Multi-Entity Cleanup & Accounting Optimization

Project overview

Led a comprehensive accounting cleanup for a four-entity business group with complex intercompany activity, significant AP and AR issues, duplicate transactions, and inaccurate financial reporting.

The challenge

The entities were frequently paying each other’s expenses directly, without properly recording intercompany transfers. This created reconciliation problems, an AP backlog, duplicate expenses, and inaccurate intercompany balances. Manual billing processes also created unnecessary administrative work.

What I did

Established proper intercompany transaction procedures and trained accounting staff on the correct flow of funds between entities.

Completed a comprehensive intercompany reconciliation across all four entities.

Resolved a significant AP backlog by identifying payments made from other entities and matching them to the correct invoices.

Identified and eliminated duplicate transactions that had caused expenses to be overstated.

Corrected intercompany loan balances and the allocation of interest and principal.

Reviewed and cleaned up AR activity.

Automated recurring billing in QuickBooks based on contractual terms.

Trained staff on maintaining proper intercompany accounting going forward.

Results

The cleanup brought AP and AR up to date and improved the accuracy of the financial statements. Expenses and intercompany balances were properly stated, giving management a reliable picture of the financial position and operating performance of each entity.

The improved financial reporting also supported the company during a sale process and provided lenders and prospective buyers with greater confidence in the accuracy and financial health of the business.