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Hassle Free Reconciliations

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Information about Hassle Free Reconciliations
Business & Mgmt

Published on February 9, 2009

Author: bixpeppard

Source: slideshare.net

Description

Project outline for streamlining back-office invoice discounting and asset based finance sales ledger reconciliations. Based on Six Sigma principles ... but written for an ordinary business taking first steps.
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Hassle-free reconciliations A presentation for invoice discounting friends Monday, February 9, 2009

THE BASICS ... never out of fashion Client posts: Invoices Monday, February 9, 2009

THE BASICS ... never out of fashion Invoices Client posts: Credit notes Monday, February 9, 2009

THE BASICS ... never out of fashion Credit notes Invoices Client posts: Cash Monday, February 9, 2009

THE BASICS ... never out of fashion Cash Credit notes Invoices Client posts: Journal adjustments Monday, February 9, 2009

THE BASICS ... never out of fashion Adjustments Cash Credit notes Invoices Client posts: oops ... Errors Monday, February 9, 2009

THE BASICS ... never out of fashion Errors Adjustments Cash Credit notes Invoices This is the sales ledger, posted by the client. Monday, February 9, 2009

THE BASICS ... never out of fashion DISCOUNTER AVAILABILITY BASE Errors Adjustments Errors Cash Cash Credit notes Credit notes Invoices Invoices CLIENT SALES LEDGER Monday, February 9, 2009

THE BASICS ... never out of fashion DISCOUNTER AVAILABILITY BASE Errors Adjustments Errors Cash Cash Credit notes Credit notes Invoices Invoices CLIENT SALES LEDGER This is the Discounter’s Availability base. It is updated through notification. Monday, February 9, 2009

THE BASICS ... never out of fashion DISCOUNTER AVAILABILITY BASE Errors Adjustments Errors Cash Cash Credit notes Credit notes Invoices Invoices CLIENT SALES LEDGER Errors & Adjustments ? What about Monday, February 9, 2009

THE BASICS ... never out of fashion Reconciliation identifies errors and adjustments Monday, February 9, 2009

THE BASICS ... never out of fashion CLIENT-SIDE RECONCILIATION DISCOUNTER -SIDE RECONCILIATION Reconciled B/F sales ledger balance Reconciled B/F Availability base balance Add: invoices Add: matched invoice batches Less: credit notes Less: matched credit note batches Less: cash Less: matched cash +/- : adjustments C/F period end balance C/F period end Availability base balance Monday, February 9, 2009

THE BASICS ... never out of fashion CLIENT-SIDE RECONCILIATION DISCOUNTER -SIDE RECONCILIATION Reconciled B/F sales ledger balance Reconciled B/F Availability base balance Add: invoices Add: matched invoice batches Less: credit notes Less: matched credit note batches Less: cash Less: matched cash +/- : verified client adjustments +/- : adjustments +/- : discounter-side adjustments C/F period end balance C/F period end Availability base balance NB: Adjustments need to be put through in order to complete the reconciliation process. Monday, February 9, 2009

How to get to: Hassle-free Make it predictable Monday, February 9, 2009

How to get to: Hassle-free Step 1: Receive information from client Monday, February 9, 2009

How to get to: Hassle-free information Step 2: Process information Monday, February 9, 2009

How to get to: Hassle-free information process rec. Step 3: Output rec. result Monday, February 9, 2009

How to get to: Hassle-free information process rec. output result A three step process. Monday, February 9, 2009

How to get to: Hassle-free What can go wrong? Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Late or non-submission Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Late or non-submission Incomplete information Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Late or non-submission Incomplete information Incorrect information Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Fragmented, unsystematic steps Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Fragmented, unsystematic steps Inadequate clerical mandates Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result Fragmented, unsystematic steps Inadequate clerical mandates “Shout-loudest” method of assigning priority Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result “Shout-loudest” method of assigning priority Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result “Shout-loudest” method of assigning priority Measuring system unfit for purpose Monday, February 9, 2009

How to get to: Hassle-free WHAT CAN GO WRONG? information process rec. output result “Shout-loudest” method of assigning priority Measuring system unfit for purpose Uncertainty for client as to when and how availability will change Monday, February 9, 2009

How to get to: Hassle-free Want to be Hassle-Free? Monday, February 9, 2009

How to get to: Hassle-free Take these steps - tweak them to make them work for you. Monday, February 9, 2009

How to get to: Hassle-free Try the Resource Bank at bixpeppard.com for more ideas. Monday, February 9, 2009

How to get to: Hassle-free submissions information process rec. output result Make this about communication and re-connection. Monday, February 9, 2009

How to get to: Hassle-free submissions. This month, for every facility, send one of three communications: LETTER A LETTER B LETTER C We have just received your reconciliation. It was on-time, complete and accurate. That really helps us to keep your facility running smoothly and we want to thank you. Thank you! Monday, February 9, 2009

How to get to: Hassle-free submissions. This month, for every facility, send one of three communications: LETTER A LETTER B LETTER C Thank-you for this month’s reconciliation. We were able to use some of the information, but there were a few problems with the submission and I wanted to let you know about them: ................... Can we work together to get this working better? Monday, February 9, 2009

How to get to: Hassle-free submissions. This month, for every facility, send one of three communications: LETTER A LETTER B LETTER C I wanted to let you know that there are some serious problems with the reconciliation this month. We have to work on them together as a matter of urgency because if we don’t solve the problem, the way your facility runs may change. Here are the issues: ... Can we agree a plan to tackle them? Monday, February 9, 2009

How to get to: Hassle-free submissions. This month, for every facility, send one of three communications: LETTER A LETTER B LETTER C I wanted to let you Thank-you for this We have just know that there are month’s received your some serious reconciliation. reconciliation. problems with the reconciliation this We were able to use It was on-time, month. some of the complete and information, but accurate. That We have to work on there were a few really helps us to them together as a problems with the keep your facility matter of urgency submission and I running smoothly because if we don’t wanted to let you and we want to solve the problem, the know about thank you. way your facility runs them: ................... may change. Thank you! Can we work together Here are the to get this working issues: ... better? Can we agree a plan to tackle them? Monday, February 9, 2009

How to get to: Hassle-free submissions. At the end of the month, count up: LETTER A, B or C A B C 18 180 200 Monday, February 9, 2009

How to get to: Hassle-free submissions. At the end of the month, count up: A, B or C FREQUENCY OF PROBLEMS 200 150 100 50 0 no cr. ledger can’t identify exports Monday, February 9, 2009

How to get to: Hassle-free submissions. At the end of the month, count up: A, B or C FREQUENCY OF PROBLEMS ANY LINK - PROBLEM TO “C” 60% of accounts which submitted paper ledgers received letter C. Monday, February 9, 2009

How to get to: Hassle-free submissions. At the end of the month, count up: A, B or C FREQUENCY OF PROBLEMS ANY LINK - PROBLEM TO “C” 200 A B 150 C 60% of accounts which submitted 18 paper ledgers 100 received letter C. 180 50 200 0 no cr. ledger can’t identify exports Use this information to work out what you most want to change. Try a back-of-an-envelope calculation to work out how much you might save. Monday, February 9, 2009

How to get to: Hassle-free processing. WHAT CAN GO WRONG? information process rec. output result This is where we get everyone working the same way. Monday, February 9, 2009

How to get to: Hassle-free processing Better for clients - more predictable Better for risk - easier to pinpoint acute problems Better use of resources - £ per reconciliation falls Monday, February 9, 2009

How to get to: Hassle-free processing Better for clients - more predictable Better for risk - easier to pinpoint acute problems Better use of resources - £ per reconciliation falls Monday, February 9, 2009

How to get to: Hassle-free processing Better for clients - more predictable Better for risk - easier to pinpoint acute problems Better use of resources - £ per reconciliation falls Monday, February 9, 2009

How to get to: Hassle-free processing. One person decides ... DEFINE & DOCUMENT “The definitive guide” Monday, February 9, 2009

How to get to: Hassle-free processing. One person decides ... DEFINE & DOCUMENT MAKE IT SELF-CONTAINED A single person can perform the process from end to end. If there are glitches, there is a defined escalation process and a clear hand-over. Monday, February 9, 2009

How to get to: Hassle-free processing. One person decides ... DEFINE & DOCUMENT MAKE IT SELF-CONTAINED SET A PRIORITISATION SYSTEM Weight for size of account, risk category, fees earned, key relationship etc. to get a prioritization score. Monday, February 9, 2009

How to get to: Hassle-free processing. One person decides ... DEFINE & DOCUMENT MAKE IT SELF-CONTAINED SET A PRIORITISATION SYSTEM A single person Weight for size of can perform the account, risk process from end “The category, fees to end. If there definitive earned, key are glitches, relationship etc. there is a defined guide” to get a escalation prioritization process and a score. clear hand-over. Run a competition to spark and capture ideas. But this isn’t process design by consensus. In the end, one person decides what the process will be. Monday, February 9, 2009

How to get to: Hassle-free output information process rec. output result Comprehensive monitoring and a service commitment which says that availability will be updated within 3 working days. Monday, February 9, 2009

How to get to: Hassle-free output ONLINE TRACKER - CLIENT FACING SIDE RECONCILIATION TRACKER m/e 31 January, 2009 due by 15th February, 2009 DATE SUBMITTED: 12/02/2009 DATE ACCEPTED: 12/02/2009 STATUS: Not yet started. In progress. System availability updated. If your availability has been updated, you can click here to see the full calculation. Would this look good on your system? Monday, February 9, 2009

How to get to: Hassle-free output ONLINE TRACKER - PORTFOLIO SIDE RECONCILIATION TRACKER m/e 31 January, 2009 due by 15th February, 2009 not yet received not yet started in progress escalated availability updated Click to see: by overall number by risk category by client manager Choose a simple graphic for yourself - one click away from the detailed data. Monday, February 9, 2009

Hassle-free reconciliations The wins Client expectations about service - met Cost per reconciliation - driven down Better risk management - sharper focus Time for ad hoc investigations - created Monday, February 9, 2009

Hassle-free reconciliations The wins Client expectations about service - met Cost per reconciliation - driven down Better risk management - sharper focus Time for ad hoc investigations - created Monday, February 9, 2009

Hassle-free reconciliations The wins Client expectations about service - met Cost per reconciliation - driven down Better risk management - sharper focus Time for ad hoc investigations - created Monday, February 9, 2009

Hassle-free reconciliations The wins Client expectations about service - met Cost per reconciliation - driven down Better risk management - sharper focus Time for ad hoc investigations - created Monday, February 9, 2009

How to get to: Hassle-free Thank-you for watching! Monday, February 9, 2009

How to get to: Hassle-free Try the Resource Bank at bixpeppard.com for more ideas. End. Monday, February 9, 2009

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