To carry out day to day financial operations accurately, it is necessary to reconcile financial records. Without verification of transactions, businesses tend to lose out on many payments. To avoid this many businesses are shifting to an automated reconciliation software like Cointab
Master data refers to the creating, maintaining and storing of data regarding a single entity in a single place. It is a way for organizations to ensure that their important financial information is present in one place. Usually, these datasets consist of vendor, client or product information.
In reconciliation, it is important to have software that helps you maintain these master data records. The software should help clean the duplications and help maintain the financial accuracy of these records. The main reason to have this feature in a reconciliation software is to have a single data source for vendors, products etc. so that you can have up-to-date and accurate financial records.
Data accuracy and consistency: It helps maintain data accuracy and keep up-to-date financial records which reduces the risk of errors and inconsistencies in the data recorded.
Improved data quality: Master data management helps clean the duplication and inconsistencies which improves the overall quality of the financial data.
Better decision-making: With a single source of accurate and up-to-date data, financial data, managers can make better decisions.
Increased efficiency: With this feature, organizations can directly upload the master data report to the software without having to manually upload or update multiple versions of the same data..
Better data governance: Master data management allows you to define the data fields and validations for the records. This helps you ensure consistency throughout the dataset
Hierarchy management: This feature allows you to create a hierarchy for data. When using financial data , organizations create hierarchies between accounts, departments, business units etc.
Better data security: Since all the financial data is kept in a single safe location with this feature, it improves the security of the data.
Master data is hence a critical feature to have in a reconciliation software as it helps maintain accurate and consistent data across the master data sheet. It improves the decisions making process as a whole which increases the overall efficiency of the organization.
With Cointab reconciliation you can directly upload your master data report to the software. You can manage payment gateway master, Pincode master and rate card etc with the software. It ensures that accurate data is present in the master report by applying any validations or defining data fields. It provides a way to ensure that you maintain accurate financial records while improving the overall data quality.