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02.01.2017
5 Reasons to Automate Reconciliations
Producing detailed accurate and consistent financial reconciliations can be a painstaking and somewhat tedious process. On all but the most simple of reconciliations the opportunity for error in a manual system is great. The opportunity for inconsistency both between reconciliations and different accounting periods is probably even greater. This puts a great deal of pressure on the account review and certification process. A process usually in the domain of the already over worked expert or experts in the reconciliation process. The result is almost always time consuming and sub optimal. This then begs the question why continue with a manual solution. The answer is usually time constraints. The period end close is almost always a hectic process even when everything runs smoothly. With modern solutions, however, they can be up and running and saving time in only a couple of days. Speed Modern solutions like Intelli-Rec can complete the data analysis, manual matching and reconciliation processes, that may take several people days or even weeks to complete, in a matter of minutes. The whole reconciliation process can be completed by one person with just a few clicks of a mouse. The data and MI from financial close becomes immediately available allowing othe financial processes to commence much earlier in the process lifecycle. Consistency Consistency comes from componenets such as built in workflow. From the capability to apply a wide selection of automated matching and reconciliation processes to each account. The production of financial data and trended management information in a consistent format based upon data that is subject to consistent processes and routines. Even the templates provided to create backup copies of the reconciliations in Excel lend themselves to concistent outputs. Accuracy Following automated consistent processes and routines minimises the potential for human error. The automated production of managment information from consistently produced data reduces the potential to produce incorrect financial values and analysis. The significant reduction in the time taken to produce reconciliations allows increased time for validation and certification of accounts. Analysis The production of timely and consistent financial data lends itself to the production of trended financial values. The use of RAG templates to identify what "good" looks like for accounts and for identifying the ageing of open items allows the identifcation of patterns in financial data and also underperforming accounts that require attention. Efficiency Perhaps the most compelling reason. Manual production of numbers from a vast array of financial data is, by its very nature, ineffective and inefficient. The application of automated matching and reconciliation routines removes a great deal of the manual effort. Automation can reduce the cost of the reconciliation process by 75% or more generating significant cost savings and allowing the focus of the finance team to be on the analysis rather than production of financial data
Business Management
Business Management, Automation and AI
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