Bookkeeping
Intercompany accounting
Bookkeeping across two or more related Australian entities, with intercompany loans, management charges and transfers tracked and eliminated on the consolidated view so group reports are not overstated, and each entity's own books still stand on their own for GST and tax purposes.
Bank reconciliation summary
Illustrative client · August 2026
AUD
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri, 28 Aug, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
Consolidated books that eliminate what should not count twice
Australian groups running more than one Pty Ltd entity, a holding structure and a trading entity, or a trust alongside a company, need intercompany loans, management charges and transfers tracked separately from external trading, or the consolidated numbers overstate what the group actually earns. Finbryn keeps each entity's books separately and produces a consolidated set with intercompany balances eliminated, under Australian Accounting Standards.
We build a chart of accounts that matches across every related entity so consolidation is a straightforward roll-up rather than a manual reconciliation project each time reports are needed. Intercompany loans, allocations and management charges are tracked and kept in balance between the entities, and eliminated on the consolidated view so a transfer from one entity to another does not appear as revenue and expense at the group level.
GST grouping is a separate question from accounting consolidation: some related Australian entities elect to form a GST group with a representative member, which changes how BAS reporting works even though each entity still needs its own set of books. We keep the accounting consolidation and the GST group structure aligned rather than treating them as the same thing.
Different software across entities
It is common for one entity in a group to run on Xero and another on MYOB or QuickBooks Online, often because they were acquired or set up at different times. We can work across platforms, though a shared platform makes consolidation faster and cheaper to maintain going forward, and we will say so plainly if the cost of staying split outweighs the disruption of moving to one system.
Questions
Frequently asked questions: Intercompany accounting
How do you handle intercompany loans between entities?
Each loan is tracked on its own ledger with interest, if any, calculated consistently, and eliminated on the consolidated set so it does not inflate the group total.
Does a GST group change how you handle this?
It changes BAS reporting for the group, but each entity still needs its own books. We keep the accounting consolidation and the GST group structure aligned rather than merging them.
What if our entities are on different software?
We can work across Xero, MYOB and QuickBooks Online, though a shared platform makes consolidation faster and cheaper to maintain.
Is intercompany accounting priced per entity?
Yes. Each entity in the group is scoped separately based on its transaction volume, and the intercompany eliminations and reconciliations are quoted as an addition once we review how the entities interact.
What software do you use for intercompany eliminations?
Directly inside Xero, MYOB or QuickBooks Online where the group is small, or a connected consolidation tool for larger groups with several entities and currencies.
Can you keep books for a parent company and its subsidiaries?
Yes. We keep each entity's books separately and produce a consolidated set with intercompany balances eliminated.
What if our entities are on different accounting software?
We can work across software, though a shared platform makes consolidation faster and cheaper to maintain.
How do we get started with intercompany accounting?
Getting started with intercompany accounting begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
What if our records for intercompany accounting are not up to date?
If your records are behind, we scope a catch-up first so intercompany accounting starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
Related services
- BookkeepingMulti-currency bookkeepingBookkeeping for businesses that bill, pay or hold funds in more than one currency, with exchange gains and losses tracked separately from operating results.
- BookkeepingClass and location trackingTransactions tagged by class, location, property or department, so profit and loss can be sliced by the parts of the business that actually matter to you.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.