Understanding modern challenges of the reconciliation process

Reconciliations play a key role in a firm’s day-to-day operations. They support crucial activities, such as cashflow reporting, regulatory reporting, risk mitigation, fraud prevention, audit and governance.

What is a reconciliation?

A reconciliation, as outlined in the generally accepted accounting principles (GAAP), is a process that compares internal financial records at a granular level (e.g. transaction or balance) against external sources. This might, for example, be a bank statement or ledger record.

More than 90% of companies still use desktop applications to manually perform their reconciliations process.

In this whitepaper, you will discover why a manual approach is both labour-intensive and increases a firm’s chances of making errors – especially when dealing with large volumes of data.

Understanding these challenges is becoming even more important as regulations become increasingly stringent, placing a greater burden on organisations.

As well as reading a comprehensive explanation of the reconciliations process, you will learn the common reconciliation challenges firms face today.

This paper also provides key insights into the different types of reconciliations, including:

  • Account reconciliations
  • Bank reconciliations
  • Cash reconciliations
  • Balance sheet reconciliations
  • Merchant reconciliations
  • Purchaser reconciliations
  • Payment reconciliations
  • Trade reconciliations
  • Intercompany reconciliations
  • Credit card reconciliations
  • Fixed asset/inventory reconciliations
  • ATM reconciliations
  • Position reconciliations
  • Transaction reconciliations

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