---
title: "Due-to and due-from balances that net to zero"
description: "Intercompany tie-outs and elimination support for multi-entity groups. Dedicated accountant, your software, month-to-month. Get a quote."
url: https://ledgerbpo.com/services/intercompany-reconciliation/
updated: 2026-09-11
publisher: LedgerBPO (SS Support Network LLC)
language: en-US
---

# Due-to and due-from balances that net to zero

LedgerBPO's intercompany reconciliation services tie the due-to and due-from balances between your related companies every month so they net to zero, then prepare the elimination entries for consolidation. A named dedicated accountant works inside your QuickBooks Online, Xero or Sage Intacct files, and a second reviewer signs off before the group numbers are released.

- Since 2020
- US · UK · CA · AU
- Named accountant plus backup
- Your software, no lock-in

[Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) In short

- Due-to and due-from balances agreed both ways, every month
- Elimination entries prepared for a clean consolidated view
- One named accountant across all your entities, in your software

Updated September 2026 · Reviewed by [Nimra Khalid](https://ledgerbpo.com/team/nimra-khalid/)

## What is intercompany reconciliation?

Intercompany reconciliation confirms that what one company in a group records as owed to or from another company is exactly what the other company records, then resolves any difference. Once the balances agree, the intercompany transactions are eliminated so consolidated statements show only dealings with outside parties. It is a monthly control for any multi-entity business.

## Who it is for

### Owners with several entities

You run an operating company, a property company and maybe a holding company. Money moves between them constantly and nobody is sure who owes whom. You want it settled every month.

### Franchisees and multi-location groups

Each location is its own entity, and shared payroll, rent and supplies are paid centrally and recharged. You need the recharges booked on both sides and the group view to make sense.

### Finance managers preparing consolidations

You produce group accounts for a lender or investor and spend the first week of every month chasing intercompany differences. You want them cleared before the close starts.

## What's included

- Monthly due-to and due-from tie-out for every entity pair
- Intercompany matrix showing each balance from both sides
- Mismatches traced to the missing or mis-posted entry and corrected
- Shared cost recharges booked on both sides in the same period
- Management fees, rent and interest between entities posted on schedule
- Intercompany loan agreements tracked with interest accruals
- Foreign-currency intercompany balances revalued at period end
- Elimination entries prepared for consolidation
- Consolidation workpaper agreed to each entity trial balance
- Settlement schedule showing which balances should be paid or netted
- Year-end intercompany confirmation package for your tax preparer

## Deliverables and KPIs

| Deliverable | KPI we report | Cadence |
| --- | --- | --- |
| Intercompany matrix | Every entity pair nets to zero after agreed timing items | Monthly |
| Mismatch log | No unresolved intercompany difference older than one period | Monthly |
| Elimination entries | Eliminations prepared and agreed to the intercompany matrix | Monthly |
| Recharge and management fee schedule | Every recharge booked in both entities in the same period | Monthly |
| Settlement schedule | Balances to be settled or netted listed with amounts for your approval | Monthly |
| Reviewer sign-off | Team lead signs the matrix and eliminations under Two-Tier Review | Monthly |

KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.

## How it works

1. ### Discovery call
We map your entities, ownership, the software each one runs on, and the transactions that flow between them: loans, recharges, management fees, shared payroll and rent.
2. ### Access and baseline matrix
You grant accountant access to every entity file. We build the first intercompany matrix, list every mismatch with its cause, and agree a recharge policy and posting calendar with you.
3. ### Dedicated accountant assigned
A named accountant, a trained backup and a team lead take on all entities. Historical differences are cleared with your approval and the elimination templates are built.
4. ### Monthly tie-out and consolidation
Each month the accountant posts recharges, ties every pair, prepares eliminations, the team lead reviews under Two-Tier Review, and the consolidation workpaper goes to LedgerDesk.

Our CloseTrack process

Intercompany tie-out is a fixed early step on our CloseTrack checklist, because no entity closes until its counterparties agree. The matrix, the mismatch log and the elimination sign-off are visible to you in the LedgerDesk client portal.

## Software we work in

- [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/)
- [Xero](https://ledgerbpo.com/software/xero/)
- [Sage Intacct](https://ledgerbpo.com/software/sage-intacct/)
- [NetSuite](https://ledgerbpo.com/software/netsuite/)
- [Zoho Books](https://ledgerbpo.com/software/zoho-books/)
- [Sage 50](https://ledgerbpo.com/software/sage-50/)
- [Fathom](https://ledgerbpo.com/software/fathom/)
- [All 50 platforms](https://ledgerbpo.com/software/)

## How much does intercompany reconciliation cost?

Intercompany reconciliation is priced as a flat monthly fee based on the number of entities, the number of entity pairs with activity, and whether you need eliminations and a consolidation workpaper. It is often bundled with our multi-entity bookkeeping service. Pricing depends on volume and scope, so we send a custom quote within 1 business day.

### What moves the quote

- Number of entities and entity pairs with monthly activity
- Whether entities run on the same or different accounting platforms
- Currencies involved and any revaluation needed
- Whether eliminations and a consolidation workpaper are required

### Market benchmarks

| Market | Typical range | Source |
| --- | --- | --- |
| US | Multi-entity outsourced accounting sits at the upper end of the $150 to $1,600 per month bookkeeping range; Pilot, for example, lists $499 to $989 per month depending on revenue | indinero, RadCity (2026) |
| UK | Fixed fees £100 to £1,500 per month per entity band; hourly £20 to £55 | UK provider pricing surveys (2026) |
| Canada | C$300 to C$2,000 per month; group work priced per entity | Outsource Bookkeeping CA, TheAccTaxCo (2026) |
| Australia | Fixed A$300 to A$1,500 per month per entity band | Australian bookkeeping fee surveys (2026) |

Third-party ranges for orientation, not our prices.

[Get a custom quote](https://ledgerbpo.com/get-a-quote/) No setup fee. Month-to-month.

## Intercompany reconciliation for your industry

- [Franchise owners](https://ledgerbpo.com/industries/franchises/)
- [Property management companies](https://ledgerbpo.com/industries/property-management/)
- [Construction companies & contractors](https://ledgerbpo.com/industries/construction/)
- [Real estate agents & brokerages](https://ledgerbpo.com/industries/real-estate-agents/)
- [Trucking & logistics companies](https://ledgerbpo.com/industries/trucking/)
- [Restaurants & hospitality](https://ledgerbpo.com/industries/restaurants/)
- [All 26 industries](https://ledgerbpo.com/industries/)

## Security and compliance

- Accountant-role access to each entity file; you own every subscription
- MFA on every login with one access log covering all entities
- Settlements between entities are approved and released only by you

Full control list on the [security page](https://ledgerbpo.com/security/) and country rules on the [compliance page](https://ledgerbpo.com/compliance/). Certifications are listed only when held.

## Frequently asked questions

### How much do intercompany reconciliation services cost?

Pricing depends on volume and scope, and we send a custom quote within 1 business day. As a market reference, multi-entity outsourced accounting sits at the upper end of the US bookkeeping range of $150 to $1,600 per month, and Pilot lists $499 to $989 per month by revenue band (indinero, RadCity, 2026). Our quote is driven by the number of entities and active entity pairs.

### Why do my intercompany balances never agree?

Usually because a transaction is booked in one entity but not the other, or in different periods, or at different amounts. Common examples are a transfer recorded as revenue on one side, a recharge invoice raised but never entered by the paying entity, and interest accrued in one set of books only. The monthly matrix surfaces each of these so they are fixed at source.

### Can you work across QuickBooks Online, Xero and Sage Intacct at once?

Yes. Many groups have entities on different platforms, often because they were set up at different times. We reconcile inside each file and build the matrix and consolidation workpaper outside them. Where you use QuickBooks Online Advanced, Sage Intacct or NetSuite consolidation features, we use those instead of a spreadsheet.

### Do you prepare the consolidated financial statements?

We prepare the consolidation workpaper: each entity's trial balance, the eliminations and the consolidated trial balance that results. Our financial reporting service turns that into a consolidated P&L and balance sheet each month. Statutory group accounts, where your country requires them, are prepared by your accountant from our workpaper.

### How do you handle management fees and shared cost recharges?

We agree a recharge policy with you at the start: what is recharged, on what basis, at what markup if any, and on what date each month. The accountant then raises and posts the recharges on both sides in the same period. Transfer pricing and tax questions on those charges go to your accountant; we book what they and you approve.

### Can you settle the balances between my companies?

We prepare the settlement schedule showing which balances should be paid or netted and in which direction. You approve and release every transfer from your own banking; we never move money. Once the transfer clears, we match it in both entities so the balance closes cleanly.

### What about intercompany loans and interest?

Each intercompany loan is set up with its agreement, rate and repayment terms, and interest is accrued monthly on both sides. The loan balance is agreed between the entities as part of the matrix. If a loan is in a different currency from one entity's books, it is revalued at period end and the difference posted to exchange gain or loss.

### What will my tax preparer receive at year-end?

A year-end intercompany package: the final matrix with every pair agreed, the full-year elimination entries, the loan and interest schedules, and a recharge summary by entity. It sits with the year-end close package for each company so the preparer can see both the standalone and group positions without asking for more.

Talk to a person

A 20-minute call with someone who runs intercompany reconciliation every day. No sales script.

[Book a 20-minute call](https://ledgerbpo.com/book-a-call/) [Get a custom quote](https://ledgerbpo.com/get-a-quote/) Compliance note

You approve and release every payment. We never move money, sign returns or give audit opinions. [Country rules](https://ledgerbpo.com/compliance/).

Next step

## Books closed. Invoices paid. Every month.

Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close.

- Reply from a named person within 1 business day
- No setup fee, month-to-month
- Your software, your data, no lock-in

Start with a custom quote

[Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours.

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Source: https://ledgerbpo.com/services/intercompany-reconciliation/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt