Document background
An Intercompany Balance Confirmation Letter is a crucial financial document used to verify and confirm financial positions between related companies within a corporate group. This document is particularly important in the Belgian legal context, where strict accounting and corporate law requirements govern intercompany relationships. It serves multiple purposes: ensuring accuracy in financial reporting, supporting audit processes, maintaining compliance with Belgian accounting standards, and providing documentary evidence for tax authorities. The letter typically includes detailed balance information, transaction summaries, and reconciliation statements, making it essential for period-end closing procedures and annual financial statements. It's commonly used during monthly or annual closing cycles, during audit preparations, or when specific verification of intercompany positions is required for corporate restructuring or regulatory reporting.
