Journal Entry Reconciliations

Key Benefits

  • Create and approve journal entries based on a predefined approval workflow and user specific approval thresholds
  • Easily manage journal entry approvals based on transaction codes and user roles to suit your environment
  • Standardize the journal entry process across the company
  • Enhance the control, flexibility, security and auditability around posting entries to the General Ledger or any other system of choice

 

Overview: Posting journal entries is an essential component of financial integrity and control – yet most ERPs lack the functionality needed to address this process. A truly standardized and auditable journal entry process should have a clear, easily manageable approval workflow with corresponding approval limits that reflect the organization’s requirements. The ReconArt solution is engineered to provide the control and flexibility required of these demands.

Purpose: Because journal entries reflect financial transactions, they provide essential information for core financial reports. A reliable journal entry process eliminates the possibility of input errors, fraud, unnecessary posting delays, and other instances that potentially carry financial risk. ReconArt’s Journals module is designed to allow you to adhere to all essential compliance regulations and best practices in terms of financial control with and out-of-the-box solution.

Compliance: COSO (Committee of Sponsoring Organizations of the Treadway Commission) advocates steps for tight controls on the reconciliation and account certification process through the entire organization. The Sarbanes-Oxley Act of 2002 mandates all account be certified in a timely manner for all public corporations. The right process and set of tools are required to adhere to these regulatory needs.

 

Challenges:

  • Lack of a reliable existing process. In many of today’s ERPs there is a functional gap: there is no solid, flexible, sufficient control of who has the ability to create and approve journal entries. Fully manual environments present other challenges with unclear preparation requirements and time consuming approvals in a ‘workflow’ that is neither standardized nor secure. In either scenario, creating and approving journal entries is problematic.
  • Financial risk. The lack of a reliable journal entry process translates directly into poor financial control. Whether in the form of a missing entry, a wrong entry into a wrong account, a fraudulent entry with no accountability, or a severely delayed entry, there is too much room for error and risk.
  • Difficult collaboration. In larger companies especially, the process becomes even more complicated when many employees are working on preparing journal entries with only a small number of approvers having the ability to actually post them. Errors, delays, and format inconsistencies might require significant and inefficient back and forth – often by email.

 

The Solution:

  • Set a foundation for this important process. ReconArt empowers the organization with a flexible journal entry creation, control and approval mechanism. The easily manageable and configurable workflow is based on approval limits that reflect the levels of responsibility needed to approve entries of varying amounts. This can be applied to both transactions from the reconciliation process and transactions imported directly into the Journals module for the sole purpose of being controlled by ReconArt’s workflow.
  • Financial control. ReconArt’s Journals functionality immediately enhances your financial control by providing you with the streamlined workflow, clear accountability, and associated managerial visibility. Both journal entry and account certification processes will now be done within the same tool – so once a problem in an account is fully documented a correction can be initiated, kicking off a predefined, fully configurable workflow to post a journal entry to the general ledger automatically.
  • Empower your team to collaborate. Regardless of the size and complexity of your operation, ReconArt’s fully configurable workflow can push your journal entry posting through a multi-level approval process.  Access to accounts can be tightly monitored through our built-in, robust rights management system.  Double and triple checks of the information is possible by rolling all the entries to the general ledger up to a high level approver before posting them to the accounting system.

 

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