Balances
Receivable in one entity equals payable in the other.
All finance operations services
Finance Operations
Inter-Company Reconciliation
FinAura agrees the balances between your group companies every month: inter-company sales, cross-charges, loans and recoveries are matched on both sides, differences are cleared at source, and the eliminations for consolidation are ready. It saves weeks at year-end and keeps related-party disclosures consistent.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Inter-Company Reconciliation Covers
Every transaction between group entities, agreed on both sides.
Cross-charges
Shared costs invoiced with GST between entities.
Loans and interest
Inter-company loans and interest recorded on both sides.
Currency
Foreign entities agreed at consistent exchange rates.
Eliminations
Entries ready for consolidation.
Related parties
Disclosures that agree across every set of accounts.
How the month runs
How It Works
Same cut-off, both sides, every month.
Step 1
Align
- Common cut-off
- Shared account codes
- Charge policy
Step 2
Charge
- Cross-charges invoiced
- Interest posted
- GST applied
Step 3
Match
- Both sides compared
- Differences traced
- Corrected at source
Step 4
Eliminate
- Elimination entries
- Disclosure schedule
- Sign-off
Your part
What We Need From You
- 01Access to each entity's books
- 02Agreements between group companies
- 03The basis for shared costs
- 04Contacts in each entity's finance team
Our part
What You Get
- Agreed balances every month
- Cross-charges with the right GST
- Elimination entries ready
- Related-party schedules that match
A common question
Why do group balances not agree?
One entity records a charge this month and the other next month, uses a different rate, or books a payment against the wrong account. Each year the gap grows until someone spends weeks unpicking it at audit time.
Monthly matching with a shared cut-off keeps the differences small and explained.
See multi-entity accountingGroupConsolidation ready
MatchingBoth sides agreed
EntitiesEach set of books
Who it is for
Who It Is For
Indian groups
Holding and operating companies.
Indian subsidiaries
Of foreign parents.
Businesses with several GSTINs
Branches treated as distinct persons.
Groups preparing consolidation
Year-end without the scramble.
The rules, in plain English
What the Law Says
Companies Act, 2013
Section 129(3)
A company with one or more subsidiaries prepares consolidated financial statements in addition to its own.
Official source: mca.gov.inCGST Act, 2017
Section 25 and Schedule I
Each registration of a business is a distinct person, and supplies between related or distinct persons can be taxable even without consideration.
Official source: cbic-gst.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Inter-Company Reconciliation: Questions, Answered
What is inter-company reconciliation?
Agreeing the transactions and balances between companies in the same group, so that what one records as receivable the other records as payable.
Do cross-charges between group companies attract GST?
Supplies between related or distinct persons are generally taxable even without consideration in some cases. We review each flow and apply GST correctly.
Do you prepare consolidated financial statements?
Yes, through our accounting team. Inter-company reconciliation is the step that makes consolidation quick.
Does this affect transfer pricing?
Transactions with foreign group companies may need transfer pricing documentation; we coordinate that with our tax team.
Often Taken Together
All 10 Finance Operations services01Finance OperationsMonth-End and Year-End CloseA fixed close calendar: accruals, provisions, reconciliations and reviews done in order, so management sees final numbers early in the next month.02Finance OperationsVendor and Customer ReconciliationLedgers agreed with your suppliers and customers, so disputes are settled on facts and balances confirmed before year-end.03Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.04Tax & ComplianceTaxationGST, income tax, TDS, tax planning and notice replies, from reconciled data.