The Finance Team’s Guide to Reconciliation KPIs

The best reconciliation KPIs are those that encourage accountability and improvement, not just measurement for its own sake. They highlight the connection between efficiency, control, and confidence in financial reporting. With SAP-native automation, these metrics become much easier to track. Dashboards provide real-time visibility into performance, completion status, and exceptions. Instead of waiting for problems at audit, finance leaders can see where to act during the month. By defining and tracking reconciliation KPIs, finance teams move closer to continuous, controlled, and predictable month-end closes.

Book a demo to find out how BEST helps finance teams improve reconciliation performance.

You can use automation to support shared services and global finance teams in SAP by simplifying intercompany reconciliations, improving visibility across entities, and ensuring consistency in the reconciliation of general ledger accounts. With SAP-native automation, finance teams can manage intercompany balances, streamline processes, and reduce manual intervention, all while maintaining complete control inside the SAP environment.

Why Intercompany Reconciliation Matters

Reconciliation is the foundation of financial accuracy. Yet in most organisations, it’s treated as an administrative task rather than a measurable process. Without defined metrics, inefficiencies go unnoticed and teams remain in a reactive cycle of fixes and rework at month-end. By introducing reconciliation KPIs, finance leaders can shift from managing effort to managing outcomes. The focus moves from ‘Did we get through close?’ to ‘How efficiently, accurately, and consistently did we do it?

1. Close Cycle Time

The most visible metric and often the most painful. Tracking the average time to complete reconciliations each period helps identify bottlenecks and quantify the impact of automation. A shorter cycle time doesn’t just mean efficiency; it also means more time for analysis and review.

2. Auto-Match Rate

A clear indicator of how effective your reconciliation process is. In manual environments, matching transactions line by line consumes huge amounts of time. Automation in SAP can achieve 90–95% auto-match rates, freeing finance teams to focus on exceptions rather than data entry.

3. Exceptions and Unresolved Items

Monitoring how many items remain unreconciled at close provides insight into process control and data quality. Fewer exceptions mean stronger reconciliation discipline and fewer surprises during audit.

4. On-Time Completion

A simple but powerful measure of operational control. Tracking whether reconciliations are completed on schedule each month shows whether teams are managing workloads effectively and whether deadlines are realistic.

5. Audit Findings

A lagging KPI, but one that tells a clear story. Frequent audit queries about reconciliation documentation, control evidence, or sign-offs usually point to process inconsistency or manual gaps.

6. Review and Approval Time

Inconsistent sign-offs delay close and weaken controls. Measuring the time between reconciliation completion and approval highlights where review processes can be streamlined or automated.

7. Balance Sheet Accuracy

Ultimately, reconciliation KPIs support one goal: a clean, accurate balance sheet. Measuring the number of accounts requiring adjustment after close shows whether reconciliations are adding value or simply checking boxes.

Bringing it Together

The best reconciliation KPIs are those that encourage accountability and improvement, not just measurement for its own sake. They highlight the connection between efficiency, control, and confidence in financial reporting. With SAP-native automation, these metrics become much easier to track. Dashboards provide real-time visibility into performance, completion status, and exceptions. Instead of waiting for problems at audit, finance leaders can see where to act during the month. By defining and tracking reconciliation KPIs, finance teams move closer to continuous, controlled, and predictable month-end closes.

Book a demo to find out how BEST helps finance teams improve reconciliation performance.