Why Automated Financial Reconciliation is advantageous for Businesses
By automating the financial and accounting procedure of your business, you can save 30% of time you additionally incur in manual approach.
Amongst many business operations, reconciliation is one that often becomes an uphill task for finance teams. The reconciliation woes at the end of the month or more acutely at the end of the financial year are usually accounted for by manual approach.
Manual closing of every financial period – month, quarter or year is prone to errors, sorting out which becomes a tough process and wastes the time of finance teams. Automated approach to financial reconciliation improves the reconciliation process by making it error-free.
With automated reconciliation, otherwise tedious tasks are managed efficiently, as transactions are matched accurately. Finance and accounting teams can easily drill down into open entries or exceptions; manually, this would require more attention. Overall, automated reconciliation helps Finance & Accounting teams to develop strategic and qualitative activities.
However, this is just an overview of how automated financial reconciliation is helpful. Here, we are offering a deeper insight, which will prompt you to take a positive step in the direction of adopting an automated approach to financial reconciliation.
Advantages of Automated Financial Reconciliation
With automatic reconciliation, the operations are executed faster. All cash outgoings and receipts are rapidly checked to link up bank accounts with the records held on your accounts package. Checking that totals match with your balance sheet, cash flow, capital and income statements is much faster compared with manual checking of spreadsheets.
Automatic reconciliation comes without errors – highly likely in manual processes. Finding an anomaly by seeking through different spreadsheets or paper-based accounts records is tedious, and is therefore likely to be erroneous. It’s easy to miss a sum or misread a figure. Not spotting the inconsistency can create a lot of extra work, as the Finance & Accounting team tries to resolve issues in time to complete the periodical closing. Automation brings the algorithmic precision that allows any anomalies to be easily and rapidly detected.
Assurance in your accounts
Automated reconciliation provides an assurance that your accounts are reliable, since they are verified and validated. Not only your money going into the wrong account can be easily rectified but also you have the assurance that your business’s financial decisions will always be based on accurate information.
Based on accuracy and speed, automated reconciliation can protect you against fraud. Any irregularity will be rapidly found out and can be examined without delay. In case a fraud happens, it is likely to be at lower levels and therefore would cause negligible damage to the organization.
Manual reconciliation is lengthy and repetitive. But automation makes it less tiresome for staff as there’s no need to go through a bulk folder of printouts or to open multiple spreadsheets to check the data manually. This helps to keep the Finance & Accounting team motivated and satisfied, as staff is relieved of the monotonous manual work and can focus on other important tasks. Since each department is linked to the Finance department, streamlined finance operations streamline operations of other departments, making other department staff too satisfied.
Financial reconciliation using automated solutions ensures that all the parties involved have a clear understanding of the process. Automation thus makes global operations transparent. Automated financial reconciliation makes sure that each transaction that has been processed can be seen by everyone in the financial department.
Everyone can have access to the relevant information in a centralized location, which can be accessed at any time in the accounting period. This is beneficial in managing financial data for global operations or businesses with multiple entities.
Automate your financial reconciliation process
By reducing significant manhours and optimizing unnecessary spend on manual operations, Optimum Data Analytics's automated reconciliation solution offers tangible benefits.
We tailor the solution understanding the nature of your finance and accounting procedures, and create workflows that fit perfectly into them. You have a centralized platform that streamlines each financial activity, including balance sheet management, payments etc.
If you are keen to transform your financial reconciliation process, connect with us without any delay.