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A competent statement reconciliation system can reduce the hassle and fuss when it comes to reconciling statements. These documents are important in validating the financial state of a business, as well as identifying any discrepancies or fraud, in which fixing these as early as possible can save money in your business in the long run.
Many businesses are turning to reconciliation software to conduct statement reconciliations, but why? Here are 6 ways you may benefit from a statement reconciliation system.
6 meaningful benefits of a statement reconciliation system
1. Efficiency
It goes without saying that reconciling statements via technology is an extremely efficient way to save time and money. For instance, its ability to automate processes saves your employees time from having to manually do it themselves, which enables them to focus on other important tasks. This means lower operating costs as you don’t need to hire new staff just to simply check multiple spreadsheets against financial data.
Furthermore, many reconciliations can be done in a single day – whereas, if it were done manually, only a few reconciliations are completed in a day.
2. Employee satisfaction
As such processes are automated, the tedious and time-consuming tasks are no longer required to be done manually. As a result, this may boost your employees’ productivity and motivation as they’re no longer stuck with the boring and repetitive tasks which are probably below their pay grade. Instead, they’re able to concentrate on value-adding tasks which makes them happy, further develop their knowledge and experience.
3. Confident financial reporting
Statement reconciliation software allow you to create accurate and consistent financial reports as they can reconcile statements fairly quickly, meaning that you’re able to retain an updated ledger always. This is extremely useful in producing reports that you’re confident are correct, as well as, gaining valuable insights through these reports to help assist your future business decisions.
4. Improved communication and collaboration
Communication between employees is improved as this software are transparent, enabling everyone to track reconciliation activity and workflow. Employees can simply look on the software platform to check everyone’s progress. This can be incredibly helpful for businesses where employees are not always in the office, or with a global workforce, so that employees are always connected and on the same page (which helps foster collaboration!) when it comes to statement reconciliation.
Additionally, in the case of supplier statement reconciliation, relationships between your business and suppliers are much healthier as a result of being able to complete reconciliations effectively and swiftly, as well as the ability to update your suppliers on your progress. Communicating and keeping suppliers up-to-date is crucial regarding supplier statement reconciliation.
5. Removes human error
Whether it’s a bank reconciliation or a supplier statement reconciliation, automated statement reconciliation processes remove the risk of human error. Any errors that are found are instantly highlighted, saving you time (and eye strain) from having to continuously scroll through a spreadsheet to look for any inconsistencies.
6. Problems resolved quickly
As discrepancies are easily found and displayed, these issues are thus able to be resolved immediately, leading to effective statement reconciliation management. Employee stress from being hindered by issues in the data is mitigated as any problems can be fixed quickly, allowing more statements to be reconciled.
