If account reconciliations were a game, Marc Ursick would be the guy who always plays to win.
A CPA and consultant, Ursick published an article in the Journal of Accountancy this past November that tried to achieve the seemingly impossible: make account reconciliation sound like a fun challenge rather than a complex chore.
While all of his tips were solid — prioritizing the balance sheet, defining a standard operation and so on – they specially stood out because he used sports analogies with each one. Some were about golf, others about football, but this one in particular stood out:
In bowling, it’s unlikely that every roll will be a strike. Similarly, not every reconciliation will be able to be reconciled to the penny. A common “quick win” improvement is to set tolerances and materiality thresholds across the organization. Rather than wasting time attempting to reconcile low dollar values, team members should work on other accounts or activities. Common thresholds that organizations set include unreconciled differences and required adjustments.
While perfection may be unattainable, however, many finance departments have to do whatever they can to ensure account reconciliation is as accurate as possible. As Ursick might put it, no one wants to see their reputation go trailing into the gutters. Continue reading This is Why There’s No Such Thing as ‘Good Enough’ Account Reconciliation