How Automated Reconciliation Facilitates Seamless and Proactive Task Management for Businesses Automated Reconciliation
Auhored by Mr. Jayendra Desai, Managing Director, Unistanz Software Private Limited
A report predicts that the global account reconciliation market will grow at a CAGR of 14.6% between the period 2022-27. The market value is likely to become more than double by 2026 compared to its value of USD 2.1 billion in 2020. Today, robotic process automation for data reconciliation has become critical to finserv and insurance operations. But, with businesses still depending upon manual processes, the adoption of automated reconciliation remains a widespread challenge. The automated process not only minimizes the reconciliation cost by multiple times but also offers precision and speed to the business.
The complexity due to the large volume and multiple sources, types, and formats of data makes manual handling prone to error. Audits frequently reveal these resultant inaccuracies. For this reason, RPA-based reconciliation has become a need of the hour. Automating the repetitive tasks in reconciliation minimizes the data complexities related to manual intervention. Besides, data becomes transparent and more compliant with the regulations.
Seamless and proactive task management with the help of automated reconciliation.
Numbers are the main game in business, whether in the form of data, time, or money. Automated reconciliation by offering data accuracy helps in avoiding debacles while making strategic decisions based on business-related data. The improved financial governance thus contributes to effective financial risk management.
There are operational, performance and regulatory losses associated with manual reconciliation. Non-standardized procedures, unreliable reports or reports lacking details and improper use of resources are some of them. Manual reconciliation lacks accountability and time management because it involves multiple steps and people. As a result, missed deadlines and miscommunication occur. Businesses incur the opportunity cost of this missed time. To avoid this cost, companies like Unistanz provide IT solutions such as the QuickReco Tool to eliminate manual intervention by 100% while carrying out lookup, calculation or reconciliation. Such tools effectively eliminate human errors.
The automated reconciliation process is standardized, where steps are easily optimized, with enhanced internal controls. It reduces errors, accelerates the financial close, saves time and increases data reliability. The saved time allows for prompt detection of fraud, resulting in less damage to the organisation. Also, the wide access to the account reconciliation process keeps things transparent for all the stakeholders and provides a full overview of who’s done what, when, how, and why. Eventually, it defines the milestones and the procedures to achieve them. In a way, this optimizes costs as well.
When direct payment entries to or from the business are unclear, through automation they are attached to the right account. Statements from multiple vendors in various formats can also be easily recognized and processed by software platforms, eliminating errors and delays related to the manual process. Therefore, automation allows for visibility, consistency, and auditability even in the most complex reconciliation scenarios.
Time is an important resource in business, losing it or its mismanagement costs dearly. Besides, if a successful business looks forward to expanding business, relying upon or fretting over manual reconciliation of financial statements would not be feasible. Instead, the adoption of automation will give a competitive advantage.
Similarly, financial health is vital to keep important stakeholders and investors interested. The hassle-free process of automated reconciliation helps the finance department to be more efficient. With the saved time, finance professionals can execute advisory roles or can even act as strategic business allies.
The processed data can be used for forecasting and modeling. Careful planning based on forecasts will clarify the cash requirements based on actual cash flows. Such financial accuracy will allow for proactive decision-making related to all the business stakeholders and operations. Error-free reconciliation will also contribute to efficient asset management while frequently prepared reconciliation statements will further minimize the complexity of the process. It will altogether ensure seamless management of business operations.
Agility and resilience are what we look forward to achieving from technology. Automation of the reconciliation process is just another tech solution to make one’s business future-ready.
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