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Suspense Account Reconciliations: Get Control over the Remediation Exercise

AutoRek has a defined methodology for solving suspense account management, using the same fundamental approach as we do for all reconciliation implementations.

Suspense account reconciliations are required to ensure that amounts placed into suspense (a temporary posting pending resolution of a query for example) are tracked and corrected.  Often these suspense accounts hold monies received in error or, in some cases, client monies awaiting an instruction.  Suspense accounts may be used to centrally collect money too and often collection accounts are used in this way before the monies are properly allocated to departments or divisions or some other form of account.  Because suspense accounts tend to be either a general ledger account or a bank account the correcting entry cannot often be linked to the originating entry by a flag so management of the accounts is done "off-system" – often in a spreadsheet.

All told, if the process has not been tightly managed during the period (or ever, as in some cases!) there is quite a journey of remediation to be undertaken and without proper control over the remediation exercise; it can be like hitting a moving target. Using AutoRek for suspense account management you can:

• Capture the first layer of data in a database (may be all aggregated amounts in the GL for example) by whichever means we can – from excel/CSV files to direct feeds
• Prioritise next steps. We may have some straight agrees at this stage which help us prioritise with the client where we focus energy to reduce risk and get best payback
• Map the sources of the data we need to "explode" the bulk items
• Capture the underlying data too – again from whatever source we can
• Drive the corrections to data and processes which reduce error and exposure based on known impacts from out data set
• Automate feeds from accounting systems, operational systems or other sources to deliver an automated process of matching, monitoring and reporting (as frequently as required).

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