There’s a lot of moving pieces, including massive amounts of data, in the account reconciliation process. With automated reconciliations, your team can save time, maximise productivity and reduce compliance risk.
There’s really no reason why not to use reconciliation tools, so let’s talk about all the reasons why you should be incorporating this technology within your organisation and how to do it seamlessly.
Account reconciliation is the process of matching your organisation’s general ledger and its respective financial statements with external financial statements, like bank accounts and credit cards, for example.
This process is naturally time-intensive and requires utmost attention to detail. It’s been reserved for bookkeepers and accountants, but with bank reconciliation automation, software can handle the heavy lifting. In turn, your valuable employees can use their time more wisely by applying their expertise to business challenges and solutions, rather than the tedious and repetitive tasks of reconciliations.
If you’re working in finance, then account reconciliation is typically regulated and mandatory. But, even if it weren’t, most businesses would still choose to perform this duty because of its immense benefits, namely:
The extensive use cases for finance automation software can be traced back to robotic process automation (RPA). Robotic process automation is the driving force and technology that makes it possible for computers and software to perform repetitive tasks. In most cases, there’s barely any need for human intervention once the software has been trained on what to do by following a human’s pattern.
RPA robots capture data, can trigger responses and also integrate with other systems and communicate inputs to reap outputs. They can log in, copy and paste data, move files, fill in form fields, and pull structured data from existing documents or browsers, to name a few functions.
Their main application is for repetitive tasks that happen continuously and have expected outcomes. This is why RPA is so perfectly fitting for financial departments. Most of the daily duties of any finance team is filled with manual, repetitive, data-heavy and timely responsibilities. RPA alleviates these tasks and manages them so that your human workforce can focus on more pressing measures.
RPA bank reconciliation automates the bank reconciliation process. It applies RPA so that the software can pull data from your financial statements and compare it easily with external data sources, like bank statements.
With automated reconciliation, you can expedite the financial close process. Furthermore, you can rest assured on the accuracy of the data because there’s no possibility of human error. Accountants are able to quickly compare statements and are alerted if there’s any anomalies. The system will trigger human intervention if there’s any need to investigate discrepancies. Humans work with the system to upload documentation, if needed, to resolve any mistaken records.
There’s a lot of different accounts to manage when running a business. Whether you’re dealing with various currencies, a multitude of suppliers, direct payments or the like, automated account reconciliations can be utilised for whatever type of reconciliation process you may need. No matter the frequency and complexity, RPA helps to lighten your load.
Some examples of automated reconciliations include:
Automated reconciliations are helping finance teams be more productive. Even more so, automated reconciliations serve as one step along the journey to achieve digital finance transformation. With the ability to automate repetitive tasks, finance professionals can expand their roles as advisors and strategic business allies.
Here’s a review of some of the main benefits of using reconciliation tools:
With every external system and transaction that takes place, there is room for manual error. Manual reconciliations turn out to be one of the most time-consuming, and in turn, costly processes that companies must perform.
What’s worse is that most of the time, this effort is spent matching transactions that are actually correct. In which, time feels ever more wasted.
Besides the error-prone risk of a manual reconciliation process, your organisation may also suffer from:
With any change to your organisation’s processes, there will be a required amount of effort, investment and buy-in. However, once you pass the initial hurdles of buy-in, you’ll be able to show ROI practically immediately.
To get started with automated reconciliations, here’s a checklist of steps to keep in mind:
Account reconciliation is a necessary process in organisations. As such, it’s not going anywhere. But, the time it takes to complete manual reconciliations can be allocated optimally by implementing automated reconciliations. Automation tools like SolveXia can help you pull all that data you need, match transactions rapidly and only alert your employees when an exception or variance is present. Most importantly it saves time, improves accuracy and gives clearer insights for better business decisions.
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The balance sheet reconciliation process can be streamlined and standardised simply with the use of financial automation solutions.