How to Streamline your Finances with FinRecon

Numerous offices and departments spend hours performing reconciliation work, looking through entries, and comparing them with bills and receipts. The task becomes tedious for many, resulting in errors and delays with the overall financial workflow.

Traditional reconciliation methods are inefficient and time-consuming. However, let’s talk about a better way for reconciliation through finrecon in this blog post. We will talk about the challenges a business faces, the alternatives, and its benefits. By the end, you will know how to streamline every reconciliation task and grow your business without hassle.

What is Reconciliation in Enterprises?

Let’s understand the meaning of reconciliation before we move further. Reconciliation refers to the process of comparison and matching between two financial records. 

Let’s take an example here to understand further. Imagine there is a company where the seller manages the master ledger and tracks invoices for 100 customers. Every customer has a personal statement of accounts, and payment summary, including pending and overdue expenditure. If the seller has to manage all the expenses with accuracy, they have to reconcile all customer statements with their master ledger. 

Further, they have to match the invoices with payment receipts and identify partial and due payments. The seller has to work with payment reminders, errors, and updates for every customer. This process is reconciliation. 

Reconciliation is a significant task for every business, including school finance departments, banks, corporations, and manufacturing or similar enterprises.

Challenges Faced with the Traditional Reconciliation Method

Although organizations understand the importance of reconciliation for active financial records, they fail to perform the required balance sheet substantiation on time. Enterprises face multiple challenges and their limited resources push them back. Here is a breakdown of some of these challenges.

• Time-consuming Process –
  If employees compare large data volumes and finances manually, the task takes time and becomes incredibly tedious. These drawbacks lead to inefficiencies and further delays in the financial cycle. Closing every transaction and account and generating final reports for records becomes uncertain as well.
• Error-prone Workflow –
  Manual work brings in errors and discrepancies during data feeding and manipulation. Typing mistakes, missing entries, extra entries, mismatched information, and other issues may arise, leading to confusion during reconciliation or records and finding where the accounts went wrong.
• Scalability and Flexibility –
  Dealing with point-to-point data when the volume is significant and coping with changing business needs is not for traditional reconciliation methods. The financial department has to deal with account additions, system integrations, and more every day. These processes can be tiresome and time-consuming if the right processes are not in use.
• Visibility and Accessibility –
  If the financial department of any business still uses paper-based records to track expenses, the reconciliation process becomes more difficult. You cannot identify trends, translate most records, integrate with other systems, or manipulate current records per need.

Reconciliation Across Departments

Let’s get into how reconciliation is useful across different departments in the market with the required use cases. 

• Inventory Management –
  Avoiding errors, thefts, and shrinkage is important while managing an inventory for any enterprise. You can make sure that the data of the physical inventory count matches with the inventory system and avoid discrepancies with reconciliation. By using technology for reconciliation, you can import data from multiple sources, find data issues, and automate most tasks without the risk of manual errors. This process will help you focus on other tasks and make better purchasing decisions.
• Stock Versus Purchase Order –
  Businesses have to align their stocks with purchase orders and avoid the headache of missing stocks and overpayments. Reconciliation can help you collaborate on stock procurement and payments. Further, you can maintain data for finished orders, returns, and damaged items and align the same with payments. Finally, report generation for performed tasks gets smoother.
• Banking Systems –
  Reconciliation systems come in handy for banks and cash-related departments. You can compare bank statements with cash receipts and other payment forms to create a clear record of transactions. Tracking cash flow becomes easier with ensured accuracy and efficiency. You can set data for dates, amounts, reference IDs for reports, and catch potential frauds without hassle.

Introduction to FinRecon: A Revolutionary Reconciliation Solution

FinRecon is a technological solution, designed to cater to the reconciliation needs of every  department. This platform has the best-in-class features and characteristics to make sure that your business exceeds. You can reduce human errors that come with manual work, improve visibility and control, and improve workflow efficiency. 

Key Features of FinRecon

Let’s talk about the key features of FinRecon and how they help your finances. 

• User-Friendly Interface –
  FinRecon has an easy-to-use and interactive interface. Your financial department would take no time to adapt to FinRecon’s work and perform the required tasks. FinRecon simplifies the process of entering data, navigating through current transactional data and history, and customer usability.
• ML-based OCR Models –
  FinRecon uses the power of machine learning-based Optical Character Recognition (OCR) to take data from documents and save them in real time. This feature allows you to take data from any file format and use the same for reconciliation without human errors.
• Managing Documents –
  This allows the finance department to store and maintain all records in one platform for reconciliation. This way, you will not lose any records, receipts, or bills, and have the required organizational system for your documents. The audit trail of the historical reconciliation can be kept open till the exceptions are handled completely.
• Data Integration –
  This provides multiple data import methods and helps you get the required datasets for reconciliation. You can connect your current database and import files with FinRecon. Further, you can use APIs for data import from external systems. This tool allows you to get files in any format, including Excel, PDF, E-mails, and CSV.
• Dashboards –
  FinRecon has a centralized dashboard for reconciliation. You can keep an eye on the system’s progress in real-time. You can further know about the processed data amount and get information about exceptions as they occur. Finally, FinRecon provides reports on aging, forecasting, etc. 

How does Effective Reconciliation help your business?

As a financial department of any business, your job is to make sure that all financial operations are smooth and reconciliation takes place on time. Reconciliation with technology can lead to a 90% match in transactions automatically. This tool can help you save 85% of your time spent on reconciliations. Moreover, you can get a 70% faster monthly close!

Here is how effective reconciliation can help your business:

• Increase Efficiency –
  FinRecon works on automating human tasks. You can save manual errors, incorrect calculations and comparisons, and paper-based data that cannot integrate with other systems. You need less team personnel dedicated to reconciliation and can focus on other business activities.
• Accuracy and Control –
  FinRecon uses ML-based algorithms, reducing the risk of errors, eliminating manual intervention, and providing the required accuracy and control for your financial records.
• Better Decision Making –
  FinRecon allows you to get aging and forecasting reports, among many others. You can get insights about your financial records in a systemized manner. Aging reports help in finding outstanding payments and their time frame. Forecasting reports are for identifying trends for the future. You can make better decisions about your business with FinRecon as your partner.
• Reduced Costs –
  You can save time and money with automation and rework. FinRecon streamlines the reconciliation process, helps in better future financial allocation, and enhances your business operations. 

How To Have Successful Reconciliation with FinRecon

Here is a step-wise guide on how to get started with FinRecon as your reconciliation partner.

1. Go to the Schedule a Demo or Contact Us.
2. Enter your details, including first name, last name, email, phone number, and select requirement type.
3. In the drop-down menu “Select Finrecon”
4. Click on submit.

FinRecon Team will get back to you and schedule a demo for your finance department to test FinRecon’s services. 

Maintaining Finances With FinRecon

We understand how manual reconciliation processes take time and induce errors in the financial workflow of any business. You cannot gain insights and get automated reports from manual processes. 

FinRecon comes in as an ideal solution, imports data from existing and new sources, promotes real-time processing, uses advanced features like ML-based OCR models, and improves the reconciliation efficiency of your business. You will face no issues with scalability and flexibility when using our solution for your business. This platform comes best in use with the financial departments of schools, MSMEs, banks, etc. 

Schedule a demo or contact us to start your smooth reconciliation journey today!

Frequently Asked Questions