Bank reconciliation is the process of matching entries (e.g., customer payments, bank fees, etc.) on the company’s cash books with the corresponding data on its bank statements.
A lot of time and resources go into account reconciliation, making it an exhaustive and error-prone process. Hence, businesses must look to improve their bank reconciliation process to make it faster and more accurate.
Bank reconciliation plays an important role in getting detailed visibility into cash availability, accurate reporting, fraud detection, faster financial close, and seamless audits. Regular bank reconciliations can help businesses identify any conflicting items on bank statements and take necessary action immediately. It is imperative that businesses remain prepared for regular bank reconciliations and adopt best practices in bank reconciliation to handle an increasing volume of bank statements amid business growth.
To start with, businesses can adopt bank reconciliation templates to match bank statements with the cash book. Spreadsheet-based bank reconciliation template is free and easy to use. However, they have limitations when it comes to allowing collaboration and ensuring the speed and accuracy of processing.
Manual bank account reconciliation means accountants rely heavily on spreadsheets and other manual methods for financial reporting. Automated bank reconciliation optimizes the process by identifying and resolving anomalies using advanced technologies, such as AI, for faster and more accurate bank account reconciliation and financial close.
HighRadius Autonomous Accounting Software enables faster financial close and accurate reconciliation of bank statements and general ledger (GL) and sub-ledger. Using AI-based anomaly detection, save your teams from manual work during month-end close.
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