Bank reconciliation is a necessary but often painful process that companies should regularly complete for cash management purposes. Without an accurate picture of your company’s financial state, you could end up bouncing payments, incurring late payment fees, or end up with insufficient fund charges. Your staff should be diligent in their record keeping to maintain accurate documentation, while sorting out any problems that may be found during this reconciliation process immediately.
If your company is manually conducting bank reconciliations, you should start seeking a more efficient solution. Understanding more about the process and the way your staff completes it can help your organization make positive changes to improve it.
Stop Wasting Time and Money with Outdated Methods
Your accounts payable staff will welcome any solution that streamlines your bank reconciliation process, especially if it eliminates the frustrating and time-intensive task of doing it by hand. A manual reconciliation process involves multiple spreadsheets, printing current and past bank statements, and verifying invoice data by tracking down documents in a filing room. This task could take hours, or even days to complete, and staff should do it regularly to keep up with their finances and prevent unauthorized payments from processing.
Even if your accounts reconcile perfectly every time, a manual reconciliation process can still be labor intensive. In addition, what happens if your staff discovers multiple unauthorized or suspicious transactions? The longer a fraudulent charge stands, the worse it can be for your company. Between late payment fees, bounced check fees, and the time it takes to correct a mistake with your bank, one fraud charge could have long-term effects on your finances. Automation works to improve this process; making it easy for your staff to check records, track past and present expenses, and identify fraudulent charges much faster.
What Automation Can Do For Your Company
Automating the bank reconciliation process allows your staff to verify expenses with far less error. By comparing digital financial records with invoice data, staff can quickly review, approve, and flag transactions that are unauthorized or unusual. The increased visibility that comes with automation solutions makes it easy for other staff members to check on flagged transactions and find additional payment information by accessing digital file storage. Streamlining the reconciliation process will also improve the rate with which your financial records are updated. Some automation software lets staff reconcile bank accounts with each payment, keeping records regularly updated.
Choosing an AP automation solution for invoice processing will also help here because new data is automatically checked against historic data and is flagged if anything is unusual before being routed for approval. This can drastically cut down on duplicate payments or unauthorized payments, making reconciliation even easier. Introducing an automation solution for your company’s entire AP department can have a substantial impact on your financial situation.
How Automation Improves Your Entire AP Process
From receiving and processing an invoice to successfully paying vendors on time, automation can improve your AP process from start to finish. Bank reconciliation is a record-keeping process that helps your company manage cash-on-hand and keep track of possible fraudulent charges. By leveraging AP Automation , you are helping your staff by eliminating the headaches related to tedious data entry, information tracking, and manually performing accounting duties. Automation can help your team quickly review transactions, flag suspicious charges, and store data for future retrieval. Consider automation to be your organization’s best addition to the AP department.