Accounting functions should work to make your company operate smoothly and efficiently. When you run manual reconciliations on your ledger, though, you utilise your resources in the most inefficient way possible. You not only open yourself to human error, but also limit the time you have to deal with any problems that may arise. Automating your reconciliation process alleviates both of those issues and makes your business more nimble as a result.
Manual Processes Waste Time and Effort
A manual reconciliation process is labour-intensive. Your accounting staff needs to work through bank statements, sales records, invoices, and cost statements to line up your payments and ensure each line item matches up, for both income and outgoings. Even for a small business, this represents hundreds (or even thousands) of transactions every month. Working through this manually takes a long time – and opens the door for the odd inevitable human error.
Today’s software can cut right through this process. An integrated payment system with accounting functions can run in the background to reconcile payments for you. At any time, you can identify costs accrued and expected revenue, on both an individual transaction basis and across a time period such as a calendar month. Thus, it frees you and your staff to focus on core business activities and handle what really matters.
One of the most significant advantages of having a reconciliation management system, is the fact that it enables the merchant to investigate and resolve customer complaints about missing funds quickly and efficiently. A reconciliation management system also enables merchants to discover technical payment processing issues promptly, since the activity is being monitored daily.
Value in Automating Reconciliation
Automating your processes addresses both sides of efficiency: the time required and the accuracy of the process. Where people get tired and make mistakes, accounting technology does not. The number-matching and item-matching software work through the process faster than any person can physically manage, without tired eyes missing a problem along the way. It will also continually identify exceptions during the process, leaving you to examine only the potentially problematic line items.
Herein lies automation’s greatest benefit. It allows you to rapidly identify and rectify errors or missing and unexplained transactions, rather than working through everything that has gone correctly. It makes sense to let the technology deal with the mundane so that your brightest minds can focus on the vital aspects of their respective roles.
The SafeCharge Reconciliation Manager generates a weekly/monthly report of the periodic activity that is being monitored. This is a crucial feature for our clients, as it gives them a very detailed overview of their entire activity handled by us.
Ensure Integration Is Complete
Of course, for everything to work, comprehensive integration is the key. You need to work with a payment services provider that can not only pull in all of your accounting software, but also function seamlessly within your environment, linking across each distinct business function. Ideally, this should operate as part of your payment system to immediately and automatically reconcile each day’s inputs and outputs.
Remember, you’ll still need to manage and run checks against your system. When your payment services provider delivers such a product, it should give you the tools and metrics necessary to track performance and give you peace of mind in your day to day functionality. This focuses your attention on the exceptions rather than the norms and allow you to run your business effectively rather than chasing numbers.
SafeCharge Reconciliation Manager has been recognised as a high-quality and technologically-advanced solution by both external companies and independent associations.
In a recent case study, Gett, a leading corporate transportation company, described their reconciliation challenges and how SafeCharge’s reconciliation service has streamlined their processes and ensures that all payments are received correctly and processing fees are in line with related service contracts. “Our business model demands an accurate reconciliation against banks and internal systems, to then pay the drivers”, said Gett’s global head of payments. “Without an automated solution, this would have been unsustainable in the long run. With a small team we can now cope with the highest degree of payment processing, without worrying about losing revenues due to mismatches”.
SafeCharge Reconciliation Manager was awarded ‘The Best Product’ in the Lion’s Den at the 12th Airline & Travel Payments Summit!
Automation of all kinds can handle the numerous mundane tasks each business undertakes every day. By automating your reconciliation process, you can hand over a task that machines are better at accomplishing, and free up your people to do what they do best. Schedule a free consultation with one of our payment reconciliation specialists and find out if you are losing revenue due to mismatches and reconciliation errors.
About the author:
Koby Sebbag, Banks Support and Matching Department Manager, SafeCharge, a Nuvei company