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