At the very least, it’s a monthly must-have, and in some cases, it’s a desirable and beneficial daily process. We’re talking about account reconciliation. You know it all too well and have likely felt the pain of the all too time-consuming process.
With the stakes so high for accuracy, efficiency, and security, account reconciliation comes to the rescue to help streamline the process and alleviate the burdens.
In this article, we’re going to look at what account reconciliation software does for your business and review some of the best account reconciliation software out there.
1. What is Account Reconciliation?
2. What is the Best Account Reconciliation Software?
3. How to Choose the Best Account Reconciliation Software?
4. What are the Benefits of Account Reconciliation Software?
Account reconciliation is accounting’s main step to close the books for the accounting period. It ensures that all business activity is properly recorded and accurately reflected in the relevant statements.
Account reconciliation requires the cross-checking of the general ledger and its sub ledgers with external statements such as those from banks, payment processors, credit card companies, and the like.
This process is crucial to be able to close accounts and generate your balance sheet and profit & loss statements.
Without its proper execution, your business runs the risk of incorrect statements (and thus, the following business decisions made based on wrong data), as well as the major risk of fraud or the consequences of non-compliance. Suffice it to say, account reconciliation is an aspect of business that has no room for error.
With these high stakes in mind, you’ll quickly come to realise that account reconciliation automation is like having a magic potion. With account reconciliation software, you and your team no longer have to spend countless hours collecting, organising, cleansing, structuring, and matching data manually.
We’ll soon cover all the benefits of reconciliation automation, but before we do, let’s take a look at some of the best account reconciliation software.
SolveXia is a low-code automation, data management, and analytics software that maximises your business’ productivity and drives operational excellence.
Equipped with intelligent automation capabilities, SolveXia connects and combines your data from any source, including legacy systems and spreadsheets.
With automated data transformation capabilities, you can design any workflow you want to automate using drag-and-drop components. By doing so, you prevent 98% of manual errors.
For account reconciliation workflows, the software will manage pulling together data and performing transaction matching in minutes, so you can save hours and days to better allocate your time. This is crucial especially for businesses dealing with a high volume of transactions and multiple payment providers, like Amazon, eBay, Stripe, PayPal and more.
Along with process automation, SolveXia transforms your data into usable insights that are displayed on smart and customisable dashboards so your organisation has all it needs to make business decisions at any moment.
By freeing up time, gaining access to deeper analytics, and adding the ability to run audit trails on command, your team is able to focus on high value add responsibilities rather than being bogged down by time-consuming, manual, and monotonous data-related tasks.
Xero is an online accounting software that is best utilised by mid to large-sized businesses. With unlimited users on any plan, Xero provides bank reconciliation, invoicing, accounts payable, inventory tracking features, and more.
Its bank reconciliation feature provides the ability to perform daily reconciliations with suggested matching and bulk transaction reconciliation across plans (except for Early plans).
Blackline is a financial close software that runs on the cloud and supports continuous improvement. For its financial close process management functions, the software offers an intuitive interface with templates, workflows, and supporting documents storage.
Auditors receive their own approved audit login so they can access the data they need to do their jobs.
Redwood is a workload automation platform that is cloud-native. With it implemented, users can build processes with its low-code development library of templates and wizards, trigger workflows in real-time, and integrate with existing systems.
The software performs balance sheet reconciliation and reduces the work of manual preparers by an estimated 70%.
Oracle NetSuite is a cloud accounting software that grants real-time access to financial data. NetSuite’s account reconciliation and banking integration help to improve financial record accuracy.
Anyone, with or without technical acumen, is able to work in the easy-to-use interface as it’s made for medium-sized businesses. That being said, the software doesn’t offer the most robust support options, so there may be a learning curve.
NetSuite intends to help organisations streamline their business operations, and does so by providing analytics, supply chain control, distribution management, budgeting functions, financial automation, and HR capabilities.
ReconArt is a web-based (or on-site) software solution that can manage bank reconciliation, balance sheet reconciliation, credit card reconciliation, accounts reconciliation, intercompany reconciliation, and the like.
ReconArt is a powerful reconciliation tool, but that’s its only function. On the other hand, if you’re looking for a software solution that can handle account reconciliation, along with automating other business processes, providing insights, and more, then SolveXia would be your best bet!
When browsing for account reconciliation software, you’ll likely wonder how you’re supposed to choose the best option where there are so many choices.
We’ve put together this guideline to help you sort out your thoughts:
Cloud-based software-as-a-solution (SaaS) tools are sought after because they allow for anyone, anywhere to access the data and information that they need to complete their tasks. Along with the access elements, cloud-based software is equipped for easier updates, better security, and fast deployment.
Across many software solutions, you’ll find the ability to customise dashboards and automate reports. This feature is incredibly helpful to help teams collaborate and remain up-to-date with the information they need. It also provides immediate visibility and makes it easy to understand data.
Since many people are involved in the account reconciliation process, you’ll want a tool that anyone is capable of using and understanding quickly. With the various data reconciliation techniques available, you can select and design your own workflows.
Task flows make it possible to manage the sequence and review of processes. The tools also ensure that you can retain a history of your reconciliations, just as if you had a filing cabinet with a paper trail.
Account reconciliation software is stacked with benefits, including:
No matter how equipped and talented your team is, the chance for human error looms large when dealing with data.
This is increasingly true in businesses with growing transaction volumes and those that use multiple payment processors. Automated account reconciliation removes the need for manual and repetitive tasks.
Account reconciliation takes a lot of time and can be draining on your human resources. Without the manual effort that instead gets replaced by account reconciliation automation, your team is able to maximise their productivity levels for the account close process, along with their day-to-day tasks.
Since your team will no longer have to double or triple check their work and can automate the otherwise time-draining tasks of account reconciliation, they can instead allocate this time to greater value add responsibilities that drive the business forward.
It’s paramount to protect your data, especially when it comes to finance. Software systems are equipped with top-tier data security. Take SolveXia’s bank-grade security for example.
Reduced processing time means lower operational costs which means lower overall expenses for the business.
No matter your business, account reconciliation and the financial close process is a critical aspect and non-negotiable aspect of doing business. As such, the implementation of account reconciliation serves as a complete game changer.
The software will save your business time, add visibility to your processes, protect your data, and alleviate stress.
To see how account reconciliation software like SolveXia can be easily implemented and start benefiting your business right away, book a demo.
Balance sheet reconciliations are needed in every business. Here's a guide when you’re looking to streamline balance sheet reconciliation.
Account reconciliation software streamlines your workflows and reduces the chance for error. Take a look at the best solutions available.