Your finance department in good shape? You will need an account reconciliation Health Check

As CFO may not be fully aware, but your financial department can also be part of the overwhelming majority who hides an illness. The question you need to raise your in fighting shape? Account reconciliation process A medical examination will dramatically improve the alignment process your finances and provide additional value and help lower costs. In accordance with a recent study of finance, only 8% of workers in financial accounting really satisfied with their monthly closing process. This means that a large 92% of the financing of the employees think it's time to see a doctor of their financial close process is called sick. The easiest way to help identify any problems within the Ministry of Finance to implement. Undergo a medical examination of reconciliation There are three main benefits of a strategy for effective reconciliation bills to be considered: the reduction of operational costs, risk and compliance tight feasible. Each method of reconciliation of accounts should be a clear visibility of financial information to these benefits - although still in line with a recent financial survey, only 8% of senior finance executives satisfied with the visibility of key financial information. Stages of reconciliation lifecycle There are four main steps to reconciliation lifecycle: 1. data import and enrichment. 2. Matching. 3. Exception Handling. 4. Reconciliation. To get the full benefits of the process of reconciliation of accounts each step to produce, in good health, but optimized for robust and agile standardized by your company. However, can 46% of the employees in the financial world using a shared solution to a list of all their data, computing books, reaching the level of the standard reconciliation takes to be a great reconciliation process a challenge indeed. Checking the health of each step A health check every stage of your life cycle of reconciliation would be a big challenge. You must have an honest assessment of your department is currently located and where you want to be. 1. Import and enrichment - This initiative is essential in normalizing your data. Enrich your knowledge on imports is much more effective than doing ad-hoc, reducing the price of your reconciliation process and the risk of errors in the future. Health risks: data import and enrichment method would be disappointed by the use of spreadsheets - so if you still use them as an accounting solution, stop! They offer unsecured or after the separation of duties, no automatic enrichment and they do not meet the first account. Not to mention the potential problems arising from share-sharing spreadsheets spreadsheet finances is extremely risky especially when it comes to the health of your reconciliation. It is not always possible to inform the spreadsheet, their changes are documented and identify any mistakes made you. Despite this risk, more than half of all ministries of finance always share financial spreadsheets to organize. Their reconciliation Recipe specialized accounting software is much faster, more accurate and makes the breach of warranty - pay for themselves in reducing the cost of your department. 2. Cards - a clutch of financial data is the heart of your reconciliation process and also the one that consumes the most time. Although relatively simple, the task is terribly common for all accounting staff. Health Hazards: Its very nature means that manual data matching will prove to be the most error-prone stage of the method of reconciliation. As long as a quarter of employees in the financial world have no approver or second instance, this could mean that the errors are not detected before. Submission to the Recipe: automated transactions and data matching software solutions cut about 98% of the labor used to minimize errors. An improved automated software solution can still improve the life cycle of reconciliation ahead for you and make sure that there is always a second before the authorities can be signed-off. 3. Exception Handling - to make the most effective use of your time would you be able to prioritize exceptions unmatched in your books. Health risks: while processing exceptions operational costs, sloppy budgets, data entry errors and the increased activities of the management team should decrease means that the costs are rising much higher. This can be somewhat alleviated by a less centralized approach, so that address to add later. Instead of an additional method workers exceptions to the source Recipe: approximation of automated software accounts can be adapted to exceptions, which can help the time, cost and error rate significantly reduce processing. 4. Reconciliation - the part where you have to play detective. Why not these amounts are: It may or an error, inadequate or even fraud not? Reconcile the figures correspond offers employees financial information much more to get their teeth but the method remains vulnerable to health problems. Health risks: one of the biggest health risks of reconciliation is to archive excessive reliance on paper. When one objects, it is usually necessary to close all previous monthly reports and general ledger entries and bank statements. However, 64% of workers in the financing is still at least one way or another depending on the binders and paper archives close financial results. Recipe: besides the fact that financial data secure, digital archives also much easier to look through paper required for archived information. Listened to the reconciliation process faster, easier, more than you help create. Consistent with things like e-discovery requests financial records Overall, the reconciliation of the life cycle is an important method for the Ministry of Finance, but for many people there is still a considerable number of improvements needed to run number. Health risks exposed to the statement of your financial department, issues of governance, risk and compliance and threats to your financial future are everywhere. It is necessary for CFOs and financial managers to ensure that their reconciliation is very healthy. A reconciliation of sound financing helps to keep the data up-to-date and correct ledger by comparing the mentioned in the subsidiary ledger for each account. Maladjustment lead to cancer late penalties, the unnoticed obligations and discounts missed suppliers. For these reasons, any finance department a daily monitoring self-examination, inner or often. However, if you are looking for the magic pill that will relieve your pain then you should take a look at a package of reconciliation reinforced take balance. This type of accounting and reporting software automates giant pieces of the life cycle of reconciliation, offering multiple orders quickly.