Simplify Account Reconciliations
The balance sheet reconciliation is the workhorse of the month-end close. It is one of the most important activities, but receives very little attention and recognition. A common misconception is that reconciling accounts is an easy and basic activity, when they’re anything but.
And here is a little secret: Most organizations are committing one or more of the following account reconciliation faux pas each month:
- Replicating the general ledger transactional detail in Excel.
- Reconciling to the wrong GL balance.
- Insufficient supporting detail attached to the reconciliation.
- Segregation of duties violation. The reconciler of the account is also allowed to post journal entries to the account.
- Untimely preparation.
- Lack of thorough review.
- Reconciling too many or too few accounts each month.
- Allowing reconciling items to age over 90 days
- The presence of long standing “mysterious” variances that can’t be explained.
There’s no one to blame for this. When butted up against closing deadlines and limited resources, the amount of labor required to complete reconciliations via spreadsheets, checklists and paper means that most accounting teams can only manage to maintain the process “as-is.” There certainly isn’t enough bandwidth to timely investigate issues and optimize the reconciliation process. Without proper tools, it’s insanely difficult for accounting managers to enforce quality without compromising efficiency once the organization grows beyond a certain point.
Account Reconciliation Automation
This is where ART can help. ART helps the accounting department eliminate up to 30% of the total reconciliation volume each month, automate cover sheets and other labor-intensive administration so that accountants can win back their time and their sanity.
And SkyStem's ART can do even more. Real-time monitoring, insight and reporting gives bosses like you tools that were never available before, allowing you to see more and do more, without burdening the staff with your pesky status requests. (Just kidding, your status requests are never pesky!)
Check us out by booking a demo today.
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