In global finance operations, control accounts play a critical role in maintaining transparency and accuracy in financial statements. However, even well-structured processes can face challenges when dependencies across teams and systems are not closely monitored. This case highlights how timely reconciliation and cross-functional collaboration are essential for managing travel and expense (T&E) control accounts, especially when corporate credit cards are involved.
The Challenge: Aging Balances and Reporting Gaps
A concern surfaced when the controller noticed unusually aged balances in a control account used to record and settle corporate credit card transactions. While vendor invoices from the card service provider were recorded promptly by the accounts payable team, delays emerged in clearing these entries due to incomplete or late employee expense submissions. These reporting lags, combined with minor mismatches between credit card statements and submitted reports, gradually led to an accumulation of unreconciled line items.
This situation not only impacted account hygiene but also created a risk of inaccurate financial reporting. In a European entity operating under strict regulatory standards, timely resolution became essential to maintain audit-readiness and ensure balance sheet integrity.
Execution of Corrective Measures
The finance team initiated a structured cleanup approach, starting with a comprehensive review of the latest control account data. A period-based analysis helped identify areas where balances had aged beyond acceptable thresholds. Minimal discrepancies below a materiality threshold were written off to simplify the reconciliation process and focus efforts on significant gaps.
Next, credit card statements served as a reference point to identify employees who had not submitted corresponding expense reports. A systematic follow-up mechanism was executed to ensure pending claims were filed and accurately matched. For former employees with unclaimed dues, amounts were written off only after securing formal approvals, adhering to internal governance protocols and audit guidelines.
Building Stronger, Sustainable Controls
To prevent recurrence, Right Path Global Services partnered with the client’s GL and T&E teams to design a proactive monitoring framework. The GL team now reconciles control accounts with the credit card statements at regular intervals to flag missing reports early. Simultaneously, a coordinated workflow has been established to ensure employees submit expenses on time, supported by reminders and compliance checkpoints.
This collaborative approach reinforces accountability and ensures seamless information flow between accounts payable, general ledger, and T&E functions. Timely expense reporting is no longer viewed as an administrative task but a financial control necessary for accurate monthly closing.
Conclusion: Strengthening Financial Governance Through Discipline and Collaboration
This case study demonstrates the importance of timely reconciliations and inter-team alignment in maintaining clean books and audit-ready financials. When processes rely on inputs from multiple stakeholders, strong coordination becomes a strategic asset. At Right Path Global Services, we believe that disciplined controls, supported by technology and clear communication models, are key enablers of operational excellence in Record-to-Report cycles. By fostering accountability at every stage, organizations can maintain control account accuracy, enhance transparency, and build confidence in their financial reporting framework.
