Almost $40 trillion annually are transacted between business entities or in other words, through inter company transactions. This accounts for around 30-40 per cent of global economy. In light of this, Grant Thornton LLP introduced blockchain technologies to provide greater transparency to inter company transactions.
Inter.x is the Blockchain platform that can be used for managing intercompany transactions. The new platform has been set in-house, but has been made available to clients so as to manage all the dealings between financial entities of a business. It brings data-analytics dashboards that monitor these intercompany transactions in real-time. It helps assist companies as they try to adapt with disruptions caused by this pandemic.
There have been very few developments in this space. So far, finance teams had to make do with manually going through excel files and email which is not very effective to say the least. This issue is addressed by introducing a management-by-exception model.
Also, these businesses faced many issues with regards to matching intercompany transactions, particularly for multinational clients. Even though they sound easy, intercompany transactions is the 5th largest cause for financial restatements. A lot of their clients were found to have a lack of personnel in handling proper flow through their ERP systems.
What inter.x does is that it integrates with the business’s ERP systems to make an end-to-end workflow that acts as a single transaction throughout. This lets companies easily recognize and takeprompt decisions rather than having to wait for a monthly or even annual accounting cycle. As it is built on blockchain technology, inter.x provides tracking facilities for intercompany transactions with an audit trail that can’t be forged.
As there’s massive changes happening to businesses and the economy as a whole, companies are but forced to adapt to these changes, this is compounded by the fact that there is no estimate as to when this pandemic will ever see its demise and how the economy will recover once it does. Cash is moving out quite quickly and the need for cash is on the rise as time goes on.Various measures are being taken by governments but for how long these stay effective are yet to be seen.