The account reconciliation process, tying general ledger account balances to independent sources to ensure all transactions are true and accounted for, is important for every business. If not done correctly, financial statements could be misstated or riddled with fraud. Manual reconciliations leave room for human error and increase the risk of misstatements and fraud. Here are reasons why automated reconciliation is the best way to handle the month end close.
Conducting the month-end close takes time. Not only is data collected from multiple sources, but it then needs to be documented and analyzed in a spreadsheet, with notes on transaction types, comparison of sheets, and marking of any inconsistencies. If the reconciliation does not tie to the support, someone must research the problem, and then correct those issues or book adjustments. Automated reconciliation software will manage those tasks for you and save time.
Human error is always a risk, especially when it comes to spreadsheets, formulas and version control. It’s easy to mix up numbers when copying them over in spreadsheets or make mistakes in calculations. Automated reconciliation software manages version control, formulas and identifies discrepancies immediately.
Optimize and Correct Internal Processes
To sustain an internal process manually can be an arduous and difficult task which would require constant monitoring for it to be successful. Automated tools help manage the process to be consistent, standardized and embedded with preventative and detective controls.
Work is Updated in Real Time
With automated reconciliation software, any changes made are in real time and are reflected in the dashboards for managers and staff to see immediately. Email notifications and alerts are used to constantly keep users on task. This allows the team to be on the same page all the time.
Superior Reconciliations Starts with SkyStem
It may be difficult to imagine an automated reconciliation software that works seamlessly with every business profile. However, this type of month-end reconciliation software does exist, and it’s called SkyStem ART. Automate your closing process to gain invaluable insights, reporting and process improvements. Ditch the spreadsheets and get started with SkyStem today.