5 Strategies for Streamlining

Reconciliations in Excel
Mike Whitmire
Sponsored by:

August 31, 2016

Webinar Features and CPE Credit

Asking Questions
Help
CPE Credit Requirements

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Webinar Features
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@IMA_News
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Moderator

Steve Shannon
Director
Partnership Marketing

IMA

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Featured Presenter

Mike Whitmire, CPA

CEO and Cofounder

FloQast, Inc.

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Learning Objectives
Upon completing this webinar, you will be able to:
1. Improve your reconciliation process by applying strategies used
by some of the most cutting-edge companies in the world
2. Determine how to ensure completeness when closing the books
3. Understand real-life examples of workflow adjustments that have
helped organizations implement regular reconciliations
4. Explain how to reduce the number of days it takes to reconcile
your accounts
5. Identify best practices for staying audit-ready
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Speaker Biography
Mike Whitmire
Co-Founder & CEO

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Five Strategies
1. Assess Trial Balance for Completeness
2. Standardize Templates with Documentation
3. Organize Documentation in a Logical Manner
4. Tie Out Trial Balance
5. Centralize Reviews

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Laying the Groundwork: Elements

People
Process
Documents
Reconciliations

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Polling Question 1
What is the most significant challenge in your month end
close process?
a)
b)
c)
d)
e)
f)
g)

Reducing the number of days it takes to close the books

Audit preparation
Management oversight
Preparing accurate documentation
Organizing documentation
Automating manual processes
None of the above

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Polling Question 1 Results (Placeholder)

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Laying the Groundwork: Why Excel?

Strengths
o Advanced functionality for organizing, massaging and manipulating data
o Specific functions designed specifically for accounting and financial
modeling
o Ability to manage large cache of data
o Common language between accounting, audit and tax
o 30 years of development from Microsoft

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Laying the Groundwork: Why Excel?

Weaknesses
o Limitations with linking to other functions or data
o Lack of controls and transparency
o Lack of collaboration functions
o No ability to track changes by individuals over time
o Not adequate for managing people during the close process

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Assess Trial Balance: for Completeness

o Are you tying out at the end of each month?
o High-level review to understand current state:
1. How are we currently tying out each account?

2. How is each reconciliation structured?

3. Why is each reconciliation structured that way?

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Polling Question 2
Which ERP System does your company use?
a)
b)
c)
d)
e)
f)
g)
h)

NetSuite
Intacct
SAP
Oracle
Microsoft
FinancialForce
Quickbooks
Other
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Polling Question 2 Results (Placeholder)

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Standardize Templates for Documentation

Why standardize?
o Team alignment
o Consistent, streamlined preparer process
o Role shift flexibility
o Greatly accelerate review process

o Reduce errors
o Simplified for auditors
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Standardize Templates for Documentation

Three best practice Excel templates, customizable to any close process:
1

Lead Sheet

Rollforward

Subledger
Best practice Excel rec templates:

floqast.com/ima-templates
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#1 Lead Sheet
Best for items with very manual processes
Many items roll up to one number
Example: Accrued Expense

Best practice Excel rec templates:

floqast.com/ima-templates
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Lead Sheet: Accrued Expense

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#2 Rollforward
o Great for items with many ins and outs

o Outlines:
o Beginning balance
o Additions
o Subtractions
o Ending balance
o Example: Capitalized Software

Best practice Excel rec templates:

floqast.com/ima-templates
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Rollforward: Capitalized Software

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#3 Subledger
Great for semi-automated accounts with some common reconciling items

Made to display reconciling items and provide explanations

Example: Deferred Revenue

Best practice Excel rec templates:

floqast.com/ima-templates
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Subledger: Deferred Revenue

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Polling Question 3
What percent of your Trial Balance is tied out using Excel?
a)
b)
c)
d)

100%
50-99%
Less than 50%
Dont tie out

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Polling Question 3 Results (Placeholder)

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Organize Documentation in a Logical Manner

Entity
Period
Account
Benefits:
Accelerates review process
Easy to flip through folders and get
access to related documentation

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Tie Out Trial Balance

The way companies tie out their Trial Balance is changing
o Old: Printed tie-out binder
o Now: Consolidated Excel workbook
o Future: Dedicated software

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Centralize Reviews
o Challenges
o Inconsistent formats for recs
o Disparate systems, data and processes
o Clarifications lost in back and forth emails
o Communication barriers between multiple entities, global operations

o Process knowledge lost with employee turnover

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Centralize Reviews
Synchronize your process
Standardized checklist and reconciliations
Team alignment on process
Connect systems
Transition to cloud opens up opportunity to integrate systems

Dedicated solutions emerging for niche functions

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Conclusion: Elements
People
Process
Documents
Reconciliations
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Conclusion: Continuous Improvement

P o s t - Q u a r te r M e e tin g
o Day of rest
o Post-mortem
o Pick one problem to address as a team

o Execute next quarter

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Polling Question 4
Which of the following topics are you most interested in?
(select all that apply)
a)
b)
c)
d)
e)
f)
g)

Excel Tips
Accounting Trends
Accounting Technology
Best Practices for Closing
Best Practices for Audit Prep
Managing Millennials
Keeping Your Controller Happy

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Polling Question 4 Results (Placeholder)

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Conclusion: Resources
o Excel Reconciliation Templates
floqast.com/ima-templates

o FloQast Closing Software: 1-Minute Video

floqast.com/product

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Questions & Answers

Use the Q & A Panel to send your questions to our panelists.

Mike Whitmire, CPA

Steve Shannon

CEO and Cofounder

Director
Partnership Marketing

FloQast, Inc.

IMA
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Thank You to Our Featured Presenter!

Mike Whitmire, CPA

CEO and Cofounder

FloQast, Inc.

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Final Reminders
Complete the Evaluation poll 2 options

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Access to your CPE Certificate 2 options

Click the CPE icon at the bottom of your console

or
Click the link in your post-event email
Please print a copy of the CPE certificate for your records.
Your CPE credit will be automatically recorded in your transcript.
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Notification of Future Webinar Schedules

Next Inside Talk Webinar:
Thursday, September 8, 2016, 1 p.m. Eastern Daylight Time
The Sales Tax Audit Survival Guide

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Thank You to Our Sponsor!

www.FloQast.com