How does Reconciliation Platform Revolutionize & Reshape Industries?

Are you familiar with automating your account reconciliation processes? Yes, you heard that right.

Organizations nowadays deal with huge volumes of data, which exist in various forms and need to be imported from various sources for reconciliation. Teams collect payments from various channels and thus require reconciling the ledgers and invoices accordingly. 

How do businesses achieve accuracy and efficiency? They streamline their account reconciliation and reshape workflows with the help of a smart reconciliation platform, FinRecon.

In this guide, we will brief you on how businesses can automate their reconciliation processes by leveraging technology with advanced software, AI, and real-time tracking. We will learn the challenges of reconciliation and how modern platforms like FinRecon help optimize such processes.

Overcoming Reconciliation Challenges with Automation

Here, we will discuss three broad categories of reconciliation and the challenges faced by organizations in that field:

• Tax Reconciliation: The finance and Accounts teams of any business reconcile the Accounts Receivables / Payables, Invoices and Tax adjustments, across vendors/customers. They safeguard financial integrity by ensuring accurate tax reporting and compliance.
  • Frequent changes in tax regulations result in confusion and inaccuracies in tax reconciliation.
  • Dealing with a variety of taxes altogether may result in complexities.
  • Matching financial data in tax records with general ledger entries differs in categorization and timing.

• Ledger Reconciliation: Collections teams collect data in bulk and reconcile the invoices/ledgers against payments received from multiple channels (cash/cheque/online/cards), or Partial / Full Payments.
  • Manual data collection and matching every transaction is tedious and has higher chances of errors.
  • The data collected is available in various forms which need proper structuring before synchronizing and reconciling them.
  • Manual data entry is suspected of inaccuracy and discrepancy.

• Inventory Reconciliation: Procurement / Stores teams do the reconciliation of the stock in/out against purchase orders and delivery challans.
  • Any damage, theft, misplacement or error in counting, leads to a mismatch between physical inventory counts and recorded quantities.
  • Valuation differences and unrecorded transactions often lead to inaccurate reconciliation.

Leveraging Technology for Streamlined Reconciliation

The challenges highlighted above are inherent in all types of reconciliation faced by various business departments in all organizations. To address them, we have the privilege of making the best use of robust reconciliation platforms like FinRecon to automatically compare and match vast volumes of data. 

Smart tools can handle diverse data formats, minimizing errors and streamlining the online reconciliation process.

• Organizations can create a reconciliation workflow by defining the reconciliation conditions, source files, destination files and output files. 
• The users can also manage approval workflow to define an authorization matrix to close a reconciliation exception and case management.
• FinRecon supports files available in formats like Excel, CSV or PDF, and extracts and reads files from emails, as well.
• Safe record keeping of reconciliation data can be accessed at any point in time.
• Businesses can view all the reconciliations running, records processed, and exceptions, all together in a dashboard and also access the complete audit trial.
• Case Management feature allows to assign and close exceptions for quick resolution.

Utilize AI and ML-powered solutions to Serve Industries

Several industries have benefitted from utilizing AI and ML-powered reconciliation platforms to help identify patterns and predict and categorise transactions. Let us walk through the transformations undergone across businesses by adopting AI reconciliation software, FinRecon:

• Configurable auto-reconciliation rules (business rule engine) along with customized reconciliation templates have successfully reconciled 98% of account reconciliations automatically.
• Task optimization helps save costs, and resources can be employed for other necessary business activities rather than spending hours on mundane tasks.
• Time spent by resources to carry out manual reconciliation tasks was reduced by 85%.
• Real-time tracking of reconciliation status via comprehensive dashboards and business reports was used for decision-making.
• The risks and fraud chances were immediately reduced with enhanced data accuracy and security.

FinRecon: Empowering and Revolutionizing Financial Future

Did you know? Businesses spend 40% of several teams’ time completing manual reconciliation and other relevant tasks. With the evolution of reconciliation software for businesses, it is always a wise decision to revert all mundane activities and go the smart way around!

All business operations that involve account reconciliation are considered pivotal. Automating these processes with AI-powered FinRecon promises to expedite workflows, establish clear reconciliation rules, identify and rectify discrepancies, and enhance decision-making capabilities. 

Our platform is a choice that businesses always come across and loot endless benefits. Book a demo to learn and explore!

Take the next step towards a more efficient and accurate financial future with FinRecon.

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