Whether an enterprise or a growing business, reconciliation plays a vital role in achieving business goals. Owing to the accuracy of the reconciliation, the key decision makers such as CFOs, CTOs, CEOs and Finance Controllers of the organization can make data-driven decisions which can boost the bottom line.
Reconciliation of financial records is an extremely important procedure for an organization. It is a process of comparing two data sets and verifying if the values match in both reports. This process is carried out to ensure that the final results are valid and correct. Now, many businesses are leaning toward automation to simplify this process as this process is extremely time-consuming. Before, finance teams used to spend a lot of time and effort manually reconciling data. With automation, this process is completed quickly with accurate results. With the help of software such as Cointab’s Reconciliation system, you can easily automate your monthly reconciliation process without any manual effort and save the time of your finance team.
Now, let’s take a look at the importance of scheduling reconciliation when using an automated reconciliation software.
How does automation help?
The main reason to automate the reconciliation process is to complete the process in a shorter period of time. As manual reconciliation requires human labour to carry out the process it takes a lot of time. Automation also helps is ensuring that the results are accurate, plus there is no need to worry about the human error as in manual reconciliation. So you can be free of the risk of errors as you would be alerted in case of any issues by the software.
Why Should we start scheduling Reconciliation?
Scheduling reconciliation to run on a monthly basis or weekly basis regularly has lots of benefits. It helps you ensure that results are kept up-to-date and in line with the real-time transaction count. This also aids in better decision-making which helps you ensure the smooth running of daily operations. Let’s take a look at some benefits of scheduling reconciliation monthly.
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- Maintaining accurate and up-to-date financial records: Since a software is used for reconciliation the results produced are accurate and precise with all-around transaction tracking which ensures that the data is updated on time. By using a system for reconciliation your financial records will be up to date without much effort
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- Detecting and preventing errors and fraud: As reconciliation is scheduled monthly, you can detect errors or fraud quicker when verifying the transactions, so you can prevent these issues from being a hindrance beforehand.
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- Ensuring compliance with financial regulations: Since the results are prepared beforehand regularly for each month, you will be able to check if the results are accurate and reliable. This in turn helps you detect and prevent fraud helping ensure financial regulations compliance.
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- Identifying and resolving discrepancies in a timely manner: By scheduling reconciliation, you will be alerted of the unreconciled transactions ahead of time, so you can identify and figure out the reason for the discrepancy. Resulting in resolving the issues much more quickly.
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- Helping to ensure that all financial reports are accurate and reliable: By reconciling your financial records every month, you will be able to ensure that every transaction made is correct and in case of mismatches you can solve the issue quickly and be accurate that your records are accurate
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- Facilitating accurate budgeting and forecasting: As reconciliation results are ready in advance, they can be used for making strategic forecasting plans to create an optimal way to carry out daily operations. Also as an automated software is used for reconciliation, you can be assured that the results and calculations will be accurate.
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- Helping to ensure the timely completion of audits: Audits will be completed in a timely fashion the auditors use the monthly reconciliation results to conduct the audits. It is helpful to conduct reconciliation as the errors or discrepancies are corrected before handing over the records to the auditors. This assures the auditors the records are reliable and it also minimizes the time to conduct the audit.
Scheduling reconciliation for every month with automated reconciliation software helps run your business more efficiently. It has become more and more crucial to run reconciliation with automation regularly as it reduces error and saves manual and monetary resources helping you focus on other tasks. Be it any industry, or any size, reconciling financial records regularly helps ensure the financial accuracy of the organisations so that you can keep unnecessary losses at bay. This indirectly leads to the overall satisfaction of customers, stakeholders, financial professionals and managers as they can be assured of financial accuracy and reduced time in solving disputes.
Starting Automating Reconciliation with Cointab
With our innovative technology, you can completely automate the reconciliation process of various financial datasets to produce accurate reconciliation results. Our software gives you the option to schedule this reconciliation hourly, weekly, or monthly instead of you having to manually enable this option every month. So you get your reconciliation results on time as per your need without any reminders or extra effort on your part. This helps you ensure the smooth working of your business as you can reconcile your financial records regularly with our scheduling feature.
