Financial Close Solutions: General Ledger

Key Benefits

  • Save time and resources by simplifying and streamlining the period-end process
  • Increase visibility to progress and issues through task management and analytics
  • Minimize need for direct supervisory intervention during the close process
  • Gain peace of mind with ReconArt’s detailed audit trail, which drastically simplifies both internal investigations and external audits.

 

Overview: Reconciling the General Ledger is the most important part of most companies’ period-end close. Large and complex General Ledgers can translate into a painful close process. Multiple sources of data, hundreds of accounts, and dozens of people with interdependent tasks can easily come into play. Performing the reconciliation of the General Ledger in ReconArt the process to be completed in a standardized and fully auditable way. Reconcilers are empowered to collaborate efficiently while managers have visibility of the process. With the ReconArt solution, General Ledger reconciliation becomes an organized, manageable process that is dependable, accurate and timely – not an act of hopeful heroics.

Purpose: Routine and periodic General Ledger reconciliation will ensure that all Accounts are accurate as reported and that the Ledger is in balance. It is a significant piece in understanding the financial posture of the organization. It is, therefore, important that the General Ledger reconciliation and financial close are accurate and timely.

Compliance: Publicly traded companies in the US are required to reconcile their General Ledger routinely as mandated by the Sarbanes-Oxley Act. Similar best practice guidelines for private companies exist, such as those recommended in the COSO framework. As pressure increases to regulate and promote transparency and accountability in financial reporting, adopting these activities has become a de facto best practice for many organizations.

 

Challenges:

  • Cross team coordination.  As the number of business users working on the General Ledger reconciliation increases, timely and efficient communication between these users often decreases.
  • Lack of insight.  Internal oversight of the General Ledger reconciliation is hindered by the dispersal of work over many users and departments. While   management typically gets involved at the end of the process to package the outcomes, they lack visibility of account statuses throughout the life of the close and lack insight to manage it and support the team. Analysis remains challenging after the close as well.  Consolidating information from several different places to obtain useable analytics is impractical and slow.
  • Accessibility.  External audits are problematic, requiring special efforts to arrange access.  This is compounded when the artifacts are spread across different systems or repositories.

 

Solution:

  • Cross team coordination. ReconArt consolidates the solution environment into a single platform, where users are enabled to closely collaborate on the General Ledger reconciliation. The configurable workflow, with up to seven levels of approval, allows for each stage of the process to be assigned to the right person and presenting supervisors with clarity and visibility to lend support where needed. GL balance data, as well as information added by users in their investigations is accessible at any time from any location, so reconciliations are easily verifiable.
  • Progress and Issue insight. Management can observe the period-end process within the ReconArt application. Detailed task management functions in the application allow managers and other high-level employees to see exactly what the reconciliation status is at any given time. Detailed analytics are provided for individual periods, as well as over time, allowing for constant evaluation of the process and providing opportunity for improvements and efficiencies.
  • Accessibility.  Auditors can be granted temporary read-only access to the application, and can see all information for the General Ledger reconciliation including historical data. Access can be arranged by the business user community without reliance on special resources to grant access.  The single, highly audited repository means the integrity of the process and findings are easily validated.

 

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Learn more about General Ledger reconciliation from ReconArt by contacting us today.

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