Leading accounting organizations are turning to intelligent technology solutions to automate and optimize their processes. Automating the account reconciliation process enhances the control environment and frees up time to focus on the more complex, judgmental aspects of the financial close.
Here are the five biggest benefits that are gained from the right technology platform.
Efficiency & Standardization
Auto-reconciliation applies business rules to system-certify certain accounts when predetermined criteria are met. Reconciliation templates are automatically populated and items are also amortized automatically.
Standardizing the reconciliation process improves the quality and accuracy of financial data, reducing errors and inaccuracies. This saves a considerable amount of time and allows highly skilled accountants to focus on more difficult tasks, like analysis, risk mitigation, and exception handling.
Control & Compliance
Process automation is designed around controls that ensure key processes are secure, standardized, repeatable, and wherever possible, automated. This provides a reliable compliance framework for financial close activities, including journal entries, balance sheet account reconciliations, variance analysis, and transaction level reviews.
An account reconciliation solution dramatically reduces the risk of misstatement and minimizes potential control failures. The platform also provides a clear audit trail and ensures that segregation of duties is maintained.
The most significant impact is combatting the rising cost of compliance, with savings at all levels of the process.
Visibility & Transparency
When it comes to financial close processes, visibility is imperative—and also hard to come by. Piles of binders containing paper printouts, overflowing storage rooms, and shared drives can create confusion and lack transparency.
Sorting through paper printouts to find the required documentation during audit time can also consume more time than you even want to think about.
An account reconciliation solution removes the risk of the old world of paper-based, manual spreadsheets by maintaining proper segregation of duties, creating post-certification view-only records, automatically adding new ERP accounts, and gaining unprecedented visibility into accounting processes.
Manage Business Complexity
Account reconciliation software puts an end to all of that time spent tracking down individual spreadsheets or folders. Approvers and reviewers log into a single application to view their assigned reconciliations. All of the information and supporting documentation is in one place, and sign-off or follow-up is completed electronically.
Standardized reconciliation formats create consistency, email alerts can easily be sent from most systems, and comments become part of the reconciliation record. Preparers are free to focus their time on identifying errors, while approvers have more time to properly review and analyze accounts.
Streamlining Process Administration
With a manual process, someone is responsible for generating GL lists of accounts, following up on delinquent reconciliations, and making sure new accounts are assigned.
Data consolidation and built-in completeness checks cut time out of this process. Streamlining account reconciliations with technology helps ensure accurate and efficient accounting activities.
Ready to start your finance automation journey? Read this ebook to learn how to begin.