Account Reconciliation is a key control step to ensure the completeness and accuracy of all financial statements.
It should be a straightforward part of your close, but that is not always the case. With a manual process, discrepancies may occur when reconciling. These can be caused by a variety of factors including timing differences, missing transactions, or mistakes down to human error.
In a single company, whilst there is risk, it can be managed when the accounts reconciliation process is at arm’s length. But what about a global group with different accounting practices, different cultures and different ERP solutions in the mix? All you can see is risk.
So how do you mitigate that risk? Just as a financial consolidation solution brings the books of all the companies in a group into one central place, there is software that does the same for critical bank and balance sheet account reconciliations. Imagine being able to review all key account reconciliations in one group, in one place. Aside from risk mitigation, it means the CFO gets to sleep at night and simplifies the Group audit. Imagine further that this account reconciliation software is on the same platform as your consolidation and planning solution.
An advanced Account Reconciliation solution will help you address several challenges. For a start, it will remove manual, labour-intensive activity. For many, account reconciliation is also steeped in errors due to factors such as decentralised data, segregation of duties, incorrect postings, and a lack of control. There are often time pressures involved in the account reconciliation process which adds a further vulnerability.
Key Features
An advanced solution takes away these challenges due to the incorporation of several features. Below we list some of these key features to look for:
- Instant transparency into the state of the close – This is something that you should be able to view as and when you wish
- Real-time view – This gives contributors an idea of what has been completed and what still needs to be reconciled
- Approval Workflow – Assign responsibility and steps for multiple contributors
- Separates duties and enforces signoffs – Ensure no account goes unvetted or unapproved
- Risk Rules – Rules that can alter the workflow to ensure higher risk accounts have a risk rating and therefore require greater levels of approval
- Carry Forward Rules – Accelerate the process by rolling over the open items from previous reconciliations
- Intercompany Matching – The recording of transactions between affiliated companies where they are matched between reporting units
- Reporting Capabilities – The generation of audit reports automatically
- Process Monitoring – Monitor your exposure and check the status of the reconciliation process: reconciled, reviewed and approved, late and work-in-progress
- Email Notifications – Reminders for upcoming due dates and tasks status changes will be emailed to the assigned user
- Provide Notes, Comments, and Attachments – Attach reconciliation proof and confirm the accuracy of all essential account trial balances
CCH Tagetik
One of HAYNE’s trusted vendors, CCH Tagetik, offer Account Reconciliation as part of their CPM solution.
CCH Tagetik Account Reconciliation creates consistency across all accounts by harmonising data company-wide and standardising methodologies.
Their Account Reconciliation solution can be quickly implemented to help accelerate your close. This allows Close & Consolidation, Planning, Reporting and Disclosure to be unified into one solution.
HAYNE Solutions
HAYNE has worked closely with CCH Tagetik for many years as an implementation partner. We specialise in the full Tagetik suite and will support you with the planning, training, and implementation of your CCH Tagetik solution. Our team consist of several qualified accountants who specialise in the full Tagetik suite. We work with companies of all sizes and industries to develop and implement a compliant, robust, time-efficient, and effective solutions.
HAYNE is a lifecycle partner for all your Corporate & Financial Performance Management needs including Close & Consolidation, Budgeting, Planning, Account Reconciliation, Disclosure Management, IFRS 16, and Business Intelligence.
Next steps
- Contact us to arrange a call to explore and discuss your Account Reconciliation requirements or the CCH Tagetik platform
- Sign up to our upcoming Account Reconciliation webinar
