As the push to expand medium- and enterprise-level businesses continues, the financial close process can appear to slow down and even become a hassle in industries of rapid growth. Typically, these close tasks are performed manually using Excel spreadsheets and other systems that do not progress along with the business. Accountants experience the pressure of need for speed and accuracy, which is a challenge for any human to meet.
Leave behind the late nights of reconciling, balancing, and searching for discrepancies by taking advantage of an Oracle technology backed by both research and practice.
Using financial close software such as Oracle’s Account Reconciliation Cloud Service (ARCS) can not only automate and improve the practice but also ensure efficiency and accuracy throughout the entire reconciliation process.
Below are some tips to keep in mind that will improve account reconciliation:
- Automate, Automate, Automate
Oftentimes, the account reconciliation process involves several steps that require accountants to confirm and validate financial information. Doing this as a manual process requires considerable resources and time while delaying the financial-reporting process. Automated workflows eliminate simple human error and keep all key players in the financial process notified from beginning to end. Organizations that choose to take advantage of Oracle’s flexible, cloud-based solution will not have to worry about delay in financial close, will experience improvements in financial staff efficiencies, and will reduce the number of accounts to reconcile without compromising accuracy. Companies will experience improved productivity with workflow through monitoring, reporting, and analysis in an automated system.
- Leverage the Oracle Cloud
Oracle’s Account Reconciliation Cloud Service is the best cloud application in this space! Transaction Matching is the latest addition to Oracle’s comprehensive Account Reconciliation Cloud Service and the perfect complement to the existing Reconciliation Compliance feature set. With Transaction Matching, companies can automate performance of high volume/labor intensive reconciliations and seamlessly integrate those results into the tracking features within Reconciliation Compliance. With the addition of this powerful new module, companies will save additional time on performance of reconciliations while improving quality and reducing risk.
- Stick to Accounting Policies and Procedures
The best way to ensure efficiency and security throughout the reconciliation process is to hold all accountants to a standard set of policies and procedures. Consider implementing a web-based source to make policies easily accessible and connect directly to account reconciliations. Having such information readily available guarantees the various financial players are aware of and will follow the policies and procedures set in place. Through this practice, review and audit of account reconciliation becomes easier than expected.
- Avoid Excel Spreadsheets
While Microsoft Excel has been used for many years to analyze and reconcile financial data, this practice contains a dangerous risk for accuracy—human error. One small mistake during the process can have a domino effect for the steps that follow, putting the integrity of the company’s financial statements and forecasts at risk. Such mistakes are often caused by data entry issues or the software’s built-in formulas which makes them difficult to find. Spreadsheets are not linked to the general ledger system, and therefore any changes made after the completion of reconciliation will make the reconciliation invalid. Leave Excel behind and notice a change in the accuracy, reliability, and security Oracle’s Account Reconciliation Cloud Service can provide.
- Use Standardized Templates
Guarantee consistency and ease of use by taking advantage of standardized templates for different types of reconciliations. Oracle’s ARCS offers pre-built formats that are key components of the reconciliation process. These dashboards offer information such as monitoring status, aging, performance metrics, and compliance metrics. Checklists included on the templates enhance comprehensiveness, completeness, and correctness. Companies that choose these templates will shrink the time it takes to run the financial close process and may even find the process enjoyable to complete.
Contact AdvancedEPM Consulting today to learn more. www.advancedepm.com