At the conclusion of each week, month, and quarter, accounting teams spend an excessive number of hours manually reconciling data in spreadsheets to finalize the company’s financial records. This represents a significant and avoidable depletion of resources, especially considering the advanced technology available today. Many organizations face challenges completing the process of account reconciliations promptly. This is due to the overwhelming task of manually piecing together spreadsheets and emails to match transactions. This heightens the risk of overlooking transactions, producing inaccurate financial statements, and becoming susceptible to financial fraud.

With this in mind, three indicators that organizations can use to assess if they have surpassed the use of basic tools such as spreadsheets and emails to manage their account reconciliations include:

1. The process for account reconciliations is excessively time consuming

   The manual process of reviewing account balances and making adjustments by sifting through spreadsheets containing thousands of rows is a cumbersome and meticulous task. The likelihood of errors increases when data is manually entered and transferred between systems.
   
   With more steps involved, there is greater potential for mistakes, leading to the need for multiple checks and verifications. Consequently, accounting teams end up spending an excessive amount of time on the reconciliation process.
   
   Moreover, manually matching transactions from various resources can result in some general ledger (GL) accounts not being properly reconciled. This approach requires the finance department to invest weeks in uploading, locating, and manually reconciling transactions one by one. Accounting leaders must also conduct meetings with staff to understand the overall status of reconciliation activities. This only further extends the time it takes to close the books.
   
   This manual method also takes a toll on employee morale as they spend considerable time on unfulfilling data entry tasks.
   
   To address these challenges, NetSuite Account Reconciliation offers a solution, automating manual, time-consuming tasks related to transaction matching and reconciliation. Accounting teams can prioritize accounts based on risk or value, delegate reconciliation tasks to individual team members, and monitor the progress of the process as a whole.
   
   Low-risk or low-value accounts can be automatically reconciled without human intervention while potential discrepancies or anomalies are flagged. This automation allows accounting staff to concentrate on high-priority accounts, analyses, and providing strategic value to the organization. NetSuite’s auto-match engine can match millions of transactions within minutes. Companies can also establish flexible matching rules for individual transactions or groups of transactions. This can be one-to-one, many-to-one, and many-to-many matches, thereby expediting reconciliations and transaction matching.

2. There is a lack of trust in financial statements

   The absence of standardized processes and a reliance on spreadsheets introduces uncertainty. It causes doubt as to whether accounts were properly reconciled or if there were missed items and inaccuracies.
   
   In addition to impeding the financial close process, inaccurate reconciliations and financial statements can harm a company’s reputation. This can also potentially lead to fines for misreporting financial results.
   
   NetSuite Account Reconciliation addresses these concerns through a seamless integration with NetSuite’s enterprise resource planning (ERP) software. This integration automatically transfers all GL accounts and balances into the application for reconciliation and transaction matching. Further, NetSuite Account Reconciliation consolidates all reconciliation transactions and documents into one accessible location. This enables easy access for accounting staff, managers, and auditors. Additionally, gathering documents from multiple sources is not necessary, reducing the likelihood of accountants confusing or overlooking data or transactions.
   
   NetSuite also ensures that all transactions are accurately recorded in the appropriate GL accounts, enhancing the accuracy and timeliness of financial reporting and expediting the financial close process.

3. There are inadequate financial controls and compliance concerns

   Effective workflow controls among preparers, reviewers, and final approvers are crucial. However, manually enforcing stringent controls during the reconciliation process can inadvertently reduce transparency and lead to increased time and expenses.
   
   Accounting teams that rely on manual reconciliation not only waste valuable staff time but also jeopardize the integrity of financial statements, raising the risk of fraud and potential compliance issues.
   
   With NetSuite Account Reconciliation, teams gain access to a secure document repository, ensuring that reconciliations are not misplaced or lost while providing comprehensive global auditability. The solution maintains a detailed log of reconciliations as proof to meet financial control and compliance requirements. Standardized account reconciliation templates, along with automated workflows for review and approval processes and built-in segregation of duties, significantly enhance financial controls and enable auditors to access much-needed information independently.

Take the next step with NetSuite

Accounting leaders strive for an accurate and efficient reconciliation process that minimizes risks and expenses, ensures regulatory compliance, and provides a transparent audit trail. By achieving this, they can dedicate more time to data analysis and strategic decision making where their expertise holds more significant value. Furthermore, accounting team members can identify fraudulent and inaccurate transactions without the need for line-by-line reviews.

A cloud-based account reconciliation solution integrated with a company’s financial management system addresses numerous challenges related to manual, time-consuming, and error-prone processes, allowing accountants to make more meaningful contributions to the business.

NetSuite support provided by Citrin Cooperman

Citrin Cooperman’s Digital Services Practice helps companies that are experiencing challenges with manual and time-consuming account reconciliations using spreadsheets and emails. Our team’s NetSuite support and optimization services empowers organizations to enhance financial controls, ensure compliance, and gain a clear audit trail. To learn more about NetSuite Account Reconciliation and how our Digital Services Practice can help your business achieve its strategic goals, reach out to your Citrin Cooperman advisor or Maria Hammadi at sales@citrincooperman.com.