- Evaluate key period-end balances against previous periods
- Set acceptable threshold amounts or percentages to flag larger variances
- Assign analysts and approvers to collaborate on explaining fluctuations
- Ensure variances are fully documented and analyzed
- Provide auditors access to detailed info on balance fluctuations
Variance Analysis, as a quantitative approach of identifying deviations in business performance from defined standards, can be a powerful management tool. This ReconArt functionality allows teams to analyze differences in account activities, uncover the patterns of deviations, facilitate performance measurement and improve control. The monitoring automation of account activities and their fluctuations over any selected time period can become a significant component of continuous accounting methods.
Through process automation, accounting and controlling teams can focus on identifying, investigating and mitigating the uncovered risks. Being able to analyze the differences between expected and actual balances while the reconciliation activities are in progress, not only saves time, but allows flags to be raised at the right moment. Functionalities as setting thresholds and collaborating with workflow approvers to substantiate differences, act as a control point that facilitates compliance and audit readiness.
Connect Your data with Your decisions:
ReconArt integrates your reconciliation data in one place and allows for its use across Reconciliation, Exception Management, Journaling, Period End, Variance Analysis and Certification. Financial Management best practices state that Variance Analysis should be completed across all desired accounts prior to period-end close and certainly prior to reconciliation sign-off. This allows decision makers to make key adjustments and align business strategies.
- Compiling data from various sources and systems with need of manual manipulations before analysis can be performed
- Involvement of different tools with limited capabilities in the variance analyses process (for example comparing only consecutive periods)
- Documenting the differences in one repository that is easily accessed by both business teams and auditors, if needed
- Integration of the analysis results in the decision making process