Free tool
Intercompany reconciliation
Put each company's intercompany balances side by side, in one reporting currency. See which pairs agree, which are out by more than your tolerance, and which have only one side booked.
- No sign-up
- Runs in your browser
- Paste from a spreadsheet
- CSV download
Reconciliation
- Pairs matched
- within your tolerance
- Gaps over tolerance
- pairs to investigate
- One-sided balances
- booked by one company only
- Total unreconciled
Pairs, both ways
Each side is the sum of that company's balances with the other, in USD. They should add up to zero.
| Pair | First company's side | Other side | Difference | Diff % | Status | What to check |
|---|
One-sided balances
A balance with no entry at all on the other side: often an invoice or recharge not yet booked by the counterparty.
Balances in USD
| Company | Counterparty | Account | Amount | Currency | Rate | In USD |
|---|
The method
Why intercompany balances drift apart.
When one group company lends to or invoices another, both books record it: a receivable in one, a payable in the other. Before consolidating, the two sides should cancel out. When they don't, the consolidated balance sheet is wrong by the difference.
- Convert every intercompany balance to one reporting currency, at the same closing rate for both sides.
- Group balances by pair, both ways: everything A shows with B, and everything B shows with A.
- Add the two sides. Receivables are positive and payables negative, so a clean pair adds up to zero.
- Investigate any gap bigger than your tolerance, and any balance with nothing on the other side.
The usual causes
Exchange rates. In the example, the Indian company booked a USD 120,000 loan in rupees at 83.5 and never revalued it. At today's rate of 88 the rupee payable is worth less in dollars, so the two sides no longer agree. Timing. An invoice or payment reaches one ledger in this period and the other in the next. Coding. The entry went to a third-party account, or to the wrong group company.
Illustrative only. This is a simplified check for learning and working papers. It isn't accounting or tax advice, and the example companies and rates are made up. Agree the treatment of differences with your accountant or auditor.
Stop matching intercompany by hand.
Connect your group's companies and accept the pairs Halfkit suggests. Each company gets 90 days free from signup (first 100 signups, with 100 AI credits), no card needed.