Cost and process efficiencies remain top priorities for thefinance function, but some organizations are passing up theopportunity to gain better control of companywide cash throughin-house banking. IHB can help companies of all sizes improveprocess efficiency, reduce costs, and realize greater control overtheir cash. Still, there's a great deal of resistance to in-housebanking within some organizations, typically stemming from concernsabout regulations, controls, and restrictions on intercompanyrelationships intended to block tax dodging.

It's true that IHBs require extensive supporting documentation,as well as proof that relationships between affiliated entities areappropriately arm's-length (e.g., appropriate interest rates onloans) to achieve regulatory compliance. Essentially, companiesmust take steps to prove that they aren't using in-house banking toavoid taxes in the jurisdictions where they have operations. Whenthey take these steps, the benefits are typically well worth theeffort.

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