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Five Tips for a More Sustainable and Successful Cash Reconciliation Process

June 28, 2021

Track by Individual Bank Deposit
Maintaining a routine allows a more consistent application of the posting data. Track individual deposit transactions and force accountability at the transaction level, not by day or month.  Match deposits with batch and transaction files from your Patient Accounting System. This reduces the many-to-many relationships that result from the complex posting world in which most healthcare providers operate.

Transition Away from Spreadsheets
Consider automation options to support your operation. Data spread over multiple pages of an Excel workbook doesn’t present the real picture. Using Excel involves a significant amount of data entry, and entails all the risks associated with manual keystrokes. Avoid writing complex Excel formulas which break with simple data entry mistakes.

Understand the Process and Make Up of All Deposits
Knowing the make-up of each deposit type adds transparency to the reconciliation process. Map each payment path to the bank account, capturing all points of payments submitted for deposits. Identify the source of every deposit and whether payments are being rolled into large deposits. Reducing the number of deposits that are grouped allows easier reconciliation.

Gain Confidence: The Deposit Amount is the Source of Truth
This quickly highlights any unposted or unreconciled amounts, allowing staff to resolve those exceptions quickly. Track split deposits by the various Patient Accounting Systems and general ledger accounts where the cash belongs. Log batch-posted data in real-time as part of the posters’ workflow. The team posting the cash and reconciling the bank account(s) should leverage the same application.

Reconcile More Frequently than the Standard Monthly Reporting
This prevents a backlog of data from developing, and facilitates the ability of staff to deal with issues in more of a real-time manner. Create a formal, documented, and repeatable process. Compare your true monthly net deposits back to the sum of individually-tracked deposits for a given month. Finance and cash posting should be using the same workflow system.