Automated bank reconciliation

and cashbook integration into the ledger  

Mid Yorkshire Hospitals NHS Trust, North East and Yorkshire, Acute

 

 

The problem

We wanted to automate the reconciliation of general ledger (GL) items to the bank within the finance ledger and not rely on inefficient processes and tools, such as Excel spreadsheets.

The challenge

  • Our cash book and bank reconciliation were done manually by downloading general ledger (GL) data and bank statements which was a very manual time-consuming process.
  • Our cash book was not held in the finance system, so it could be manipulated by anyone with access to the Excel spreadsheet. Multiple users also required access at the same time.
  • All income and expenditure items were manually checked to the bank to ensure that they had cleared to the general ledger. This was not done every day, however it was still time consuming.
  • Oracle Cloud has a cashbook (cash management) but no one in the NHS is using it, and there was no guidance from our provider or Oracle on how to implement it.

The outputs

  • All bank statements load and reconcile in the finance system.
  • Automated reconciliation of all GL transactions to the bank.
  • All creditor payments clear automatically.
  • All debtor cash is now cleared as receipting now uses a unique reference from cash management.

The outcomes

  • Numerous hours a day have been saved by the implementation of this process.
  • We now have an improved control environment. Bank statements are held in a system where segregation of duties ensures they cannot be tampered with and daily balances are checked for completeness.
  • Users have access to live reports and all items are reconciled in the system.
  • We have experienced an improvement in team morale. As a team we achieved something no other Trust using Oracle Cloud had done yet. To be the first of 40 trusts in our consortium has made the team feel valued experts in their field and collectively proud of their achievements. We have written the documentation which can be shared on request.
  • Our internal auditor has commented that this system has improved our controls and is pleased to see less reliance on spreadsheets.

The Innovation

Read the full innovation on automated bank reconciliation and cashbook integration into the ledger

All the documents and resources relating to this innovation can be found in the downloads section at the bottom of the page.

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Innovation Q&A

Innovation Showcase, 8th July 2022

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What the peer-reviewers said

“This is an excellent scheme which shows how taking the time to understand all the potential options already available to you can save time and effort, and also improve quality. Standing back and taking the time to see what the possibilities are is highly recommended.”

“Using the system to the best of its ability is a brilliant achievement in itself and although this is only limited to Oracle Cloud, the theory is widely applicable to other finance systems that could take on the same approach.”

“Fantastic use of a part of the system already available. Brilliant reduction of manual work on bank reconciliations.”

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Downloads

Here are all of the documents and resources related to this innovation

Innovation A2

Automated bank reconciliation and cashbook integration into the ledger

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Supporting evidence A2 (2)

Cash management presentation – Powerpoint

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