Variance Analysis & Substantiation
- Get insight into differences between planned and actual account balances
- Get insight into differences comparing balances across periods
- Easily document differences along with their explanations
- Automate Certification of prescribed accounts falling within expected tolerance
- Establish best practices to manage risk and prompt business actions based on differences of concern
Overview: A quantitative approach to identifying differences in account activity is indeed possible and definitely recommended. Many organizations, however, lack the tools, insight, and support necessary adopt this best practice. ReconArt offers a comprehensive solution for Variance Analysis & Substantiation.
Purpose: Variance Analysis and Substantiation is a powerful part of the financial integrity portfolio. The ability to quantify and provide analysis in explanation of differences (expected vs. actual or period-over-period) is a very helpful tool. It helps highlight specific financial outcomes and offers opportunity to address the risk associated with any differences. These may be the result of errors, operational or system issues, delays, and fraud. ReconArt’s solution provides capabilities to address these needs, allowing easy adoption of the variance analysis best practice.
- Tool limits. Multiple tools may be involved in the process to help perform the quantitative review. Certain tools that support variance analysis are limited to comparing consecutive periods.
- Compiling data. Of course, the quantitative analysis relies on the availability of data. In the past this may have involved sourcing data from varied systems and applying manipulation to the data to support the analysis.
- Documenting differences. Documenting the final analysis in explanation of the differences may have been done without enforcing a specific process and without maintaining the result in a common, highly available repository.
- Weight of challenges. Often the weight of these challenges saw organizations fail to adopt the Variance Analysis process. While clearly desirable, it required a significant effort and may have been pushed back for lack of priority.
- Needed functionality. ReconArt is a comprehensive and consolidated tool supporting Variance Analysis & Substantiation. It allows for comparing data sets and differences between any periods. It also supports the quantification of differences between expected and actual balances (as with pre-paids).
- Data integrity. With ReconArt’s robust data on-boarding capabilities, it is easy to bring all of the necessary data into the environment and prepare it to support the analysis. Data is not manipulated by hand but acquired and transformed in a way that maintains its integrity.
- Peace of mind. With the ReconArt solution, analysis can easily be attached to accounts and will be held in the common repository.
- Best practice, right away. ReconArt’s Variance Analysis & Substantiation solution is packaged and ready to go. With ReconArt, the best practice is adoption-ready.