Reconciliations Management
An essential part of monthly closing, reconciliations management is the process of comparing two sets of records with the purpose of ensuring that both sets are matched and accurate. Reconciliation management is important because it determines whether the funds that leave an account match the amount spent. Thus, reconciling accounts ensures no money is missing or fraudulently withdrawn.
Until recently, reconciliations management was a laborious, bottlenecked process, and yet necessary for understanding the account balance and to meet regulatory and auditing requirements. The reason it was so burdensome, especially for companies operating in different regions or with multiple account levels, was because of the disparity between data versions and data types. For this reason, many members of the Office-of-Finance are choosing to go with a consolidation and close solution that eliminates manual spreadsheet or paper based reconciliations. They now recognise the need for capabilities like automated matching and exceptions that can handle entities of all sizes, with multiple processes, and multiple lines of business.