Ventana Research Analyst Perspectives

The Virtues of Automating Reconciliation

Posted by Robert Kugel on Mar 29, 2014 8:41:19 AM

Reconciling accounts at the end of a period is one of those mundane finance department tasks that are ripe for automation. Reconciliation is the process of comparing account data (at the balance or item level) that exists either in two accounting systems or in an accounting system and somewhere else (such as in a spreadsheet or on paper). The purpose of the reconciling process is to identify things that don’t match (as they must in double-entry bookkeeping systems) and then assess the nature and causes of the variances. This is followed by making adjustments or corrections to ensure that the information in a company’s books is accurate. Most of the time, reconciliation is a matter of good housekeeping. The process identifies errors and omissions in the accounting process, including invalid journal postings and duplicate accounting entries, so they can be corrected. Reconciliation also is an important line of defense against fraud, since inconsistencies may be a sign of such activity.

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Topics: automation, close, closing, Consolidation, Controller, effectiveness, process management, reconcile, Reconciliation, report, XBRL, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Accounting, CFO, Data, Document Management, Financial Performance Management, FPM

Using the Close as a Finance Department Diagnostic

Posted by Robert Kugel on Dec 7, 2012 11:12:57 AM

Earlier this year we published our Trends in Developing the Fast, Clean Close benchmark research findings. The most significant was that, on average, it takes longer for companies to close their books today than it did five years ago. In 2007, nearly half (47%) we closing their quarters within five or six days, but now only 38 percent can do it as quickly.

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Topics: close, closing, Consolidation, Controller, effectiveness, process management, report, XBRL, Business Performance, Financial Performance, Accounting, CFO, Data, Document Management, Financial Performance Management, FPM