The manual reconciliation is a tried-and-tested method and more than half of the companies in the US still take the manual approach when it comes to reconciliation. However, this method is prone to human errors.
The automated reconciliation of your bank accounts can take one of the most time-consuming tasks in the accounting department and make it faster and efficient.
But, not every company is ready to make the switch yet. The prime reason being the cost of the new automated system and the time it will take to train the employees to be familiar with the new technology.
The reasons are valid as every company has its own needs and no one software will fit the requirement of every business.
One way to know if your business needs a reconciliation software is to start with assessing your business needs to understand where the automation can help.
Once done, evaluate the available software options and then focus on the training part as the rollout of the new automated system begins.
There are many automated reconciliation software available in the market today. So which should you choose for your business? If you are confused in software selection, we can help.
In this article will help you in finding the best automated reconciliation software solution to modernize finance and accounting functions for greater productivity.
BlackLine Account Reconciliations
BlackLine’s automated Account Reconciliation software allows you to standardize, control and streamline reconciliation process. It is a cloud-based solution and provides an intuitive interface for performing account reconciliation.
The account reconciliation process includes standardized templates, approval, and reviews, linking to procedures and policies and workflows for preparation. The integration option allows you to store supporting documents on the cloud.
It reduces the possibility of human error in a paper-based manual spreadsheet by maintaining proper segregation of duties. Which also include automatically adding new ERP accounts and creating post-certification for unprecedented transparency into the accounting process.
The users can see the details of account reconciliation and add text fields and upload supporting documentation. The dashboard shows the completion status of account reconciliation for a quick preview.
The BlackLine Reconciliation is an excellent reconciliation product which is easy to deploy as well as learn. However, better user documentation can make the software more user-friendly.
ReconArt Reconciliation Solutions
ReconArt offers reconciliation software solution and management suite. It is a cloud-based solution that helps to streamline your finance and accounting reconciliation process increasing workflow and productivity.
ReconArt’s solution comes with tools that offer powerful functionalities to operate at new levels of efficiency. You can automate routine and high volume scenarios.
Other benefits of ReconArt Reconciliation solution includes the ability to recapture and redirect team bandwidth, reduce time-to-complete windows and increase accuracy and decrease risk.
One of the core elements of the software is scheduling. It allows you to schedule activities and actions using an easy-to-use calendar. It can also automate the data importing, mapping and enrichment process, automate execution, allocate codes for automated reconciliation status, add items exceptions, send alerts and notifications and data extraction,
ReconArt Reconciliation software is an easy to use solution with high-performance and comes with the flexibility of scaling to meet your business needs as it grows.
Xero is a cloud-based account management solution ideal for Startups and small and medium-sized enterprises (SMEs). The could based solution can also be used on smartphones using the app or through a web client.
Xero is more than just an automated reconciliation software; it offers the tools to process invoices and quotes, manage inventory, manage purchase orders, bills and expenses, and third-party app integration to import data from your other management solutions.
You can customize the Xero experience by integrating it with specialized software for your business using services like PayPal, Shopify, Expensify, Deputy, Gusto, Squarespace and more for point-of-sale, time tracking, ecommerce and more.
The online dashboard allows you to monitor cash flow with charts and graphs, customize reports, see details about your bank accounts and credit card, follow up on outstanding invoices, monitor your sales and specific parts of the business.
For the reconciliation process, Xero automatically imports bank transaction every working day, set up rules to match bank transactions automatically to invoices, create routines, group similar transactions and match them in one go and more.
With Xero, you can add an extra layer of security to protect sensitive information, track project times and spendings, create and check inventory items, pay bills, and run unlimited payroll across all the 50 states using Gusto.
Xero is not just an automated reconciliation software but a finance and account management solution that is easier to use, faster in task processing and reliable.
Statement Reconciliation is a cloud-based automated reconciliation software solution that is available for Windows computers as well. It is an ideal solution for startups, SMEs, Agencies, and enterprises.
Statement Reconciliation comes equipped with tools to keep track of credit notes, payment dues, miss-posting and send notifications and alerts offering a proactive approach towards cash flow.
Where other conciliation software requires you to upload suppliers document, Statement Reconciliation takes it one step further and allows the suppliers to access and reconcile their own statement, view the status of the invoices and leave comments using the online portal.
The software reconciles the statements by company and vendor using the invoice date, number, amount and currency details. You can also use it with cross-company and cross-vendor in case the supplier has multiple accounts on your system.
Statement Reconciliation uses a checklist of rules to reconcile the statement and allocate an overall status for the statement and each line. Some of the status and its purpose are listed below.
- Fully Matches status means the software did not found any duplicate entries.
- Fully Matches with Data Mismatches hints at the correct statement but some lines have data discrepancies.
- The Unpaid Item Missing on Statement means unpaid invoices on your ledger are not quoted on an otherwise fully matched statement.
Statement Reconciliation offers a live demo showing the working of the reconciliation process and features on request. You can request the demo from the official website.
Bank Rec (Treasury Software)
Bank Rec is an automated reconciliation software that you can download and install on your computer. It allows you to perform high speed automated matching with their predefined rules.
Bank Rec uses Automated Transaction Matching engine matches bank records to internal records. You can select matching rules such as issue-to-issue, check-to-check and user-defined, for each account.
The Reconciliation Wizard offers reconciliation reports that satisfy Sarbanes-Oxley 404 act. It can also generate period sensitive reconciliation reporting that includes historical reports with all the necessary details. The reports can also be exported to Excel.
Using exception reporting, you can identify why a record didn’t match with your ledger with a set of predefined rules. Further, you can track unmatched items and resolve the problem by matching exceptions using Point and Click matching window.
Bank Rec uses Type Classes as an attribute during matching to achieve the highest possible matching rate. You can import Excel and CSV files or simply copy and paste them for easier imports. It also supports BAI files, SQL insertion, and QuickBooks integration.
Bank Rec is an offline automated reconciliation software that can free your employees from the time consuming manual reconciliation task and make them focus on exceptions.
Automated Reconciliation software can help you with the factors such as data availability, different data formats, lack of transparency in the process, data matching issues and complexity of data, that often create problems during transactional matching which is the most strenuous part of the reconciliation process.
The reconciliation process may never go fully automated, but these reconciliation software surely will help you to increase the workflow and make your staff more efficient with less human errors.
Reconciliation automation may not be perfect and still requires humans for exception management. But, it can immensely affect your workflow depending on your business and help your staff to be more productive.
Take a look at our recommendations for the top automated reconciliation software and request for a demo from the company to understand if it can help you manage your business in a better way.
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Editor’s Note: This post was originally published in January 2019 and has been since updated for freshness, and accuracy.