Net suite feb15 2.12.15

RECONCILIATIONS DONE RIGHT!Susan Parcells, CPA, CGMA

Director, Finance Transformation

The world’s most trusted solution for Finance Controls and Automation

CPE credits and supplemental information

We are issuing 1 CPE credit

To be eligible for CPE credit, please answer three (3) out of the four (4) polling questions throughout the duration of this webinar.

An email with a link to the CPE Course Evaluation Form will be emailed after the webinar.

We are issuing 1 CPE credit

To be eligible for CPE credit, please answer three (3) out of the four (4) polling questions throughout the duration of this webinar.

An email with a link to the CPE Course Evaluation Form will be emailed after the webinar.

The world’s most trusted solution for Finance Controls and Automation3

Today’s Speaker

Susan Parcells, CPA, CGMADirector, Finance Transformation & Product ExpertBlackLine



BLACKLINE IS…


BLACKLINE CLIENTS GLOBAL

Polling Question 1

a) 0 - 50b) 51 - 100c) 101 – 1,000d) Over 1,000e) Not sure/Don’t know

How many account reconciliations is your company performing on a monthly basis?


AGENDA

Identify best practices around bank and credit card account reconciliations

Discuss challenges around performing bank and credit card account reconciliations

Explore different ways to perform these types of reconciliations including using spreadsheets, using NetSuite and using BlackLine

Learn how BlackLine’s Transaction Matching and Reconciliation Management solutions can help companies of all sizes can address the challenges around not only the bank and credit card reconciliations but all balance sheet accounts, helping to ensure accurate financial data.






ACCOUNT RECONCILIATIONS

What is it?:

The process of verifying the integrity of data between independent records (such as a bank statement, vendor statement, etc.) and a company’s internal financial records.

Why perform account reconciliations?

To ensure the accuracy of the company’s internal financial data.

What is it?:

The process of verifying the integrity of data between independent records (such as a bank statement, vendor statement, etc.) and a company’s internal financial records.

Why perform account reconciliations?

To ensure the accuracy of the company’s internal financial data.


BANK ACCOUNT RECONCILIATIONS

What is it?:

The process of verifying the integrity of data between bank records and a company’s internal financial records.

Why perform bank account reconciliations?• Ensure the bank balances are correct and accurate along with the

company’s internal financial data. • Protect against fraud

What is it?:

The process of verifying the integrity of data between bank records and a company’s internal financial records.

Why perform bank account reconciliations?• Ensure the bank balances are correct and accurate along with the

company’s internal financial data. • Protect against fraud


ACCOUNT RECONCILIATION REQUIREMENTS

CFOs / CEOs need to attest the correctness of the financial statements and internal control systems of their entities and corporate group.

The purpose of reconciliation management is to provide reasonable assurance as to the accuracy of financial data at a specific point in time.

The focus of account reconciliation is on the correctness of account balances because they directly roll-up into the financial statements.

It is the process of comparing account data (on balance or item level) that exist in two systems or locations (outside of systems, e.g. on paper), analyzing variances, and making required corrections, so that the information is accurate.

There is a significant qualitative nature of Account Reconciliation. The assessments have to be documented by relevant calculations, clear and complete explanations, and copies of supporting documents in compliance with company policy.

The process and results of reconciliations must be easy to track and verify, and may be checked and signed-off by auditors.

CFOs / CEOs need to attest the correctness of the financial statements and internal control systems of their entities and corporate group.

The purpose of reconciliation management is to provide reasonable assurance as to the accuracy of financial data at a specific point in time.

The focus of account reconciliation is on the correctness of account balances because they directly roll-up into the financial statements.

It is the process of comparing account data (on balance or item level) that exist in two systems or locations (outside of systems, e.g. on paper), analyzing variances, and making required corrections, so that the information is accurate.

There is a significant qualitative nature of Account Reconciliation. The assessments have to be documented by relevant calculations, clear and complete explanations, and copies of supporting documents in compliance with company policy.

The process and results of reconciliations must be easy to track and verify, and may be checked and signed-off by auditors.


ACCOUNT RECONCILIATION BEST PRACTICES

Account reconciliations should be:

All inclusive

Accurate

Completed and reviewed in a timely manner

Support the appropriate accounting principles

Constantly reviewed and improved

Account reconciliations should be:

All inclusive

Accurate

Completed and reviewed in a timely manner

Support the appropriate accounting principles

Constantly reviewed and improved

A few extra tips:

Maintain a well documented policy that is up to date

Keep desktop procedures up to date

Provide adequate training

A few extra tips:

Maintain a well documented policy that is up to date

Keep desktop procedures up to date

Provide adequate training

Polling Question 2

a) 1 - 4 hoursb) 4 - 8 hoursc) 2 - 3 daysd) More than 3 dayse) Not sure/Don’t know

How long does it take your accounting team to perform the bank and/or credit card reconciliations?


AGENDA










What are some of the challenges or risks?

The process is manual and time consuming

Often reliant on spreadsheets which may contain errors

Little to no standardization across the reconciliations, making it difficult for reviewers, management and even auditors to quickly understand the data.

Lack of visibility into statuses and risk

Unclear ownership and workflow

Lots of supporting documentation, binders, boxes which take up space and can easily be misplaced.

Policies and procedures are often outdated or even non-existent

Accountants may know the steps to prepare the reconciliation but not truly understand what is going on in the account

The process is manual and time consuming

Often reliant on spreadsheets which may contain errors

Little to no standardization across the reconciliations, making it difficult for reviewers, management and even auditors to quickly understand the data.

Lack of visibility into statuses and risk

Unclear ownership and workflow

Lots of supporting documentation, binders, boxes which take up space and can easily be misplaced.

Policies and procedures are often outdated or even non-existent

Accountants may know the steps to prepare the reconciliation but not truly understand what is going on in the account

Polling Question 3

a) Too manual/too many spreadsheetsb) Too time consumingc) Little to no visibility into statuses and risksd) Ensuring all balance sheet accounts are reconciled e) All of the above

What are the biggest challenges your company faces around the reconciliation process?


AGENDA









DEMO


AGENDA










ISSUES WITH EXISTING PROCESSES RECAP

Human error

Inefficient process

Formula issues

Lack of Standardization

Lack of Visibility – Details– Errors not identified and fixed on a timely basis

Lack of Visibility - Status

Searching for supporting documentation

Lost reconciliations

Printing costs

Storage costs

Difficulty managing cash

Human error

Inefficient process

Formula issues

Lack of Standardization

Lack of Visibility – Details– Errors not identified and fixed on a timely basis

Lack of Visibility - Status

Searching for supporting documentation

Lost reconciliations

Printing costs

Storage costs

Difficulty managing cash


BlackLine Transaction Matching

Accurately match and reconcile millions of transactions in minutes.

User Configurable Matching Rules | Automatically Create Reconciling ItemsFull Audit Trails | Data Import Wizard



BlackLine Account Reconciliations

Eliminate spreadsheets, and increase efficiency, control and visibility.

Rules Driven Automated Reconciliations | Templates for Every Account Easy to Use Dashboards

Polling Question 4

a) BlackLineb) Excelc) Other third-party softwared) Internally developed tool/systeme) Doing manually

How is your company currently handling account reconciliations?

FINAL THOUGHTS


Expectation of Accuracy

ComplianceCreep

Shift to Real-Time

Operational Complexity

INCREASING DEMANDS


Now is the time to automate processes and provide increased control and visibility across the entire Modern Finance organization


Decrease risk and enforce

controls

Provide visibility into processes

Increase efficiency

MODERNIZING THE WAY FINANCE & ACCOUNTING WORK


THE BLACKLINE PLATFORM

TECHNOLOGY

PRODUCTS

SOLUTIONS


REAL RESULTS. REAL ROI.

Strong ROI with an average 3-6 month payback from labor savings

MeadWestvaco Corporation ROI: 495% Payback: 2 Months

Cox CommunicationsROI: 227% Payback: 6 Months

Education Management CorporationROI: 138% Payback: 10 Months


THANK YOU

31


QUESTIONS?

32

Susan [email protected]://www.blackline.com

https://www.blackline.com/

Documents

Net suite feb15 2.12.15