Last editedAug 20222 min read
Accounting reconciliation is a crucial aspect of your company’s accounting procedures. It’s a process that ensures that the money you’ve earnt, or spent, matches the money entering and leaving your account at the end of a specified fiscal period. It provides you with a way to check for any fraudulent activity, as well as help to prevent any errors in your financial statements. Account reconciliation also helps you to manage and monitor your cash flow.
Manual reconciliation, however, is time-consuming and error-prone, so it’s often a good idea to use account reconciliation software to help you complete this task. Take some time to identify the right reconciliation accounting software for your company, and you’ll soon be able to automate processes and experience a stress-free, quicker, and easier way to manage your bookkeeping.
To help you decide which system to opt for, let’s take a look at some of the best account reconciliation software on the market right now.
Xero account reconciliation software
Xero is considered one of the best account reconciliation software. It’s well-known for its user-friendliness, making it suitable for small to medium-sized businesses, and you can use it to manage your inventory, track your expenses and process invoices. Xero also integrates with numerous third-party apps like GoCardless to make monitoring cash flow and enabling payments fast and easy.
With Xero, your bank transactions can be automatically imported each day for quick reconciliation. The software then automatically matches, and reconciles, your invoice payments and fees. If you’re using GoCardless with Xero, all you need to do is add a GoCardless clearing bank account for these transactions. Then, when customers pay their invoices via GoCardless, Xero records the payment, plus the fee, in the transaction in this clearing account, and automatically reconciles them.
QuickBooks reconciliation accounting software
QuickBooks is another account reconciliation software that can help save you significant time when you’re managing your accounts. Plus, it works on a laptop or smartphone, making it easy to reconcile your accounts on the go. QuickBooks can be connected to your bank account, credit cards, PayPal, Square, and other leading payment processing providers, including GoCardless, so that you can import transactions from all of them. The system automatically reconciles your transactions and bills and links all incoming payments to the appropriate invoice.
QuickBooks automatically handles and records GoCardless fees as a cost, saving you even more time for fast, efficient, and streamlined bookkeeping. When you get your bank statement at the end of the month, you only need to spend a minute or two reconciling your accounts, since all your data is organised for you, making the process easy and fuss-free.
Sage 50cloud account reconciliation software
Sage is a reconciliation accounting software that helps companies get paid promptly, with the option to create customised invoices that can be tracked. The software integrates seamlessly with GoCardless, so you can create automatic payments, and reconcile your data with far less manual input.
Once transactions have been entered or imported from a file or bank feed, you can check and manage these entries against your bank statements. Transactions imported from a feed are marked as “cleared” and automatically reconciled. As you’re reconciling, the balance will naturally increase or decrease. Once all entries are reconciled the balance should match the target balance, and your actual bank balance, the difference equalling zero.
Accounting software bank reconciliation advantages
A good accounting reconciliation tool can help ensure you’re managing your financial information efficiently and accurately. It can help you scale up your reconciliations as you grow and eliminate time-consuming and potentially costly errors. If you’re not already using a reconciliation accounting software to help you streamline your accounting processes, now could be the time to start.
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