Top 3 ways automated reconciliation benefits every business
Account reconciliation is necessary for all businesses, large and small. Whether the small business owner or finance department head reconciles a business’s accounts weekly or three times per day, it is a necessary, and often tedious, event. How often do small business owners neglect to review their finances until they receive a monthly statement in the mail? How often do large businesses allow purchases and payments to slip through the cracks?
Often, when we think about RPA in terms of bank statements, we looks to the finance industry, but the possibilities are much greater. Using RPA to reconcile accounts is available to every business of any size.
How automated account reconciliation works
With RPA, the reconciliation process can be fully automated. To complete the reconciliation process, the bot performs the following:
- Login to multiple bank accounts
- Login to your business’s enterprise resource planner
- Extract relevant general ledger items
- Cross-reference bank balances with general ledger
- Prepare and send bank reconciliation statement for personnel
Instead of spending hours every week balancing your business’s checkbook, bots do the time-consuming processes for you and send you a report. If there are any problems, the bot will notify the correct personnel to resolve them. However, the bot itself will not make any errors within its predefined program, so there will be fewer problems for personnel to resolve. This enables personnel to focus on more valuable, creative and rewarding work.
The benefits of automated account reconciliation
In addition to giving personnel more time to focus on rewarding tasks instead of repetitive reconciliation tasks, the advantages of automated account reconciliation can result in:
- Streamlined procedures
- Time savings
- 24/7 reconciliation, which is perfect for e-commerce businesses
- Error elimination
- Constant exception management
- Consistent performance regardless of the number of transactions
- Reduced risk of fraudulent activity
However, the benefits of automating account reconciliations don’t stop there. The reconciliation process leads to the following processes. These additional processes work well with account reconciliation, and add to the benefits of automated reconciliation itself:
1. Accurate invoicing
Have you ever had a customer call and complain about a bill they received only to realize they paid it? Avoid that frustration by automating invoicing after automating reconciliation. Invoices will be created after a sale, and then updated as accounts are billed and paid. Adding automated invoicing after automated reconciliation ensures the invoices themselves are accurate and only clients who owe will receive bills.
2. Simplified reporting
You can schedule the bot to create financial statements on an automated schedule so you never miss an update. After your accounts have been accurately reconciled, your reports will be ready and accurate for the government, your business’s board and other important parties.
3. Worry-free tax accounting
Having accurately reconciled accounts and the latest reports helps your team whenever taxes need to be paid. Not only is your data managed and analyzed, but it is also completely compliant for state and federal tax regulations.
Financially closing out your business’s day, month and year is critical for many reasons. It is also an unavoidable process within every industry. Why not make it simpler, efficient and 100% accurate?
To learn more about Confiance’s RPAaaS, visit this link.