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Intercompany reconciliation is specific to companies with multiple subsidiaries under the same parent group. It's a crucial step in the intercompany accounting process and for preparing a consolidated statement for financial reporting. Reconciliation helps remove duplicate entries and rectify errors.
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Additionally, it provides real-time visibility into financial data, empowering businesses to make timely and informed decisions based on accurate information. Businesses should assess their current processes to identify areas for improvement and select the right tools that align with their specific needs.
These errors can have a significant impact on financial statements, leading to incorrect financialanalysis and decision-making. To overcome this problem, businesses should prioritize data accuracy and implement robust ERP solutions that automate data entry and reconciliation processes.
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