Every organization has to perform regular or monthly reconciliations to insure the accuracy of financial reports. When performed manually, without the use of reconciliation software, the process is incredibly tedious and time-consuming and has a higher risk of errors. Not to mention, the lengthy process takes your accounting team away from other important projects, including managing reconciliation exceptions.
Luckily, modern reconciliation software resolves the problems presented by manual reconciliation. This software saves time, eliminates the risk of human error, and frees up your team to focus on managing any exceptions. Read on to learn more about how reconciliation software can help your company save money.
1. Save Time. Time is money. By automating your reconciliation process, your organization can save valuable time and money. Compared to manual reconciliation, which can take an entire day or more, automated reconciliation takes minimal time. Reconciliation software automates every step of the process, from importing files and matching data to generating reports. The software allows your team to reconcile in real-time, reducing pressure at the month-end and freeing up time to investigate exceptions.
2. Eliminate Human Error. Nobody's perfect, and human errors are going to occur from time to time. However, reconciliation software eliminates the risk of human error. Since the entire process is fully automated and requires no handwritten work, there's no risk of transposing data incorrectly. And, since data will be submitted correctly the first time, there will be no wasted time trying to identify a manual error.
3. Focus on Managing Exceptions. The most important part of reconciliation is investigating exceptions. During this stage, errors, deviations and fraud are detected and corrected. However, the right items have to be matched up before you can arrive at this stage. Rather than spending ample time and resources on matching data, reconciliation software allows your team to focus on managing and correcting exceptions.
As you can see, manual reconciliation has many hidden costs. It wastes valuable time and resources and increases the risk of human error. For a more efficient reconciliation process, invest in reconciliation software.
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