Period-End Close & Balance Sheet Reconciliation
- Automation of period-end reconciliations and balance sheet reconciliation preparation
- Full audit trail for tracking and substantiation
- Multi-stage approval workflow for quality and accountability in the organization
- Enhanced financial control in one consolidated tool environment and tool set
Overview: ReconArt provides a readily configurable workflow to ensure quality, accountability and timeliness of reporting of the financial close at period-end. Accurate and timely balance sheet reconciliation reporting is critical to properly represent the organization’s true financial posture to both internal and external stakeholders. Automating this process – which has historically been challenged by a high degree of manual work/volume of detail and a low level of coordination – offers a true step-change by greatly enhancing control and efficiency at period-end.
Purpose: There are many detailed facets related to balance sheet account reconciliation, such as accurate account balances, calculated assets, shareholder equity and outstanding liabilities. Automating the substantiation, review, and approval of this information in a fully auditable environment adds a new level of control and sustainability. The work and task allocation leveraged by the ReconArt solution allows the team to focus on investigations, resolutions, reporting and advisements – versus simply compiling lists of financial data.
Compliance: Best practice and external compliance dictates the adoption of routine reconciliation and account preparation. COSO (Committee of Sponsoring Organizations of the Treadway Commission) suggests steps for tight controls on the reconciliation and account certification process through the entire organization. Public companies and those adhering to public-like practices are bound by SOX mandates for period and balance sheet reconciliation reporting and documented accountability. More and more private entities are adopting these practices today in order to enhance control and show a commitment to financial integrity.
- Preparing and reviewing balance information, which may be sourced from multiple contributing financial control systems, is time consuming and error-prone due to large volumes of manual input. With a spreadsheet or paper-based process, the duty of gathering all the needed data becomes unwieldy and unsustainable, especially in the face of growth.
- With a large or distributed work force, tracking what had been done and by whom can be impossible. Compounded with manual entry this can break down the financial close process and cause delays, which negatively impact related operations relying on a timely month or period-end. Work allocation, work insight and collaboration are all difficult under these circumstances.
- It is difficult to audit the preparation and approval of certified accounts. When discrepancies are found, a wide-range of explanations exist ranging from simple manual error to fraud. In all cases, the discrepancies affect the accuracy and surety of the accounting.
- Using a single tool to reconcile all accounts and substantiate your balance sheet will reduce time and potential input errors. ReconArt provides a 100% web based and automated workflow. Balances from the account matching process can flow into your period close without any manual intervention for immediate confirmation and approval.
- ReconArt provides a comprehensive audit trail to track and report on all aspects of the preparation process. With the provided solution tools, you can not only view activity at a very granular level but also add notes and files to transactions, balances and accounts to help with justification and substantiation. This adds detailed validation documentation to support an accurate and actionable balance sheet.
- The ReconArt balance sheet reconciliation solution allows for clear insight into work progress and documented accountability. We provide multiple levels of approval that offer consistency, adherence to policy and accountability through the entire organization. Problems and inaccuracies can be caught early and fixed before they can skew reporting of the balance sheet.