At the end of a fiscal period, it is essential to match the money earned or spent with the actual money that is entering or going from the account. And, this elementary accounting process is known as reconciliation, which individuals and companies rely on to check for fraudulent activities if any, and avoid errors in their financial statement. Reconciliation process of the accounts is an essential activity which the individuals perform at frequent intervals like monthly, quarterly, bi-annually or yearly, as a part of their typical procedures of accounting.
Irrespective of their size, every business organization small, and large, accounting reconciliation is mandatory. It is a tedious process for the finance department or a small business owner to perform accounting reconciliation weekly, or daily. It is not uncommon for small and mid-size businesses to neglect their accounts unlit they receive their monthly statements. Or, even large scale industries allowing sales, purchases and payments slip through the cracks. And, bank reconciliations are even more challenging.
Robotic Process Automation or RPA Services has the potential to transform the way you work. A cloud-based digital workforce that is capable of performing manual accounting reconciliation tasks for you, which work all day and all night, matching your bank statement and general ledger is known as Robotic Process Automation.
The different types of account reconciliation tasks the software robots can perform
- Checking the loans coming into the business
- The money which is going out of the account like, expenses, waybills and wages
- Monitoring of any entry of duplicate payments
- Matching the receipts for debit and credit card transactions
- Checking the money that is entering the account from customers and other sources
- Reconciling the general ledger software
- Checking line items of the bank statement against the general ledger
- Month-end account reconciliation
- Validation of the payments in the accounts
The Benefits of Automating Account Reconciliation
RPA services are the game changers for every company. Potentially, RPA Services can a lot of money and time. Apart from saving time and money, Automating Account Reconciliation has many benefits, that helps every business, irrespective of their size.
• Manual checking and matching of accounts with the bank and general ledger are not only a tedious job, but it is very time-consuming. Automating Account Reconciliation is hassle-free and saves time and money.
• There are several crucial accounting tasks other than account reconciliation which the finance team of the company can focus on, then wasting valuable human resources, time and money on doing the same manually.
• Manual speed cannot match up to the speed of the robots. Automating Account Reconciliation speeds up the work process, allowing you to perform more significant tasks in the same amount of time.
• When an individual is doing the accounting reconciliation, there are chances that there may be some minor errors, if not anything significant. And, mistakes can lead to drastic differences in the financial statement of the company, at the end of each fiscal period. Use of Automating Account Reconciliation ensures that there are no errors due to duplication of any entry.
• Automating Account Reconciliation also is very accurate. Every entry, keeping track of the money going out of the bank account, the money that is entering everything is particular; hence fraudulent activities are minimized or next to nil.
The benefits of Automating Account Reconciliation does not end here. Additionally, Automating Account Reconciliation leads to the following process. The additional work processes work perfectly in sync with account reconciliation while adding the benefits of automatic reconciliation.
• Very accurate invoicing
Ensure that your customers do not receive a bill which is already paid. Many times, customers complain of receiving invoice they already paid. It is not only frustrating but harassing also, and this mistake is easily avoidable by automatic invoicing after automatic reconciliation. Invoice created after each sale is instantly updated after the receiving of the payment from the customer. The addition of automated invoicing after Automating Account Reconciliation ensures that the bill sent on behalf of the services provided by your company is accurate, and the customers who owe money will only receive the bill.
• A simplified reporting
Now, you will never miss an update once the bot is scheduled to create financial statements on the automated schedule. Once the accounts are accurately reconciled, the reports are ready. The accurate and available reports are flawless and ready for submission to the government, board members of the company and other relevant parties.
• A tax-accounting worry-free
Whenever the time comes to pay the taxes, the accurately reconciled reports allow the concerned department handling the taxes to handle it with ease. And since there are no errors in the prepared statement by the bot, the tax payment is also accurate. The reports prepared by the bot is error-free, exact with well-managed data, and analyzed, compliant with the government tax rules and regulations.
• Workings of Automating Account Reconciliation
The Automating Account Reconciliation is fully automatic and does not require any manual operations. The bot performs several tasks to performs the accounting reconciliation. The functions performed by the bot are:
- Cross-referencing the bank balances with the general ledger
- Logging in with multiple bank accounts
- Preparing and sending of bank reconciliation statements for personnel
- Extraction of relevant ledger items
- Logging in to the business’s enterprise resource planner
RPA Solutions for Banking ensures that instead of spending hours every week balancing and checking the business chequebook, you can utilize the time, money and energy in focusing on bringing in more business for your company. Let the bots do time-consuming and tedious work of accounting reconciliations and send you a report of the same. The bot will also notify the right personnel if it finds any errors in the accounts. The bot will also send notifications for correction of the same mistakes, to the right personnel. As the bot work on predefined programs, the chance of the bot making a mistake is next to zero. And hence, the designated personnel will have few problems to resolve, allowing them to direct their focus on more rewarding, valuable and creative work.