To maximize accuracy in your daily financial operations, it is necessary that the finance team conducts the reconciliation process. They need to match the transactions recorded in both reports and verify if the payments have been received properly. To carry out this process quickly and to save your finance team the effort you can automate reconciliation with Cointab.
What is exception management?
It is the identification and resolution of errors after the reconciliation process is completed. This arises when you notice some errors like payment mismatch or amounts pending that are shown for payments that were already completed. A reconciliation software needs to have this feature so that you can make changes and manage the expectations for the generated reconciliation result. It helps you ensure the accuracy of the results itself and the final analysis carried out later.
Why should you choose reconciliation software that allows you to manage exceptions?
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- Identification and Resolution of errors: The software alerts you about the various errors occurring when reconciling reports with each other. To resolve these errors, you can add exceptions to the result for transactions that were completed so that the final results are correct.
- Accuracy and Completeness: Since you can resolve the incorrect errors occurring in the reconciliation results, you can ensure that the financial data is completely accurate featuring all transactions even adjusted and offline payments
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- Reduce the risk of financial loss: With exception management, you can identify and track errors resulting in solving these errors before time which reduces the risk of financial loss.
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- Addressing issues in a timely manner: As you are able to identify inaccuracies beforehand you can act to solve and address the issues on time. It helps to improve the overall efficiency of the reconciliation process.
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- Prevent fraud: By identifying and addressing potential issues early on you will be able to prevent unauthorised or fraudulent transactions that are shown in the report.
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- Improve customer satisfaction: Since you can identify and resolve errors in advance, it lets you deal with customers’ disputes much faster, increasing overall customer satisfaction.
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- Regulatory requirements: As the expectations are handled beforehand, you will be able to fulfil the regulatory requirements much quicker and complete the procedure on time.
Expectation management is thus an important feature to have in reconciliation software. Without this feature, resolving issues would be difficult and all other tasks would get delayed. The reconciliation result itself would be incorrect leading to many misunderstandings and customer complaints. To get accurate reconciliation with complete data it is important to choose a reconciliation software that offers the feature where you can manually add exceptions wherever inaccurate data is recorded.
For these reasons, a reconciliation software needs to have a robust exception management feature to ensure the accuracy and completeness of the reconciliation process and to minimize the potential for errors and financial loss.
Why Choose Cointab?
Our software provides a way for you to add expectations wherever necessary and resolve your inaccuracies on the spot. Thus you can ensure that reconciliation results are fully accurate so that you do not make any unnecessary losses and are able to attend to customer complaints much quicker. You can also manually close exceptions and maintain an audit trail for expectations added, this helps keep a track of the changes so that you check it in case of any issues. So, over time the potential for errors reduces ensuring that the financial reconciliation process is carried out smoothly.
