Settling accounts

A global hospitality company could reconcile just 68% of its accounts on time, even though it was using a leading reconciliation-management tool. This led to lengthy cycle times, overworked staff, and error-prone reporting. As a result, it was hard to get solid, comprehensive financial information. Controllership suffered, too. We combined smarter processes and analytics with our Systems of EngagementTM. These technologies overlay existing ERPs to enhance productivity. The new structure created a continuous feedback loop that harnesses data and insights from processes to drive improvements and bring about Intelligent Operations. The solution helped the company close 97% of reconciliations within established timelines. That freed up finance staff and executives to dedicate more time to analytical activities, such as resolving open items, conducting root-cause analyses, and creating effective action plans.

The finance and accounting team responsible for the company’s North American hotel properties could only reconcile 68% of accounts on time. It had already invested in a dedicated technology tool that promised tighter controllership, faster and more responsive decision-making, and greater efficiency. Yet the team wasn’t seeing results. The backlog of open items meant that the finance and accounting staff—and the controller—had no time for root-cause analyses, open-item resolution, or other value-added activities.

Inspired by our Intelligent Operations approach, which builds smart processes that can sense, act, and learn at scale, the company chose Genpact to help reimagine its reconciliation process.

Genpact standardized and automated the end-to-end reconciliations process and localized procedures. We also eliminated silos, gaps in knowledge and processes, and manual entry. Our work continues to accelerate the delivery of more cost-effective, accurate processing, freeing up time for finance and accounting staff to deliver work of higher value.

To transform reconciliations, Genpact:

• Re-engineered the process so tasks move through the process and management tool consistently, automatically, and seamlessly
• Created a center of excellence to get teams on side, help share ideas and best practices, and reduce people dependencies
• Prioritized the company’s accounts by risk, and defined the level of detail and frequency needed to reconcile each account
• Improved governance and tracking so that teams reconcile accounts by a set deadline
• Built a more knowledgeable finance and accounting team, so they could focus their talents on value-added strategic activities

With an eye on technology transformation, we also:

• Evaluated the company’s back-office operations against industry best practice
• Introduced standard templates for prepaid reconciliations, accrued reconciliations, and control accounts, throughout the hotel firm’s North American operations
• Automated balance-sheet reconciliations, which allowed for consolidated and property-level reconciliations, and instituted a smart grouping of accounts (for example, capital accounts are now grouped together)
• Developed a set of customized auto-match parameters

After it re-engineered its processes and made the most out of its technology, the company achieved best-in-class status for account reconciliations. Other benefits the company enjoye

• A 43% increase in timely reconciliations
• More time for controllers to review, discuss, and resolve open items on end-of-month reports
• Faster, more informed decision-making and increased market agility
• Greater accuracy and completeness of financial statements
• More time for staff to work on open items, perform root-cause analyses, create resolution action plans, and engage in value-added activities