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.

What is Intrachain?

Intrachain is the world's first process mining software with integrated blockchain.Compatible with all IT infrastructures, Intrachain centralises and streamlines your intercompany accounting, reducing your costs and increasing productivity.

Problems

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.

The aforementioned problems that every corporation faces today are: Inefficiency, human error, and inaccurate data.

• Inefficiency

Firstly, in today’s business world, 90% of companies manually reconcile using MS Excel spreadsheets, a technique that is considered highly inefficient.

• Human error

The next problem companies face, is human error. Manual reconciliation is a technique that has also proven to be prone to human error. As management calls for faster closure, finance teams are facing a trade-off between speed and accuracy, leading to accounting errors and certain open or unreconciled items being carried forward.

• Inaccurate data

Finally, subsidiaries and business divisions are often separate legal entities operating with a high degree of autonomy across dispersed geographies, sometimes operating in multiple currencies, in different time-zones, and using different accounting systems.Insufficient Intercompany Accounting (ICA) practices can have financial costs due to inaccurate reporting, or because strategic or operational decisions were based on inaccurate data.

The Solution

After having revealed the probelms which — without exception — every firm faces, let me now explain how Intrachain will revolutionize intercompany accounting.

To solve the aformentioned problems, 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.

Intrachain’s process mining engine is thereby collecting all needed data and transactions at its source from the operative provider IT system of the customer. Then, the relevant data are transformed automatically into smart contracts on the blockchain. In a next step, these smart contracts are executing account keeping, booking and payments via the Intrachain Token.

Project and its features

They have searched and found one technological solution that – starting with the primary data - allows us to create automatic transactions on every stage of the business process.

• Automated

The Intrachain system is designed to perform automated accounting transactions at all stages of the business process, starting with input of user data and ending with consistent data in the accounting systems of several subsidiaries. The automated processing of these data and their reconciliation happens real-time

• Offers smart contract functions

To fulfill obligations at stated within a contract, Intrachain offers a reliable tool in the form of smart contracts. This electronic form of meeting the terms of the agreement signed between two parties has the advantages to ensure the reliable performance of pre-agreed terms.

• Avoids tampering

Guaranteeing that the information between the companies stays secure and cannot be ma- nipulated at all stages of the process is extremely important for the execution of services and the establishment of trust between the counterparties. An information system that op- erates on the basis of the non-manipulable data storage of the blockchain removes the possibility of a modification of the data or an error, which increases confidence and reduces execution costs of the contract.

• Keeps data traceable

With a complex structure of contracts both within the group of companies and between companies, it is extremely important to have a simple mechanism for monitoring the perfor- mance of contractual obligations in the chain of obligations. The Intrachain system, which uses smart contracts, allows implementing such a mechanism that offers the possibility to trace the entire path of data and financial information through a chain of contracts.

• Enables decentral saving for multi legal entity access

Intrachain provides companies with a distributed storage of transaction data with equivalent access for each of the involved companies. Technically, data of all transactions are stored on each node of Eth, but each company only has access to data on its own contracts.

• Compatible with different ERP systems

Intrachain adds a software API to its own work procedures, such as billing, payment, or rec- onciliation of data in the contract. Intrachain’s API can be integrated with any ERP system by creating a software adapter that acts as an interpreter with the Intrachain API in the ERP system.

• Low transaction costs

Intrachain achieves cost reductions due to several technical factors:

The first factor is the reduction of labor costs (compared to the traditional interaction of financial systems compa- nies), since manually entering data into various systems – the project management system, ERP system, or accounting system – becomes obsolete for each party of the contract.

The second factor is the automated processing of reconciling accounting documents in the contract. As of today, this procedure still takes a lot of time. With the use of blockchain, this procedure can be performed automatically and therefore faster.

As a third factor, costs of data loss or intentional data changes are reduced. In traditional systems, system administrators spend a high amount of time and effort to find errors or recover lost data. With Intrachain, risk of loss or deliberate modification of the data is practi- cally absent.

Token Info

Intrachain will use an Intrachain Utility Token (IUT) that represents ac cess to the Intrachain eco-system. The Intrachain Token IT operates in a private blockchain to run transactions within the Intrachain eco-system. This kind of smart contract is made per customer interac- tion.

Intrachain mainly operates with two types of smart contracts. The first type works in a pub- lic Ethereum blockchain to operate with an IUT public token (Intrachain Smart Contract). This type of contracts describe how to buy, sell and convert IUTs into private tokens.The second type (Intrachain Private Smart Contract) works in a private blockchain to run transactions within the Intrachain eco-system with a private token that is equal to the pub- lic IUT. This kind of smart contract is made per customer interaction.

The owner of public IUTs can become an Intrachain client by signing a contract. As soon as the new client wants to use the service, a pair of smart contracts is created. One for the public Ethereum blockchain and one for the private blockchain correspondingly. Intrachain clients use the public smart contract to prepay the usage of Intrachain. IUTs transferred to the client’s public smart contract are processed and converted into private tokens. Intrachain clients will use their private IUTs to pay for their transactions. All trans- actions are made via the private blockchain and each transaction can have (or not have) an additional fee for the Intrachain team and miners in private coins.

Meet the Founding Team

Meet the Core Team

Meet Advisors

SUMMARY

The decentralized solution of the Intrachain Platform (DApp) offers great advantages for both applications: In comparison to standard servers, it provides significantly more security when storing data, and it is based on the customer’s wish to maintain data transparency and to prevent data manipulation. The goal is to make effort allocation more efficient, to help individuals and businesses save money, and provide them with the data quality needed to make informed decisions.

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And you, my dear reader, I suggest you go for further review on the official website of the project and its media resources. All the necessary links you will find below:

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