Does low-tech essentially mean low-cost? Maybe not. A financial close Reconciliation software system is transparently cost-effective.
We like security. You prefer security. As CFO’s we tend to not to just prefer security, we tend to demand it. Our brains continuously store constant reminders of Compliance, Governance and of course Risk.
Storing all monthly close reports in binders might give that old style feel of security, however that feeling is deceptive.
the Sudden Audit Check
What if you’re suddenly audited? What happens when you have to go back and check a reconciliation statement? What happens if you’re a large company and its an internal auditor or your Risk Manager who needs to make sure fraud is kept at bay in the Month end close process? what is it going to take?
In all these situations, utilising binders to archive is eventually going to prove a lot more of a hindrance than a help:
– What binder is it in? The physical area needed to store the binders could be a growing inefficiency.
– Where is it? It generally is in a hefty binder to go through.
– Will the account reconciliation be understood easily enough? And all of the supporting documentation? It’s tough to trace who the financial reconciliation was originally performed by, particularly if there’s a reference to another account. Exploring through your archive binders is tedious.
– Even if impeccably filed, it still will still take a member of your finance team a while to uncover the precise piece of data required.
– Chartered Accountants costs. The in depth manual search time finding all the data that proves that your Month end close was correct, requires money. If you’re a group of corporations, they have to travel to your various offices which in turn requires money too.
With the some financial close software systems offered on the market all the month end close reconciliation work is mainlined in digital archives. The act of looking for and retrieving documents is typically needed at a moment’s notice… for any references. Or perhaps for searches on which reconciliation policy and what reconciliation procedure was used.
Checking documents from this perspective can result in a suggestion for improvement, which can be very valuable. Or how about the criteria for the supporting documentation, is it sensible enough? Or, how was this account reconciled within the previous period? Or, how will an equivalent reconciler reconcile different accounts?
Answering essential queries like these via electronic search compared to manual searching is really cost-effective, don’t you agree? The digital archive within the Cloud is additionally more “secure’ against fire or flood. The chartered accountant won’t even need to visit your offices, the audit is often done from their office.
High tech accounting software systems doesn’t always mean high-cost
High tech financial reconciliation software can even be comparatively affordable compared to low-tech solutions. Yes, it’s invariably going to cost a bit more compared to Excel, however still less compared to the work to make “Excel Reconciliation’ effectively complete the Month end close – in addition, it more importantly, addresses and satisfies the common issues listed above.
Some financial Reconciliation software systems available on the market feature…
• automated account reconciliation management
• an approval workflow scheduler
• a compliance checker
• a digital archive
• and more…
… to make your monthly close process quicker, easier and with less risks involved.
Enhanced account reconciliation software systems have been purposefully designed to satisfy all the challenges finance professionals expressed within the recent Adra Match financial close benchmark survey. Or if you would like a quick summary, get the infographic covering the financial close benchmark results. Some financial close reconciliation software’s, are often transparently cost-effective and offers you features only giant corporations were large enough to afford. That is until now.