Reshaping Intercompany Transactions in the Era of Trade Barriers

This IDC Perspective discusses the high stakes and increasing scrutiny around intercompany transactions, highlighted by cases like the IRS' dispute with Coca-Cola. This scrutiny on intercompany transactions underscores the need for robust systems, governance, and documentation in and outside the United States for multinational corporations. CFOs must modernize operations using fintech innovations such as blockchain and AI to ensure compliance, reduce tax exposure, and maintain investor confidence. Effective management requires seamless collaboration across finance, operations, and IT, supported by integrated technology platforms from vendors."Intercompany transactions are no longer a compliance formality, they're a potential flash point that can impact the bottom line and brand integrity." - Heather Herbst, research director, CFO Tech Agenda