Automated Reconciliation

Is it possible to automate bank reconciliation?

It is possible to automate bank reconciliation with the right software. The process of bank reconciliation involves going through each entry in the account statement and matching it against payments made and the payments received. The right software solution will go through all the entries from the bank statement and match them with the records your system has and the entries to identify where the payments have been made and the parties from which you have received payments.

What are the benefits of automated bank reconciliation

Automating bank reconciliation has many benefits, both direct and indirect.

Here are some direct benefits:

• Quicker reconciliation
• More accurate matching of records
• Saving the team’s time
• Quicker update of internal financial statement

Indirect benefits include:

• Better customer experience
• Lesser follow-up on collections
• Improved payables management
• Compliance with audits

Who prepares bank reconciliation?

The finance department is in charge of the bank accounts reconciliation process. In earlier times, the whole process of gathering records, seeking inputs, and asking for documentation was done manually. However, today the process of bank reconciliation has been automated. While it is a matter of using your spend management platform to run the bank reconciliation process. However, the finance department still has ownership of the entire process and is in charge of checking if the final bank accounts reconciliation is done properly.

What is the use of bank accounts reconciliation in Tally?

Bank accounts reconciliation within your core financial system like Tally helps ensure that all financial records are updated and all your financial stakeholders have a single source of truth. For instance, the finance controller will be able to access the current cash flow status with a few clicks. Your sales department will be able to check if all the customer accounts that were due to make payments against their respective sales have done so and take decisions on further credit sales. Your purchase manager can assess whether a particular vendor’s contract is worth renewing and if he or she is defaulting on the delivery of goods or services.