Intercompany Reconciliation Burndown
We provide intercompany reconciliation burndown services that help you reconcile intercompany balances systematically, reduce backlog, and achieve accurate, timely consolidation. Our approach combines rigorous reconciliation methodology, data analytics, and process improvement.
At Qeeva Advisory, we understand that intercompany reconciliation burndown is not just about matching numbers—it is about identifying root causes, correcting errors, and implementing processes that prevent future mismatches. Our team brings deep expertise in group accounting, consolidation, and financial reporting.
Whether you need to clear an accumulated backlog, establish ongoing reconciliation processes, or implement systems and controls to prevent future mismatches, we provide the expertise and commitment to help you succeed.
Our Comprehensive Intercompany Reconciliation Burndown Services
We offer end-to-end intercompany reconciliation burndown services tailored to the Nigerian business environment.
Intercompany Reconciliation Burndown
We systematically work through your reconciliation backlog.
Backlog Assessment – We assess the volume, age, and complexity of your intercompany reconciliation backlog. We determine the scope of the burndown exercise and prioritise by materiality and risk.
Intercompany Balance Extraction – We extract intercompany balances from each entity’s books, including receivables, payables, loans, interest, management fees, and other intercompany transactions.
Balance Matching – We match intercompany balances between counterparties, identifying where balances agree and where they differ.
Difference Identification – We identify and categorise differences, including timing differences, errors, unrecorded transactions, and accounting treatment differences.
Difference Investigation – We investigate each difference, tracing transactions, reviewing documentation, and determining root causes.
Difference Resolution – We propose and support resolution of differences, including correcting entries, adjusting balances, and documenting resolutions.
Burndown Tracking – We track burndown progress, reporting on balances reconciled, differences resolved, and remaining backlog.
Sign-Off and Certification – We support sign-off and certification of reconciled balances, providing documentation for audit and management.
Intercompany Reconciliation Process Design
We help you establish robust ongoing reconciliation processes.
Reconciliation Policy Development – We develop intercompany reconciliation policies that define scope, frequency, responsibilities, and procedures.
Reconciliation Calendar – We establish a reconciliation calendar that aligns with your close process and ensures timely reconciliation.
Roles and Responsibilities – We define roles and responsibilities for intercompany reconciliation, ensuring clear accountability.
Reconciliation Templates and Tools – We develop reconciliation templates and tools that standardise and streamline the process.
Escalation Procedures – We establish escalation procedures for unresolved differences.
Documentation Standards – We define documentation standards that ensure reconciliation evidence is complete and auditable.
Intercompany Transaction Mapping
We map intercompany transactions to understand flows and relationships.
Entity Relationship Mapping – We map the relationships between group entities, including ownership, control, and transaction flows.
Transaction Flow Mapping – We map intercompany transaction flows, including sales, purchases, loans, management fees, and cost allocations.
Pricing and Terms Review – We review intercompany pricing and terms, ensuring they are documented and consistently applied.
Transfer Pricing Documentation – We support transfer pricing documentation, ensuring intercompany transactions comply with Nigerian transfer pricing regulations.
Intercompany Agreement Review – We review intercompany agreements, ensuring they are complete and current.
Intercompany Elimination and Consolidation
We support accurate elimination and consolidation.
Elimination Journal Preparation – We prepare elimination journals for intercompany transactions, including sales and purchases, receivables and payables, loans, interest, and dividends.
Unrealised Profit Elimination – We eliminate unrealised profits on intercompany inventory transactions, ensuring consolidated inventory is correctly stated.
Consolidation Support – We support the consolidation process, ensuring intercompany transactions are correctly eliminated.
Non-Controlling Interest – We support accounting for non-controlling interests, including attribution of profits and equity.
Currency Translation – We support currency translation of foreign subsidiary balances, including intercompany balances.
Consolidation Reporting – We prepare consolidated financial statements and supporting schedules.
Root Cause Analysis and Process Improvement
We address the root causes of reconciliation issues.
Root Cause Analysis – We analyse the root causes of intercompany differences, including process gaps, system limitations, and control weaknesses.
Process Improvement Recommendations – We recommend process improvements that reduce future differences.
Control Design – We design controls that prevent intercompany mismatches, including automated matching, reconciliation controls, and exception reporting.
System Configuration – We support system configuration that facilitates intercompany reconciliation, including intercompany matching, automated eliminations, and reporting.
Training and Capacity Building – We train your team on intercompany reconciliation processes and controls.
Intercompany Governance and Controls
We help you establish governance and controls over intercompany transactions.
Intercompany Policy Development – We develop intercompany policies that define how transactions should be initiated, approved, recorded, and settled.
Approval and Authorisation Controls – We design controls over intercompany transaction approval and authorisation.
Segregation of Duties – We establish segregation of duties to prevent errors and fraud.
Reconciliation Controls – We design controls that ensure intercompany balances are reconciled regularly and differences resolved.
Monitoring and Reporting – We establish monitoring and reporting that provides visibility into intercompany balances and reconciliation status.
Audit Readiness – We prepare documentation and evidence that supports audit review of intercompany transactions.
Intercompany Automation and Technology
We help you automate intercompany reconciliation.
Intercompany Reconciliation Software – We help you select and implement intercompany reconciliation software that automates matching, difference identification, and reporting.
Automated Matching – We implement automated matching that reduces manual effort and improves accuracy.
Exception Reporting – We implement exception reporting that highlights differences requiring investigation.
Workflow Automation – We implement workflow automation that routes differences to the right owners for resolution.
Dashboard and Reporting – We implement dashboards that provide real-time visibility into reconciliation status and outstanding differences.
Integration with ERP – We integrate intercompany reconciliation tools with your ERP system, ensuring data consistency.
Multi-Currency Intercompany Reconciliation
We handle the complexity of multi-currency intercompany balances.
Currency Translation – We translate intercompany balances denominated in foreign currencies, applying appropriate exchange rates.
Exchange Difference Analysis – We analyse exchange differences arising from intercompany balances, identifying whether differences are due to currency translation or underlying transactions.
Exchange Difference Resolution – We support resolution of exchange differences, including whether they should be recognised in profit or loss or equity.
Hedging Documentation – We support documentation of hedging arrangements for intercompany foreign currency exposures.
Intercompany Loan and Interest Reconciliation
We reconcile intercompany loans and interest.
Loan Balance Reconciliation – We reconcile intercompany loan balances between lender and borrower entities.
Interest Calculation Verification – We verify interest calculations, ensuring they are correct and consistently applied.
Interest Accrual Reconciliation – We reconcile interest accruals between entities.
Interest Elimination – We support elimination of intercompany interest on consolidation.
Loan Documentation Review – We review loan documentation, ensuring terms are documented and consistently applied.
Management Fee and Cost Allocation Reconciliation
We reconcile management fees and cost allocations.
Management Fee Reconciliation – We reconcile management fee charges between entities.
Cost Allocation Verification – We verify cost allocations, ensuring they are calculated correctly and consistently applied.
Allocation Documentation – We review allocation documentation, ensuring methodology is documented and supportable.
Elimination Support – We support elimination of management fees and cost allocations on consolidation.
Dividend and Equity Transaction Reconciliation
We reconcile dividends and equity transactions.
Dividend Reconciliation – We reconcile dividend payments between subsidiary and parent entities.
Dividend Elimination – We support elimination of intercompany dividends on consolidation.
Equity Transaction Reconciliation – We reconcile equity transactions between entities, including share issuances, transfers, and capital contributions.
Our Reconciliation Burndown Methodology
We follow a structured, systematic methodology for intercompany reconciliation burndown.
Phase 1: Scoping and Planning – We define the scope of the burndown exercise, including entities, periods, and transaction types. We develop a burndown plan and timeline.
Phase 2: Data Extraction – We extract intercompany balances and transactions from each entity’s books.
Phase 3: Matching and Difference Identification – We match intercompany balances between counterparties and identify differences.
Phase 4: Investigation and Root Cause Analysis – We investigate each difference, determining root causes and proposing resolutions.
Phase 5: Resolution and Adjustment – We support resolution of differences, including correcting entries and adjustments.
Phase 6: Reconciliation Sign-Off – We document and sign off reconciled balances.
Phase 7: Process Improvement – We recommend and support process improvements that prevent future mismatches.
Industries We Serve
We provide intercompany reconciliation burndown services across multiple sectors in Nigeria.
Banking and Financial Services – We help banks and financial institutions reconcile intercompany balances across subsidiaries, branches, and business units.
Manufacturing – We help manufacturers reconcile intercompany sales, purchases, and inventory transactions across group entities.
Oil and Gas – We help energy companies reconcile intercompany transactions across joint ventures, subsidiaries, and affiliates.
Retail and Consumer Goods – We help retailers reconcile intercompany transactions across group entities.
Telecommunications – We help telecom companies reconcile intercompany transactions across group entities.
Professional Services – We help professional service firms reconcile intercompany transactions across group entities.
Real Estate and Construction – We help developers and construction companies reconcile intercompany transactions across project entities.
Technology and Digital – We help tech companies reconcile intercompany transactions across group entities.
Healthcare – We help healthcare groups reconcile intercompany transactions across hospitals, clinics, and subsidiaries.
Conglomerates – We help diversified groups reconcile intercompany transactions across multiple business units.
Non-Profit and NGOs – We help mission-driven organisations reconcile intercompany transactions across group entities.
Why Choose Qeeva Advisory for Intercompany Reconciliation Burndown
Deep Group Accounting Expertise – We have deep expertise in group accounting, consolidation, and intercompany transactions. We understand the complexity of multi-entity reporting.
Systematic Burndown Approach – We take a systematic approach to burndown, working through the backlog methodically and tracking progress.
Data Analytics Capability – We leverage data analytics to match balances, identify differences, and analyse patterns.
Root Cause Focus – We don’t just fix differences—we identify root causes and implement improvements that prevent future mismatches.
Practical and Actionable – We provide practical solutions tailored to your business size, industry, and specific challenges.
Audit-Ready Documentation – We produce documentation that withstands audit scrutiny and supports consolidation.
Technology-Enabled – We leverage intercompany reconciliation tools and ERP functionality to automate and streamline reconciliation.
End-to-End Support – We provide comprehensive services from backlog burndown to process design to ongoing support.
Long-Term Partnership – We build lasting relationships, providing ongoing support as your group evolves.
Confidentiality and Integrity – We treat your financial information with the highest level of confidentiality.
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Suggested Reading
IFRS vs. Nigerian GAAP: Key Differences Every Business Should Know – The transition from Nigerian GAAP to IFRS represents a significant milestone in Nigeria’s financial reporting history.
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Common Accounting Errors That Affect Profitability in Nigeria – Accounting errors quietly drain profits, attract penalties, and limit growth.
Deferred Tax Asset Validation Burndown: Complete Guide for Nigerian Businesses – Deferred tax asset validation is a critical financial reporting discipline that has become even more important with the enactment of the NTA 2025.
Frequently Asked Questions (FAQ)
1. What is intercompany reconciliation?
Intercompany reconciliation is the process of matching transactions and balances between related entities within a group. It ensures that intercompany transactions are recorded consistently and that balances agree before consolidation.
2. Why is intercompany reconciliation important?
Intercompany reconciliation is essential for accurate consolidation, reliable financial reporting, audit compliance, and management confidence. Unreconciled intercompany balances lead to misstated consolidated financial statements, audit findings, and delayed closes.
3. What is intercompany reconciliation burndown?
Intercompany reconciliation burndown is the systematic process of working through an accumulated backlog of unreconciled intercompany balances. It involves matching balances, identifying differences, investigating root causes, and resolving differences.
4. What causes intercompany differences?
Common causes include timing differences (transactions in transit), errors (incorrect amounts or accounts), unrecorded transactions, different accounting treatments, currency translation differences, and missing documentation.
5. How do you reconcile intercompany balances?
We extract intercompany balances from each entity’s books, match balances between counterparties, identify differences, investigate root causes, and support resolution.
6. What is intercompany elimination?
Intercompany elimination is the process of removing intercompany transactions and balances from consolidated financial statements. This includes eliminating intercompany sales and purchases, receivables and payables, loans, interest, and dividends.
7. What is unrealised profit elimination?
Unrealised profit elimination is the process of removing profits on intercompany inventory transactions that have not yet been sold to external parties. This ensures consolidated inventory is stated at cost to the group.
8. How do you handle multi-currency intercompany reconciliation?
We translate intercompany balances denominated in foreign currencies, analyse exchange differences, and support resolution of differences including whether they should be recognised in profit or loss or equity.
9. How can we prevent future intercompany mismatches?
We help you implement controls including automated matching, reconciliation controls, exception reporting, and process improvements. We also support implementation of intercompany reconciliation software.
10. Do you serve businesses outside Lagos?
Yes. While our head office is in Ikeja, Lagos, we serve businesses across Nigeria. Our intercompany reconciliation burndown services are available to clients regardless of location.
11. How do I get started?
Contact us to schedule your free consultation. We’ll discuss your intercompany reconciliation needs, assess your situation, and provide recommendations for how we can help.
Contact Us
Reconcile with confidence, close faster, and report accurately. Let us build a partnership that helps you achieve accurate intercompany reconciliation and timely consolidation.
Schedule Your Free Consultation to discuss your intercompany reconciliation burndown needs and explore how we can help.
Phone: +234 802 320 0801, +234 807 576 5799
Email: info@qeeva.com
Address: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria
Business Hours: Monday to Friday, 8:00 AM – 6:00 PM WAT
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