ACCOUNT RECONCILIATION MEANING 101: BACK TO BASICS
The reconciliation process is a critical first step in the financial close and sets the foundation for period-end success. However, due to its impact on all subsequent close activities, many find reconciliations to be an extremely stressful process that results in using more resources than planned for completion. In some organisations, nearly the entire Finance and Accounting (F&A) team must drop everything and reconcile. But, will it always be this way?
What is the ultimate goal?
Account reconciliations are a necessity to ensure overall financial integrity. Every FP&A organisation strives to consistently complete its reconciliation process efficiently and without errors. When handled poorly, this can snowball into larger issues later in the close. An efficient and effective reconciliation process is not impossible though. Organisations that establish a strong system of controls within the finance department are successfully achieving both efficiency and effectiveness throughout their close processes.
