A study by PwC says more than 81% of banking CEOs are considering the impact of digitization in the finance world. Several financial organizations are trying to keep up with the latest tech trends like chatbots, Artificial Intelligence (AI), Blockchain, etc. These breakthrough innovations with new technologies are helping to optimize operational efficiency to a great extent. An automated reconciliation system is one such technological advancement that transformed the reconciliation processes in financial institutions globally.
Losses due to erroneous manual reconciliation are common in the banking sector. The unorganized workflow or scattered systems attracts penalties and other compliance issues. Automatic reconciliation software leverages cash management through optimized workflow, calculation accuracy, and process efficiency. It ensures that business doesn’t have a negative impact due to process disruptions.
Here are some of the benefits of automating the reconciliation process for handling cash management efficiently.
- Reduction of Overhead Costs: Automated reconciliation system reduces or eliminates banking penalties, regulatory charges, cross-border fees, and other vendor payments. Banks that engage their human resources to reconcile transactions and cash applications often increase overhead costs. Shifting towards automated reconciliation software saves your time & effort other than overhead expenditure. You can utilize your staff in other high-value activities. Unlike the manual process, automated reconciliation software is a one-time investment for your business.
- Seamless Efforts to Make Payments: The payment process is an essential aspect of a business. Global enterprises have their own team to handle these activities, but the chances of mistakes and delays still prevail. Implementing an automated reconciliation process for handling cash management enhances the efficaciousness of the whole process. Automating the reconciliation system positively impacts the straight-through processing rate irrespective of location, currency, banking system, or ERP. The software is also recommended for fund tracking, and profit & loss calculations on currencies.
- Strengthening Business Cash Position: Automatic reconciliation reconciles maximum numbers of data within a minimal time frame. It offers accurate data insights, performs liquidity management, matches up account balances, and monitors clear and un-cleared funds with the utmost efficiency. Thus, this software helps businesses to strengthen their cash position and have a positive influence on their financial health.
- Making Effective Business Decisions: Appointing a finance team is beneficial for organizations, though not the only way to grow their business. For most financial institutions, dealing with erroneous data insights is a major concern. Handling data reconciliation manually often distorts reports. This loophole can lead businesses to make wrong decisions. Using automatic reconciliation software eliminates inaccuracy from the processes through an effective audit trail. It offers precise data insights to make financial institutions aware of their current financial position. Depending on the insights, banks can manage their cash flow and will be able to make decisions accordingly to enhance their cash position.
Using Automated Reconciliation Software
Ascent, AutoRecon, an automated reconciliation system software, is a perfect solution for optimizing your cash management needs. It accurately reconciles your business data by reducing errors, fraud, and over expenditures. Therefore, Enterprises have trusted this software due to its high-value services that support businesses to maximize their ROI.
To know more about our automated reconciliation software & related services, check out our blog page. We also offer a free consultation for all your reconciliation-related questions and concerns. Drop us a note through the Contact page, and we will get back to you within 24 hours!