Account reconciliation is a mandatory business process. While each company has its own procedures, it follows a fairly standard process for comparing transactions between books and reports to ensure the financial accuracy of the accounts. Reconciliation tools help teams maximize productivity and save time for a highly timely reconciliation process.
What is account reconciliation software?
Software for reconciling bank accounts centralizes the financial closing process and automates it for businesses. The software extracts data from the general ledger and matches it against bank statements and invoices for quick account reconciliation. The software then allows the creator to exit electronically upon completion and send it to the approver for final review. Once approved, the software stores data in a central database and provides a secure audit trail for your company.
Most software systems allow teams to upload supporting documents, review company policies, exit electronically for approval, and leave comments as needed. It also allows controls to be set up to manage processes between audit staff and compliance requirements. In addition, this tool can provide users with a dashboard or a visual representation of the current financial situation.
Which functions should be included?
When looking for a software reconciliation tool, make sure it includes the following features:
Reporting: Reports can be created to highlight any record that has no correspondence between the general ledger and bank statements. The system must also be able to compare financial statements from previous historical periods over time.
Problem management: When a problem occurs, the tool should identify the exception and be able to move the issue forward within the following time frame until it is resolved. You can also use the cleaning method to solve the problem manually.
Transaction Compliance: This is the core of this tool. Here data can be extracted, compared and compared from various sources. You can set matching policies for each account individually, or you can create matching policies company-wide. You should also be able to define a tolerance limit for the deviation.
Classification: It should be possible to classify data records during the matching process and assign them to their class types. This can be done manually or automatically.
5 best tools for reconciliation
When choosing the right reconciliation instrument, gains and losses must be taken into account. Let’s take a look at what some of the best tools out there have to offer.
SolveXia is a digital work platform for financial automation. Many companies use SolveXia to automate their account reconciliation, with the main benefit of a significant increase (10x) in team productivity. SolveXia’s enterprise-grade automation kit provides data processing, reporting, data consistency, audit trails, and more. It can extract information from your general ledger and various data sources such as banks, suppliers and others to quickly reconcile your accounts.
SolveXia is powerful with the ability to record data in any format and perform complex data reconciliations. Instead, your team can spend time analyzing and investigating exceptions instead of manually preparing data for reconciliation. The software also provides alerts and notifications about deviations and exceptions, and enables staff workflows to correct and correct exceptions.
SolveXia runs securely in the cloud and can be seamlessly integrated into your current setup. The software can be up and running in less than 30 minutes, with the ability to add new users instantly, and can be managed and updated without technical or programming support. If you need to run SolveXia in-house and host it in-house, this is also an option, but not a requirement. In addition, SolveXia is uniquely extensible and offers the ability to automate any financial task or any data-intensive workflow.
What sets SolveXia most apart from other tools is that it is more extensible than financial related providers as it has the potential to transform and enrich data. You go beyond your GL or banking data and create analytics with more integrated data like discount and commission overlays or dashboards.
You can try SolveXia for one month for free and receive personalized offers that meet your company’s needs.
Xero’s online accounting software allows you to view your cash flow in real time through an easy-to-use interface. Some of its functions include bank reconciliation, online accounting, invoicing, inventory tracking, and bill payments. It also provides your team with reports and links on all transactions. Xero can be accessed from anywhere with an internet connection and uses encryption to protect your data.
This tool is perfect for medium and large companies. One of the most important advantages is the unlimited number of users on each plan. In contrast, many other software require a minimum number of users and may limit the maximum value. Users can try Xero with a free trial and pay for the plan for just $27.50 per month.
Blackline is a financial cloud closing software system that helps you continuously improve your business. Blackline has capabilities that include: completion of financial processes, including reconciliation and accounting automation. You can set up an approval and review process to ensure that your global company finances are correct for different currencies and geographic areas.
Blackline has helped companies comply with industry regulations because it can store large amounts of data and information in a variety of formats. To find out more about pricing, you need to contact the team.
Recommended by banks:
Treasury Software’s Bank of Rec product automatically reconciles accounts through transaction management. You can set appropriate rules and allow the system to do the work so your team can focus on that person’s analytical and decision-making tasks. Records that do not match are updated until they match. The tool’s capabilities include: identifying, tracking and resolving matches, classifying record types, importing and automating, and high-speed account reconciliation.
There are no setup fees with Bank Rec, and products can be paid for monthly via a subscription model starting at $99.95/month, or pre-purchase in full. In both cases, you can include five users.
Like SolveXia, ReconArt is completely web-based and can be hosted on a site if desired. ReconArt is a reconciliation software that helps companies with bank reconciliation, credit card reconciliation, balance sheet reconciliation, financial closing, account reconciliation, analysis of variance, journal entries and intercompany reconciliation.
You can purchase ReconArt with a minimum of five users starting at $1,500 per month. Unlike SolveXia, ReconArt is a software system designed for the only reconciliation solution. SolveXia offers other advantages of automation besides comparison.
Advantages of auto-negotiation software
Reconciliation software saves your team time. Not only does it save time, it gives businesses much-needed consistency, accuracy and clarity, and reduces compliance risk, which in turn can save you money, prevent fraud and protect your entire company’s reputation.
Following are some of the significant benefits of reconciliation software.
Fully automated and fast: One of the main advantages of voting software like SolveXia is that it is fully automated. This makes it easier to complete the financial close process in a short time. Many finance teams spend most of their time entering data, understanding differences, and wasting time on manual and repetitive tasks. Reconciliation software automatically manages processes so your team can focus on high-level work while increasing accuracy and insight, increasing control, and reducing audit risk.
Uniform approach/standard process: Arbitration proceedings must be conducted on a monthly basis. At least it will be done quarterly so it will help standardize the process to ensure its accuracy. With reconciliation software, the system reconciles in the same way every time, according to automated procedures. This is especially useful if your reconciliation contains data from different systems and has complex and varied data mapping and cleaning. Coordination software automatically eliminates this process, saving time and increasing accuracy.
Reduce errors and improve internal control: Coordination software allows for improved internal control because managers and stakeholders can see how processes are working and can ensure that everything is running smoothly. It also prevents out-of-process actions, while signals can also be set for irregularities or unusual activity. By reducing manual human input and having automatic mapping, you can also reduce errors. The software is trained for accuracy, which avoids many potentially costly errors, while alerts help identify problems in real-time as they arise.
Recorded history: The software keeps the entire history of data and reconciliation. This is useful not only for audit trails and compliance but also for historical information. You can check how much something has cost in the past and predict future expenses. This allows you to better plan your budget and manages company finances.
Delegated responsibilities: Account software allows you to assign roles and manage access controls. That way, everyone on your team is aware of their position and responsibilities. If approval must go through an approval process, the system automatically assigns the approver to the next step, if necessary.