Reconciliation doesn’t have to be a four-letter word
One of the banes of many financial professionals’ existence is reconciliation. Essentially, reconciliation is the process of ensuring all your reported financial activity is backed up by tangible evidence ¾ the accounting transactions and the documents, such as customer invoices and supplier payments, that spawn them. While you can, and probably should, reconcile your subledger accounts frequently ¾ every week, say ¾ you must reconcile your accounts prior to each period close.
For many, this involves holing up in an office, “Do Not Enter” barriers blocking the entrance, while they pore over scores of spreadsheets to identify, and then address, all of the accounting transactions that need to be accrued for, or that may be missing from their accounting system altogether and must be manually entered. A range of providers can automate portions of this process. But you’ll still have to deal with disparate discrete systems from which you must generate and comb through separate reports. Even software giants haven’t progressed far in addressing this particular pain point. Oracle, for example, keeps subledger data in separate servers, effectively walling off the supporting documentation from the transactions that have been booked into your GL.
Kenandy’s approach to this conundrum is to house all source documents in the same system as their corresponding accounting entries. When you reconcile a period, the system automatically matches all of the accounting entries for a given subledger directly against each entry’s supporting documentation. In one report you get a complete list of three sets of transactions for the period:
- Transactions automatically created by Kenandy when a source document is entered into the system and finalized prior to the subledger cutoff date.
- Transactions automatically created by Kenandy based on source documents that were not finalized until after the subledger cutoff. These are your candidates for accrual.
- Transactions that lack documentation altogether. These are your candidates for manual journal entries.
For each exception¾that is, for each transaction that’s a candidate either for accrual or for manual entry¾and with a single click you can display details on that transaction, or its corresponding source document, so you can more quickly determine the correct course of action. In short, Kenandy assembles the same list of transactions, in a single report, that in the past you’d have to slog through multiple separate spreadsheets to compile.
This is just one example, albeit a significant one, of how Kenandy is bringing the true power and convenience of the cloud not only to your business, but to the way you do business. And as we continue to build out our application ¾ designed from the get-go with the needs of financial professionals front and center ¾ we will return reconciliation to its rightful place among its 14-letter word brethren.