1. Periodic Accounting Review Periodic Revenue Reconciliation
Financial Management – Periodic Revenue Reconciliation
Periodic Accounting Review
Periodic Revenue Reconciliation
Description: This workflow describes all the steps required to monitor all sources of revenue and payment. The primary purpose of this workflow is to reconcile what payments should’ve been received by the firm against what was actually received. Best practice is to perform a revenue reconciliation on a quarterly basis, at the end of every financial quarter.
Process Checklist
PREPARE
ROLE
TASK
DETAILS/TIPS
Advisor
Identify & Calculate Sources of Revenue
Identify and quantify all sources of revenue (i.e., fees, commissions, marketing support, donations, etc.) within the firm
Reference any pay statements or documentation as necessary, making sure not to leave any sources of revenue unrecorded
Best practice is to categorize all sources of revenue for reporting purposes so that the firm can identify what activities generate what levels of revenue
Create a prioritized list of revenue sources, starting with the highest source of revenue in descending order to the lowest source of revenue
Prioritizing the list allows the firm to start reconciling the largest, most important sources of revenue first for any obvious discrepancies that need to be addressed right away
Calculate total revenue that should have been received during this pay period by adding up the sum of the total list
Process Checklist
CONDUCT
ROLE
TASK
DETAILS/TIPS
Advisor
Evaluate Calculations & Statements for Issues
Compare calculated revenue against payments received for any variances
Review past and current pay statements for any notable changes in revenue
Even if the sum of what should’ve been paid equals what was actually paid, it’s important to understand why revenue might vary from period to period in order to be able to project future revenue
If a large part of revenue is based off of a source which varies greatly from pay period to period, then it is imperative that the firm understand this risk and evaluate how sustainable their revenue streams are
Identify any issues, errors, or concerns
Create a summary list of those concerns that need to be followed-up on
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2. Periodic Accounting Review Periodic Revenue Reconciliation
Financial Management – Periodic Revenue Reconciliation
Periodic Accounting Review
Periodic Revenue Reconciliation
Process Checklist
FOLLOW-UP
ROLE
TASK
DETAILS/TIPS
Advisor
Manage Tasks to Resolves Any Issues
(if applicable)
Contact all relevant parties to address any issues that might’ve been identified
Be as specific as possible when explaining the issue to other parties and offer to provide documentation of the issue to ensure there is no room for misinterpretation that might slow the process for resolving the issue
Obtain dates for when all issues are projected to be resolved by third-parties
Set reminders to follow-up on any error resolution as appropriate
Confirm all issues are resolved and settled in a timely manner
File All Documents Internally for Record-Keeping
File all relevant documents internally for record-keeping purposes
Launch the "Periodic Revenue Reconciliation" workflow again
Typically this is launched on a quarterly basis in an effort to continue to track and monitor revenue regularly
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© 2015 SEI. This information is proprietary.  No further distribution is intended.