5 Best Reconciliation Tools: Complete Guide

June 6, 2024
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Account reconciliation is a mandatory business process. While every business has its procedures, it follows a pretty standard process of matching transactions across ledgers and bank statements to ensure financial accuracy of accounts. Reconciliation tools help teams maximise their productivity and save time in what would otherwise be a very timely process of account reconciliation. 

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But, how do you find the tool that is right for your business? It begins by understanding what account reconciliation software is and then comparing the features/pricing of the best tools on the market. This guide aims to help you cover all the bases! 

Coming Up

What are the 5 Best Reconciliation Tools?

What is Account Reconciliation Software?

Why is Account Reconciliation Important?

How to Choose the Best Reconciliation Tools?

What are the Benefits of Automation Reconciliation Software?

Wrapping Up

What are the 5 Best Reconciliation Tools?

Choosing the right reconciliation tool means considering both the upsides and the downsides. Let’s take a look at what some of the best tools on the market have to offer. 

1. SolveXia:

SolveXia is a Digital Work Platform for Finance Automation. Many organisations use SolveXia to automate their account reconciliations, with a critical benefit being significant (10x) gains in team productivity. SolveXia’s enterprise-grade automation suite provides data processing, reporting, data persistence, audit trails and more. It can pull information from your general ledger and disparate data sources like banks, suppliers and more to reconcile your accounts quickly. 

SolveXia is powerful with an ability to ingest data in any format and perform complex data matching. Your team can instead spend their time analysing and investigating exceptions rather than manually preparing data for the reconciliation. The software will also provide alerts and notifications for variances and exceptions and allow for workflow for staff, to correct and adjust for exceptions. 

SolveXia runs securely on the cloud and can seamlessly integrate into your current set-up. The software can be up and running fast, in less than 30 minutes, with the ability to add new users instantaneously, and can be managed and updated without tech support or coding. If you need to run SolveXia in-house and host it internally, that is also an option, but not a necessity. Furthermore, SolveXia is uniquely extensible, with an ability to automate any data-intensive Finance task or workflow.

What sets SolveXia apart most from other tools is it is more extensible than financial close vendors because it has data transformation and enrichment capabilities. You go beyond just your GL or Bank data and produce analytics using more integrated data, for example, overlap with rebates and commission calculations or management dashboards. 

Key Features

  • Automation Suite: The enterprise-grade automation suite offers data processing, reporting, data persistence, audit trails, and more. It efficiently pulls information from various sources such as general ledgers, banks, and suppliers to reconcile accounts quickly.
  • Data Ingestion and Matching: SolveXia supports ingestion of data in any format and can perform complex data matching. The system scales with business growth without compromising accuracy or speed.
  • Productivity and Efficiency: Automates the manual preparation of data, allowing the team to focus on analyzing and investigating exceptions. It provides alerts and notifications for variances and exceptions and includes a workflow for staff to correct these exceptions.
  • Security and Integration: Runs securely on the cloud and integrates seamlessly into existing setups. The software is quick to deploy, requires no tech support for management or updates, and offers an option for in-house hosting.
  • User Management: Features fast setup times, typically under 30 minutes, with capabilities for adding new users instantly and without the need for technical assistance.
  • Extensibility: Uniquely designed to automate any data-intensive financial task or workflow, offering greater extensibility compared to traditional financial close vendors.
  • Dashboards and Data Connectors: Includes executive and customizable dashboards and data connectors that reconcile data from all databases, files, and systems.
  • Smart Matching Capabilities: Offers smart matching for reconciling complex scenarios, including one-to-many and many-to-many relationships.
  • Data Persistence: The tool’s data persistence capability eliminates timing differences in transactions, facilitating easier investigations.
  • Comparative Advantage: Stands out from other tools with its data transformation and enrichment capabilities, allowing for more comprehensive analytics beyond standard financial data, such as integrating rebates, commission calculations, and management dashboards.

You can request a free SolveXia demo and get a customised quote to meet your business needs.

2. Xero:

Xero’s online accounting software allows you to see your cash flow in real-time through an easy-to-use interface. Some of its features include bank reconciliation, online accounting, invoicing, tracking inventory and paying bills. It also provides your team with reporting and links to all transactions. Xero can be accessed from anywhere with an internet connection and uses encryption to secure your data. 

The tool is well-made for mid to large-sized businesses. One of its most significant advantages is that it has unlimited users on every plan. In contrast, many other software tools will require a minimum amount of users and can cap maximums. Users can try Xero with a free trial and begin paying for a plan for as low as $27.50 a month. 

Key Features

  • Real-Time Cash Flow: Xero allows you to monitor your cash flow in real-time through an easy-to-use interface, enhancing financial oversight and decision-making.
  • Core Features: Includes comprehensive features such as bank reconciliation, online accounting, invoicing, inventory tracking, and bill payments.
  • Reporting and Transaction Links: Provides extensive reporting capabilities and links all transactions, offering your team detailed insights and easy access to financial data.
  • Accessibility and Security: Accessible from anywhere with an internet connection, Xero uses encryption to secure data and employs two-factor authentication to boost security.
  • Integration Capability: Functionality can be expanded with third-party integrations, allowing for customization and extended utility.
  • Scalability and User Capacity: Tailored for mid to large-sized businesses with the advantage of allowing unlimited users on every plan, unlike other software that might limit user numbers.
  • Affordability and Trial Option: Offers a free trial to new users and has plans starting at $27.50 per month, making it an economically viable option for businesses.

3. Blackline:

Blackline is a cloud financial close software system that aids in supporting continuous improvement in your business. Blackline has features that cover: financial close process management, including reconciliations and accounting automation. You can set up approval and review processes to ensure that your global company’s financials are accurate across different currencies and geographies. 

Blackline has helped businesses comply with industry regulations because of its capability to hold a massive amount of data and store information in various formats. To learn more about pricing, you have to get in touch with their team. 

Key Features

  • System Overview: Blackline is designed to support continuous improvement in business operations, specifically through enhancements in the financial close process.
  • Financial Close Management: Features comprehensive management tools for the financial close process, including advanced reconciliations and accounting automation.
  • Approval and Review Processes: Allows for the setup of approval and review processes, ensuring accuracy in financial reporting across various currencies and geographies.
  • Reconciliation Workflows: Offers the ability to design rule-based and configurable workflows for reconciliation, enhancing the precision and efficiency of financial processes.
  • Internal Control Enhancement: Once implemented, Blackline aids in spotting discrepancies and boosts internal control within the overall financial process.
  • Compliance Support: Assists businesses in complying with industry regulations through its capability to manage a vast amount of data and store information in various formats.
  • Pricing Information: Specific pricing details are not publicly available; interested parties need to contact Blackline's team directly for more information.

4. Bank Rec:

Treasury Software’s product Bank Rec reconciles accounts automatically through transaction management. You can set up matching rules and allow the system to do the work so your team can focus on human analytical tasks and decision-making. Unmatched records will get rolled forward until they find their match. Some of the tool’s features include: identifying, tracking and resolving matches, recording type classification, importing and automation and high-speed matching of accounts. 

With Bank Rec, there are no set-up fees, and the product can be paid for monthly through a subscription model starting at $99.95/month or purchased entirely upfront. Either way, you can include five users. 

Key Features

  • Automatic Reconciliation: Bank Rec automates account reconciliation through transaction management, reducing manual intervention and enhancing accuracy.
  • Matching Rules Setup: Allows for the setup of matching rules to automate the reconciliation process, enabling the team to concentrate on analytical tasks and decision-making.
  • Ease of Use: Features automated matching and predefined rules, making it easy for anyone to start using BankRec immediately.
  • Custom Rule Creation: Provides the capability to create custom matching rules without any need for programming, offering flexibility in adapting to specific organizational needs.
  • Record Management: Unmatched records are rolled forward until matched, ensuring comprehensive and continuous account reconciliation.
  • Tool Features: Includes functionalities such as identifying, tracking, and resolving matches, recording type classification, importing, automation, and high-speed matching of accounts.
  • User Access: The system allows inclusion of up to five users, facilitating team access and collaboration within the software.
  • Cost-Effectiveness: No setup fees required, with flexible payment options including a monthly subscription model starting at $99.95 or the option to purchase the software entirely upfront.

5. ReconArt:

Like SolveXia, ReconArt is entirely web-based and can be hosted on-site, if desired. ReconArt is reconciliation software that helps businesses with bank reconciliation, credit card reconciliation, balance sheet reconciliation, financial close, accounts reconciliation, variance analysis, journal entry and intercompany reconciliation. 

You can purchase ReconArt with five minimum users starting at $1,500 a month. Unlike SolveXia, ReconArt is a software system designed for the single solution of reconciliation. SolveXia offers more automation benefits beyond reconciliation. 

Key Features

  • Platform Flexibility: ReconArt is entirely web-based and offers the option to be hosted on-site if desired.
  • Reconciliation Capabilities: Supports comprehensive reconciliation tasks including bank, credit card, balance sheet, financial close, accounts, variance analysis, journal entry, and intercompany reconciliations.
  • ERP and System Integration: Has the capability to integrate seamlessly with ERPs, platforms, and internal systems, enhancing data connectivity and utility.
  • Automation Benefits: Offers full automation for various types of reconciliation processes, which can save significant time and improve operational efficiency for businesses.
  • Dedicated Solution: Provides a dedicated, web-based account reconciliation solution suitable for companies of all sizes, focusing exclusively on enhancing reconciliation tasks.
  • Pricing and Access: Available for purchase starting with a minimum of five users at $1,500 per month, providing a scalable solution for growing businesses.
  • Specialization: ReconArt focuses solely on reconciliation.

Comparison Table

SolveXia Xero Blackline BankRec ReconArt
Overview Digital Work Platform designed for Finance and Accounting that automates reconciliations and other data-intensive financial tasks, significantly boosting team productivity. Online accounting software that provides real-time cash flow monitoring through an intuitive interface. It includes features like bank reconciliation, invoicing, inventory tracking, and bill payments. Financial close software that provides financial close process management and accounting automation. Automates account reconciliation through transaction management, allowing teams to focus on analytical tasks. Web-based reconciliation software that supports various reconciliation tasks, including bank, credit card, balance sheet, and intercompany reconciliations.
Level of Customization High Moderate Moderate Limited Moderate
Integration Method APIs, custom connectors API library Direct connectors, APIs Direct connections APIs
Rating on g2.com
4.7 stars 4.7
4.3 stars 4.3
4.5 stars 4.5
N/A
3.3 stars 3.3

What is Account Reconciliation Software?

Bank account reconciliation software centralises the financial close process and automates it for businesses. The software pulls data from the general ledger and compares it to bank statements and invoices to quickly reconcile accounts. Then, the software allows the preparer to electronically sign off upon completion and send it over to the approver for a final review. Once it’s approved, the software stores the data in the centralised database and provides your business with a secure audit trail. 

Most software systems allow for teams to upload supporting documents, view company policies, electronically sign off on reconciliations and leave comments, if needed. It also allows for controls to be set up so that processes are gated between employees for audit and compliance requirements. Additionally, the tool may provide users with a dashboard or a visual representation of current financial standing. 

Why is Account Reconciliation Important?

Account reconciliation is a surefire way to ensure that your company’s transactions match what third-party documentation reports, such as bank statements and credit card statements. It is critical to close the books each month without errors. 

By performing account reconciliation, you can be confident in your business’s financials. Account reconciliation serves many purposes, including: 

  1. Accuracy: Makes sure that transaction records and documentation are correct. 
  2. Compliance: Since financial data is used for financial statements, you must comply with regulations by ensuring statements are accurate. 
  3. Fraud Detection: Comparing internal and external documentation offers a way to spot fraud before it may spiral too large to contain. 
  4. Financial Integrity: Stakeholders rely on financial statements to understand how the business is performing. Account reconciliation helps improve stakeholder confidence by upholding financial statements’ integrity.  
  5. Preventive Action: With the ability to locate fraud or mistakes early on, businesses can prompt rectify issues, resulting in fewer losses and problems down the line. 

How to Choose the Best Reconciliation Tools?

When looking for reconciliation software tools, you’ll want to make sure the following features are included:

  • Reporting: A statement can be produced to highlight any records that are unmatched between the GL and bank statement. The system should also be able to compare financial reports from previous historical periods in time. 
  • Issue management: If there’s an issue, the tool should identify the exception and be able to roll the forward problems into subsequent periods until it’s been resolved. You can also leverage a clean-up method to resolve issues manually. 
  • Transaction matching: This is the crux of the tool. Here, the data can be pulled from various sources, compared and matched. You can establish matching rules for each account separately or create company-wide matching policies. You should also be able to define tolerance levels for a variance. 
  • Classification: Records should be able to be classified and attributed to their type classes during the matching process. This could be performed manually or automatically. 
  • Automated data import: Look for a tool that can automatically pull data from bank statmeents, invoices, and the general ledger. This is important because not only does it save time, but it also reduces mistakes.
  • Audit trail: The software should be able to store every action taken during the reconciliation process to comply with regulations.
  • Security: As a primary concern, the tool should protect and securely store data to prevent breaches and hacks.
  • Scalability: As your business grows, so does your transaction volume. Find a software that can keep up with this growth, which means that it won’t slow down as it has to compare more data and line items.

What are the Benefits of Automation Reconciliation Software?

Account reconciliation software saves your team time. More than saving time, it offers many necessary businesses like providing consistency, accuracy and clarity plus it reduces compliance risk, which can ultimately save you money, prevent fraud and maintain your entire company’s reputation. 

Here’s a look at some of the significant benefits of account reconciliation software

  • Fully automated and fast: One of the essential benefits of reconciliation software like SolveXia is that it is fully automated. This makes it easy to complete the financial close process in no time. Many finance teams spend the majority of their time inputting data, trying to understand variances and wasting time on manual and repetitive tasks. With account reconciliation software, the process is managed automatically, freeing up your team to focus on high-level work, while improving accuracy and insights while improving controls and reducing audit risks. 
  • Uniform approach / standardised process: The reconciliation process should happen monthly. At the very least, it will take place quarterly, so it helps to standardise the process to ensure its accuracy. With account reconciliation software, the system will run reconciliations according to the automated process the same way, every time. This is particularly useful if your reconciliations take data from different systems, and there is complex and varied mapping and data cleansing involved. Reconciliation software removes automated this process, saving time and improving accuracy. 
  • Reduce errors & enhance internal controls: Reconciliation software allows for enhanced internal controls because leaders and stakeholders can see how the process is functioning and rest assured that it’s running smoothly every time. It also prevents any actions outside the process, while alerts can also be set-up for any unusual variances or activities. By reducing manual human inputs, and with automatic mapping, you are also able to reduce errors. The software is trained to be accurate, which will prevent many potentially costly mistakes from occurring, while alerts will help identify problems as they happen in real-time. 
  • Recorded history: The software stores all data history and reconciliations. This is useful not only for audit trails and compliance but also for historical information. You can check in on how much something costs in the past and help to forecast future expenses. This way, you can better budget and manage financials in your business. 
  • Delegated responsibilities: With account software, you can assign roles and manage access controls. In this way, every person on your team is aware of their position and responsibilities. When reconciliation needs to go through an approval process, then the system will automatically assign the next step to the approver as required. 
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Wrapping Up 

Ultimately, any business will have to perform financial close and account reconciliations. As a public company, these processes are highly regulated, and if done incorrectly, could cost you your business. For small and large companies alike, performing accurate reconciliations can reduce fraudulent charges and help identify mistakes in financial processes. Having an up-to-date view of your business’ cash flow is directly correlated to making wise business decisions. 

All in all, using an account reconciliation tool will save your team time, allow every person to understand their role and responsibility better, and provide you with a convenient and secure location to store recorded financial history. 

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