Picture this: it is the end of the month, your accounting team is scrabbling away to close the period. Employees are tired and overworked as a result of hours staring at Excel spreadsheets performing the manual reconciliation of thousands of transactions.
Does it sound familiar?
Accountants aren’t the only ones under pressure. CFO’s are also under increased expectations to improve the closing process and reporting.
Account reconciliation is often the bottleneck standing in the way of a timely financial close. The ever-growing volume of transactions and data sources is only exacerbating this problem.
It often results in employees being asked to work faster, or extra hours to accelerate the close and reporting cycle, but that not only leads to increased burnout and employee turnover, but it can also compromise the integrity of the numbers.
We know the month-end close process can be chaotic with information from multiple systems and activities that needs to be consolidated, reconciled, and adjusted before the books can be closed. But it doesn’t need to be this way. Technology can and should be used as an ally.
Today’s technology can automate the account reconciliation process, ensuring a faster closing time while improving the accuracy of the numbers.
Sounds too good to be true?
By enlisting the help of an automated reconciliation software, a smooth-running account reconciliation process can become a reality.
An automated reconciliation software undertakes the bulk of the reconciliations by applying a business-defined logic (your business-defined logic). It can match up to 90% of transactions automatically. It means saying goodbye to hours working in scattered spreadsheets, matching each entry manually.
Your accounting team can now focus and quickly address the extra-ordinary entries, errors, discrepancies and missing payments flagged by the software.
CFO’s on the other side can now have higher visibility into the company numbers due to a faster closing and reporting cycle. It’s a win-win.
Not convinced yet? Here are some of the key benefits of automating your account reconciliations:
No more manually inputting information into an Excel spreadsheet. The latest reconciliation software integrates with ERP systems and accounting software like SAP, Oracle ERP, Microsoft Dynamics, Xero, to list just a few. It also integrates with your company’s internal systems to ensure automated data collection and prevent data manipulation.
An automated reconciliation software supports transactional data from various sources and applies pre-defined business-rules logic to match thousands of records in minutes. With the bulk of transactions automatically matched, the team can now focus on the extra-ordinary entries and detect errors faster.
Reconciliation processes and other tasks are run based on a pre-authorized schedule: daily, weekly or monthly according to your business’ needs. Any outstanding entries will be flagged so the accounting team can quickly address it.
Real-Time Dashboard Reporting
Say goodbyes to hundreds of scattered spreadsheets. Now your company’s financial information is consolidated into a one-single dashboard.
Equipped with a high level of financial visibility, CFOs can make informed decisions faster, a competitive advantage in today’s fiercely competitive business environment.
An automated process secures full traceability and compliance. First, by consolidating the company’s financial data into one single place. Secondly, by creating an audit trail that shows what has been done, by whom and when.
Account reconciliations have been a painful process for as long as we can remember. But technology can come to our aid by providing an easier, more efficient way to perform account reconciliations.
An automated reconciliation software can significantly impact the hours spent in the process and leave more time for the analysis of extra-ordinary entries, discrepancies and errors. The result is a faster close, accurate numbers and a lot less stress for the whole team.
Curious about how an automated reconciliation software can positively impact your business financial close? Schedule a demo today.