New survey shows widespread intercompany issues impacting corporations’ business, finance and accounting operations and only getting worse.

FourQ, the leading provider of intercompany financial management software to streamline the global operations of the world’s largest companies, announced the results of a survey it conducted in conjunction with Dimensional Research. The research, titled “The Reality of Intercompany,” uncovered widespread issues related to corporations’ intercompany processes and procedures that negatively impact business outcomes and the operations of their finance, accounting, and tax teams.

Key findings in the report include:

  • Intercompany is a mess and only getting worse: Almost all (97%) of respondents say challenges within intercompany have a negative impact on business outcomes. Nearly half of respondents report that overdue intercompany balances create business uncertainty (49%), increase risk of SEC investigations (43%) and cause missed tax deduction opportunities (43%). Nearly half (48%) report unreconciled balances that are more than five years old.
  • Intercompany issues negatively impact the accounting, finance and tax operations while stressing the teams: Nearly all respondents (97%) say challenges with intercompany have a negative impact on finance and accounting operations. Concerningly, 98% say intercompany issues negatively impact their employees. Specifically, 60% of respondents report that their company’s intercompany processes increase stress among team members causing physical or mental health issues. Well over half (57%) report that employee churn makes it harder for the remaining team to resolve intercompany issues.
  • ERPs only partially solve intercompany issues; Improved technology holds promise: 96% of respondents agree that ERP systems only partially solve intercompany challenges. An almost equal amount (97%) say they would benefit from better technology capabilities for intercompany, with automated intelligent intercompany analytics and reporting topping the list (68%). Other capabilities that would improve intercompany operations include end-to-end transactional transparency for all intercompany stakeholders (56%); centralized dispute management (55%); automated cost and tax allocation (55%); automation of manual intercompany processes (50%); and allocated vendor invoice management (47%).