Last editedJan 20232 min read
All businesses have to perform account reconciliation. It’s a mandatory process which involves ensuring the general ledger account balance is accurate. This typically requires an accountant compare the general ledger with third-party data and additional documentation in order to confirm its accuracy.
In the past, this process was a lengthy and arduous task carried out by accountants. Time consuming and prone to human error, it can be a headache for businesses to carry out. However, with automation, the whole process can be streamlined.
In this post, we’ll outline some of the ways account reconciliation automation software can benefit your business, from saving you time and money to improving accuracy.
Benefits of account reconciliation automation
Automated account reconciliation is a game-changer for accounting. Below are some of the key advantages of using automated software over traditional methods:
1. Standardise the process
With account reconciliation software, the reconciliation process is automatically run at the end of each and every accounting period. This means the accounting department has one less thing to think about. Additionally, it speeds up the process and allows accounting staff to focus on other tasks.
2. Improves accuracy
With automation software, there is far less room for error as natural human error doesn’t occur. This can help ensure the process is carried out with greater accuracy.
3. Diligently keeps records
All reconciliation history is stored with automated software. This is very handy when it comes to auditing bank reconciliations, as well as overall compliance.
4. Allows you to assign responsibility
The software allows you to delegate responsibility and assign different roles. Access can also be managed. Overall, this can help streamline accounts management.
Account reconciliation automation software: what to look for
If you do decide to use automated software for account reconciliation, below are some of the key features you should look out for to ensure an optimal experience:
1. Cloud functionality
With cloud-based solutions, the software can be accessed from any device with internet connection. This can make it more convenient and quicker to use, and can mean updates and bug fixes can be carried out more promptly.
2. Task flow
Having a task flow feature offers insight and visibility into the reconciliation process.
Reporting features can help you track key performance indicators (KPIs) and provide insights into account data.
4. Suitability for your business size
Different software solutions will come with different options tailored to businesses of different sizes. If your business operates internationally, for instance, you will need to have software which can handle multiple currencies and manage multiple entities.
Examples of account reconciliation automation solutions
Now that you know what features to look out for, here are some of the best account reconciliation automation solutions available:
Xero is a powerful but easy to use accounting software. As all its plans allow for unlimited users, it's ideal for medium to large-sized businesses.
Blackline is a cloud-based software which offers reconciliation tools such as standardised templates, inbuilt review processes and task flows. It also has an integration option for uploading supporting documentation in the cloud.
QuickBooks is one of the most popular accounting software solutions in Australia with great tools for automated reconciliation. One of the great features of QuickBooks is its excellent customer support, with numerous guides and how-to articles to ensure a great user experience.
GoCardless integration with accounting software
By signing up to GoCardless, your business can collect both regular and one-off payments quickly, easily, and with reduced costs, all while continuing to use your existing financial system for reconciliation.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.