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Advice and Information for Finance Professionals

How to Banish Painful Transaction Matching Now

Nigel Youell
Senior Director

Finance departments face increasing pressure to transform and streamline the financial close and reporting function while continuing to maintain the integrity of the financial statements and close process. A key part of this close process includes the completion of detailed reconciliations, including transaction matching, which is often a major bottleneck. The necessity for understanding and certifying balances and transactions is prompted by regulatory and audit control requirements.

In addition to the statutory pressure for reconciliations, the current economic situation makes it imperative for finance executives to be confident of the transactions behind every account. They need to be able to easily identify fraudulent, improper and excessively aged transactions. In most organizations, the reconciliation process is a time consuming and manual process. A robust and integrated reconciliation software application can empower Finance to more effectively and efficiently manage its business.

Streamlining Account Reconciliations

Account reconciliation is the #1 non-data related delay in the close process, according to The Challenges of Corporate Financial Reporting, a study carried out by Dynamic Markets on behalf of Oracle and Accenture.

Exploit Automated Reconciliation

Many organizations have to perform thousands of reconciliations at every month end. Doing this as a manual process requires considerable resources, takes too long and can delay the financial reporting process. This is further complicated by the number of managers and staff involved.

"More than half of respondents surveyed said they still reconcile accounts manually."—Benchmarking the Accounting & Finance Function 2015, Financial Executives Research Foundation (FERF) and Robert Half

To effectively manage large numbers of reconciliations, organizations should ideally automate the process as much as is possible. To do this they need to:

  • Fully integrate the reconciliation process into the financial close
  • Provide workflow support for the reconciliation process, including monitoring, reporting and analysis
  • Automate the transaction matching process
  • Employ flexible matching rules with configurable tolerances
  • Use proactive matching to resolve issues prior to financial close

Organizations that do can this achieve a predicable process timescale that does not delay the financial close, improves finance staff efficiencies, and reduces the number of manual reconciliations without compromising accuracy or increasing risk.

Oracle Account Reconciliation Cloud, Now with Transaction Matching

Oracle Account Reconciliation Cloud is a purpose-built solution for managing the global reconciliation process, including transaction matching. Transaction matching capabilities include:

  • Data Optimization and Normalization—Maximize the number of matches created using tools that improve data quality.
  • Flexible Matching Rules with Configurable Tolerances—Define match rules that produce 1-to-1, 1-to-many, many-to-1, and many-to-many matches. Configure tolerance rules that allow match creation with acceptable thresholds.
  • Interactive Matching—View suggested matches and decide whether to confirm or reject. Create manual matches subject to configurable constraints.
  • Management of Discrepancies—Create adjustments for variances between data sources, and track the resolution of the adjustments.
  • Balancing—Create period-end balancing reports that satisfy accounting compliance requirements.

Oracle Account Reconciliation Cloud provides real-time visibility into the performance of reconciliations and ensures that all reconciliations prepared are properly qualified. Companies can streamline and optimize performance by automating certain reconciliation tasks and supporting risk-based reconciliation cycles. The result is timely, accurate account reconciliations and ultimately a faster close.

Visit our web site for more information on Oracle Account Reconciliation Cloud and transaction matching. 

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