Imagine a world where every financial transaction flows effortlessly into a unified ERP system, automating general ledger reconciliation effortlessly. Sounds perfect, right? Unfortunately, the reality is often quite different. Many organizations grapple with a patchwork of systems and missing transactions that can derail even the most skilled finance teams.
That's why keeping a close eye on the average time accounting staff spends reconciling the ledger is essential. Delays in this process can stall strategic decision-making and create bottlenecks that affect vital activities like forecasting and planning. Streamlining reconciliation is not just a matter of efficiency; it’s key to empowering your finance function and driving your business forward.
To prevent delays, APQC recommends organizations tighten up their process to shorten the cycle time while prioritizing the accuracy of financial statements.
Tightening up the process
Most modern ERPs automate forbearance matching, so organizations should fully utilize these features to enhance accounting processes. Companies with multiple financial systems, like payroll and sales, should consider consolidating them into one ERP for a clearer general ledger. High transaction volumes may require more frequent reconciliations to lighten end-of-month workloads. It's essential for accounting staff, including controllers and accountants, to be detail-oriented and proactive in investigating issues, which can lead to quicker resolutions and shorter cycle times.
Learn more about the hours to reconcile the general ledger and how tightening up the process can help shorten cycle time in the article.