The COVID-19 pandemic has taught us that in this new era of technology and rapidly changing business environments, the winner is always the one that can deliver fastest and adapt to the new changing conditions. The increasing need for cloud-based solutions that allow frequent reporting and increased accuracy have made account reconciliation software in 2021 an essential part of the modern accounting department.
Account reconciliation software removes the risk of the old world of paper-based, hand-held spreadsheets by maintaining proper segregation of duties by creating view-only records after certification, automatically adding new ERP accounts, and gaining unprecedented transparency in accounting processes. Reconciliation of accounts automates and standardizes the reconciliation process to generate high-quality, accurate financial statements.
What is Account Reconciliation Software?
Account reconciliation means comparing two sets of records in order to verify if all the figures are correct and in agreement. Managing a large amount of data and accounting records can be both difficult and time-consuming, but it’s extremely important for medium and large companies.
Although some differences may be acceptable to a certain extent when comparing two sets of financial records and account balances, the differences that cannot be justified or explained can raise fraud alarms in your financial department! Depending on your type of business and number of transactions, it’s essential to reconcile your record constantly, but while sticking to a schedule.
As is the case with most industries in 2021, your accounting department can benefit greatly from modern software. Task automation and Artificial Intelligence play a huge role in streamlining and speeding up otherwise long and inefficient processes. Account reconciliation software in 2021 helps you quickly reconciling, reviewing and approving balance sheet accounts. Pre-configured templates ensure your department’s standardized approach to account reconciliation. Moreover, having decision-ready reports available at all times means better communication across your company.
By freeing up time and improving overall precision, you can focus on the important things that generate revenue and move your business forward at a great pace. Account reconciliation software in 2021 offers you the precision and opportunity to make the best business decisions while diminishing risks.
Choosing the Right Account Reconciliation Software in 2021
When looking for account reconciliation software solutions, you are most likely looking to help your company’s financial department achieve faster, more reliable results. Whether you’re looking for a large-scale AI solution or just want to gather as many demos as possible to see which solution would be the best fit for your department, here are some of the key aspects that should influence your decision.
Before the pandemic, medium and large enterprises’ financial departments used to close their books and generate reports on a pre-defined, monthly basis. Nowadays, as the business environment is changing rapidly and unpredictably, it’s important for your finance team to be able to deliver all the required information on short notice, as real-time data is what makes the difference. Speeding up important processes that influence decisions can only be an advantage in this rapidly changing business environment.
Having a large team can be both an advantage and disadvantage at times. While having more hands on deck can always help deliver better results in time, whenever new software solutions are implemented, getting everyone up to speed can be a real challenge. The modern account reconciliation software we can help you select implement, and train on how to use is designed to be used by anyone. No coding or programming is required, and in order for an implementation project to be successful, we make sure everyone involved masters the new account reconciliation software.
Best Account Reconciliation Software in 2021
What is the best account reconciliation software in 2021? That is a tough question to answer without knowing your organization’s needs and requirements? If you wish to get a personalized offer, drop us a line so we can offer you a free consultation.
The products we support and implement work in concert to eliminate manual processes that rely on spreadsheets and are prone to human error. Account Reconciling automates and standardizes the reconciliation process and integrates natively with other products to help manage every element of reconciliation and financial closure.
Here are some of the main aspects you should keep in mind when researching the best account reconciliation software in 2021:
- Prioritize your needs: You should not start researching account reconciliation software solutions without going through what needs to be changed or enhanced internally!
- Learn what the market has to offer: The advantage of working with a class-leading software provider is that their solutions are designed to work across industries, regardless of company size and type of data. Among the industry-leading account reconciliation software in 2021, we partner with Vena, CCH Tagetik, and Fluence in order to deliver the best results in the shortest time.
- Demand free demos: Without an extensive and comprehensive demo, you cannot be able to choose the right account reconciliation software solution for your company. It’s in your department’s best interest to see how the new software would integrate with your company’s practices and way of operating.
- Ask for references: Most medium and large enterprises use account reconciliation software in 2021 in order to manage financial and balance reports efficiently. Learn how these modern software solutions benefited them and what motivated their decisions.
- Hire an external implementation consultant: The implementation process, especially for large companies that manage various data sets, can be long and complicated. Moreover, a faulty implementation can ruin the benefits of your chosen solution. Make sure you pick an account reconciliation software solution that is well-known to an experienced implementation consultant. This can go a long way in saving you a great deal of time and delivering the best results.
- Narrow your options down: Based on the above-mentioned lists of requirements and needs, evaluate the demos you receive as critically as possible. Having too many options can be a great issue, especially if you fail to analyze the process in detail. If you’re new to this selection process, we’re here to help and guide you through the selection of the best account reconciliation software in 2021.
General Ledger Account Reconciliation Software
One of the most important and common uses of account reconciliation software in 2021 is to ensure matching data between your General Ledger (GL) and your preferred reporting period sub-ledgers.
Sub-ledgers represent both the internal and external financial reports that you need in order to balance your General Ledger at the end of your desired reporting period. The most widespread sub-ledges that are used in the reconciliation process are bank statements, depreciation and amortization schedules, and payroll documents.
For years, using Excel and manual processes for the month-end process, accounting departments have struggled to keep their work error-free, while spending valuable time on processes that are now automated. Account reconciliation software can benefit your company by being part of a streamlined, error-free, and much less time-consuming process.
Automated Account Reconciliation Software
What can modern Account Reconciliation Software do in 2021? How can a software solution guard you against potential fraud and help you with the month-end close process in seconds? Here are the 3 essential processes that modern software solutions can automate:
- Matching General Ledger and sub-ledger data automatically: By automatically finding records that match, a great deal of time is saved, giving your accounting department the time and availability to investigate records that are not a 100% match.
- Making automatic adjustments: GL and sub-ledger journal entries can be automatically adjusted when they’re close enough.
- Variance Analysis: Modern account reconciliation software can perform variance analysis on the accounts that need investigating before adjusting entries.