This document discusses the limitations of manual reconciliation processes and provides steps to reduce reliance on reconciliation in the digital age. It recommends upgrading ERP platforms, enhancing synergy between IT and finance, identifying reasons for mismatches, and assessing the number of ledger accounts depending on business size. It also discusses how industry leaders like a global bank and airline have boosted productivity by 25% and eliminated revenue leakage by automating reconciliation processes.

1. 1
Is Reconciliation Becoming Passé
in the Digital Age?
TCS Business Operations

2. 2
Why You Need
Reconciliation
The finance control function
must:
 Identify mismatched data
across finance and
accounting records
 Maintain the integrity and
accuracy of financial
statements
 Meet regulatory and audit
control requirements

3. 3
Limitations of Manual
Reconciliation
Traditional processes
continue to operate in silos,
and are:
 Time-consuming
 Resource-intensive
 Error-prone
Resulting in dependency
on additional controls
and tools

4. 4
Four Steps to Reduce Reliance on Reconciliation
Upgrade your ERP platform with built-in control mechanisms
to minimize errors
Enhance synergy between IT and finance and implement
transformative solutions
Identify reasons for mismatches and areas that require
immediate resolution using a Pareto chart
Assess the number of ledger accounts depending on your
business’ size
Step
1
Step
2
Step
3
Step
4
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5. 5
Align Tools and Processes to Business Outcomes
 Employ electronic risk and control mechanisms to increase visibility and
accountability
 Shift to a risk-based approach backed by analytics for control checks on
transactions
 Automate upstream processes to flag issues that do not meet established
control processes
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6. 6
Industry Leaders are
Rethinking
Reconciliation
 Case Study 1: Global bank
boosts productivity by 25%
 Case Study 2: Leading
airline eliminates revenue
leakage
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7. 7
#1: Global Bank Boosts Productivity by 25%
Challenge Solution Results
• Cost, time, and
effort-intensive
monitoring of 2000+
accounts
• Reviewed and
rationalized all
accounts
• Conducted thorough
root cause analysis
for each discrepancy
• Reduced number of
accounts from
2000+ to ~700
• Minimized errors
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8. 8
Challenge Solution Results
• Time and effort-
intensive
reconciliation
processes
• Revenue leakage due
to complex, interline
billing
• Automated checks
and balances
through aligned IT
and finance functions
• Enhanced error
detection
• Eliminated revenue
leakage due to
erroneous fares
#2: Leading Airline Eliminates Revenue Leakage
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9. 9
Drive Agility with Proactive Reconciliation
 Gain greater accuracy and lower processing costs
 Ensure effective utilization of resources
 Achieve end-to-end transparency and strengthen confidence in financial
reporting
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10. 10
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Is Reconciliation Becoming
Passé in the Digital Age?
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