Automating the reconciliation process of corporate accounts can boost the speed of one of the most time-consuming tasks in any finance and accounting department. Without a doubt, manual reconciliation is the least efficient process in a company. Still, many medium to large organizations manually reconcile thousands of accounts during the quarter-end or month-end. More than 6 in 10 companies rely on manual methods to determine whether adjustments are needed. This exposes the organization to missed or lost reconciliation’s, non reconciled accounts, and lack of justifiable data.
Yes, Excel is great at some tasks, but it also has many limitations which make it prone to mistakes. Excel can become cumbersome at times, especially when you have to deal with a hundred different account tabs introducing complexities due to multiple simultaneous users. At the end of the day, manual interception can induce errors up to 1 to 2%. To protect the organization from committing any expensive errors, finance departments have increasingly recognized the need for an automated account reconciliation platform.
Where does automated reconciliation help
Automation can help to simplify and expedite corporate reconciliation’s while ensuring accuracy and saving time. Repetitive tasks such as transaction matching can be taken care of by the software.
- Bank reconciliation: It helps to keep a track discrepancy in your own organization’s bank statement and that supplied by the bank. The software speeds up the process.
- Accounting for foreign currency: If you deal with multiple foreign currencies and monthly rates, the software can help convert and manage these figures, reconciling any differences.
- Approvals of the balance sheet: The automated solutions replace manual steps, enabling you to keep track of all accounts, regardless of the number of companies, banks, business, and accounts.
- Multiple company & supplier accounts: The software can handle a number of companies, currencies, and accounts thereby simplifying a seemingly complex reconciliation process.
Benefits of automated reconciliation platform
- Processes a large volume of transactions per day on a highly scalable platform.
- The system does not need a human resource to handle the responsibility.
- The system records all the data in the form of reconciliation history so that you don’t miss the trail.
- Handles all transactions and account types.
- The efficiency remains consistent irrespective of the number of companies, suppliers, banks and accounts.
Finally, the biggest benefit that can come out of automation is time-saving, which is akin to saving money in a long-term. Mindgate is a reconciliation platform solution provider, designed to simplify the reconciliation against collections and receivables… It is an end-to-end solution that loads source files, matches transactions from multiple sources, manages exceptions, resolves conflicts, generates file reports, and uploads files to hosts and interchanges.