Intrachain — a revolutionary Blockchain solution for every corporation
In the following, I am going to give you a detailed insight into the world of accounting which becomes more and more international and consequently more complex. I am further going to elaborate on why Intrachain is the solution to the rising complexity and resulting faulty financial statements.
The Cause
In today’s globalized world, multinational firms often have numerous subsidiaries across dispersed geographies. As a side effect, they are characterized by heterogeneous financial systems, multiple, often incompatible IT landscapes, servers, and sorts of data. In addition to that, multinational value chains became part of daily business practices. All of this leads to a notable internationalization and consequently a higher complexity of accounting processes.
Every firm, however, is required by law to draw up accurate and transparent financial statements. When financial statements are created, accurate data are absolutely vital for every stakeholder involved. Governments, shareholders, prospective investors, the firm’s management, and financial institutions rely on them. Therefore, the accounting division is responsible of keeping track of every transaction within the firm, as well as between different firms.
The Challenge
When aiming for a fast closing of the books, the process of intercompany reconciliation is considered the most significant bottleneck of accounting practices. Common challenges that firms face with reconciliation are also late reconciliation, missing intragroup reconciliation, incorrect bookings, currency differences, and period variations. In theory, all of this could be circumvented if all intragroup bookings took place on the same day. If only fixed valid booking records were given, a large part of the incorrect bookings would be eliminated. Additionally, an automated solution could save costs, lead to faster closure of the books and provide accurate information for investment decisions.
Intrachain — The Solution
Intrachain helps to bring the solution from theory to practice. In doing so, Intrachain has developed the first process mining software with an integrated blockchain for intragroup cost allocation and transactions, which can avoid the flaws of manual reconciliation processes as performed by many large corporations to date and can satisfy the demand for automation.
Integrating blockchain technology into this process mining engine is the pivotal solution for companies to keep track of their cost transaction accuracy. With the Intrachain Token, they can from now on guarantee save, transparent and accurate cost allocations and transactions within their subsidiaries.
