Account Reconciliations
Account reconciliation is a validation that the balance in the account is correct. Account balances are valid at a point in time, but business conditions keep changing. Companies face serious penalties for failing to reconcile.
What form does the validation take? Depends on the type of account. A senior accounting role ends up managing this process in Excel, most times the person is a CPA. Not a good use of their time!
Account Reconciliation is focused on the balance sheet, but it can be used for P&L Variance Analysis and Balance Sheet Variance Analysis, or even for alignment between the GL and Consolidation system, if required.
We have come up with a unique approach ensuring successful adoption of ARCS and addressing the challenges presented by this no. 1 Non-Data related challenge in the close process. We follow these steps which are keys to success
- Know your company’s expectations.
- Ensure that you understand the measures of success.
- Design the application to meet those expectations.
- Bank Accounts
- Intercompany Accounts
- Accounts Receivable
- Accounts Payable
- High Volume Accruals
- Banks: ATM / Fed Funds
- Retail: Store Deposits / Credit Card
- Insurance: Trade Settlement
