This decade has been very significant for Banks and Financial institutions in terms of many technological advancements. One of the most important is switching from manual processes to ...
This decade has been very significant for Banks and Financial institutions in terms of many technological advancements. One of the most important is switching from manual processes to automated workflow. General ledger accounts reconciliation is one such example. Automation carries out crucial tasks more effectively, rapidly, and precisely. Let’s discuss the importance of the Automated General Ledger Accounts reconciliation process and why there is a need for automation.
What is General Ledger Accounts Reconciliation
General Ledger Reconciliation is an important activity that verifies the company’s GL account balance integrity. Account balances have to be compared before generating financial reports. They are evaluated in comparison to other independent systems, cash flow statements, and revenue sheets. they can be used to verify the accuracy of the balance and is an important part of the financial closing process.
Importance of Performing GL Accounts Reconciliation
Below are some of the tasks associated with general ledger accounts reconciliation that are listed as significant activities for banks :
Why an Automated General Ledger AccountsSoftware?
Identification of Errors & Deriving EOD GL Balance with Al algorithm- Identifying errors and deriving EOD GL balances in complex sets of transactions is not easy for banks. With the AI algorithm of automated GL accounts reconciliation software, financial institutions can get an accurate GL balance from an error-free process.
Automation for Upgrades- Automation simplifies the process of upgrades. Thus, it is possible to automatically update the general ledger accounting software. This is so that financial institutions can perform GL account reconciliation based on current trends and instructions. As a result, it enables them to have a competitive advantage over others.
Self-Service Facilities & Reconciliation Templates – GL account reconciliation software has predefined templates and self-service offerings. and so, it significantly reduces the time required to reconcile GL as well as reduces manual errors.
Compliant with Regulatory Mandates- Integrating an upgraded GL accounts reconciliation software offers banks the assurance that the service is regulatory compliant. It performs all the GL balancing activities as per the industry mandates as well as reduces penalties.
Detect Fraudulent Activities in Record Time- It is common to notice the expense through embezzlement or fraud. However, with GL accounts reconciliation, the detection of fraudulent activities through an accurate audit trail becomes effortless as well as less time-consuming.
Verifying the Current Cash Flow of the Business- Cash flow verification is as important as detecting errors as well as avoiding penalties. Validating liquidity supports banks to have clarity about their current cash position. As a result, this process ensures that financial institutions are making wise decisions according to their financial health.
For more information about an Automated General Ledger Accounts reconciliation process, reach out to our experts through the Contact us age. We would be happy to offer a free consultation.