Reshaping Reconciliation with Smart Technology-backed Ideas

Reshaping Reconciliation with Smart Technology-backed Ideas

By Capital Markets CIO Outlook | Thursday, October 22, 2020

With excellent capabilities that streamline financing, reconciliation platforms are becoming crucial for capital market firms.

FREMONT, CA: In the age of digitalization, it becomes quintessential for capital market firms to have quick financial tracking and reporting abilities that propagate effectiveness and productivity. That's precisely why reconciliation becomes quintessential to drive accounting operations in every capital market firm. It grants companies a clear roadmap for ensuring fast and secure transactions. Service providers have realized the growing demand for reconciliation solutions and have developed and designed offerings that cater to various levels and types of organizations. Most of the solutions follow a modern approach to reconciliation, eliminating the shortcomings, which are faced by companies with manual processes.  

Automation plays an integral role in helping the reconciliation process evolve. Repetitive tasks like transaction matching do not require human intervention with software at their service. Thus, professionals get the opportunity to work on more complex issues and undertake other valuable activities. Automation drives in better transparency with all aspects and allows firms to keep the reconciliation process consistent and prioritized. As the complete process of reconciliation is automated, traceability improves, making compliance tracking, and management easy.

As the volume of transactions in a company increases, the chances of errors in handling finances grow. Integrated ways of reconciliation by service providers are helping companies analyze and regulate processes so as to streamline and map reconciliation. This removes the chances of double work as well as risks of mismanagement. Many of the service providers are startups and are coming up with numerous innovations yet viable solutions.

Automated, cloud-based, and agile, reconciliation solutions are providing standardized templates for account linking and workflow preparation. Complete management suites consist of tools that allow users to schedule activities, process invoices, and quotes, manage inventory, and manage purchase orders, bills, and expenses. Importing data, mapping it, tagging transactions, sending notifications, and many other functions that come under reconciliation become simpler with the exclusive solutions that service providers are offering.

Certain reconciliation software solutions have highly functional automation features that make everyday reporting and matching convenient. These also automate the process of categorizing similar transactions and grouping them. Some reconciliation solutions provide several accessibility options, thus entitling firms to allow suppliers to access and manage their transactions and documents. Features like exception reporting, point and click matching window enable optimized matching and minimized risks.

Managing the finances of a company with clear visibility and control over each transaction is essential to maintain a consistent report. The traditional methods of reconciliations employ manual ways and simpler computing programs to achieve functions like transaction matching and error elimination. The drawbacks of this approach are that it is time-taking and inaccurate. Companies spend more amounts of time checking transactions that are already matching. The issue with conventional spreadsheets is that they are not optimized for the process of reconciliation. Although, a substantially better option than pen and paper, these also are not reliable enough and cannot be customized to manage compliance or handle multiple users simultaneously. Thus, firms are now turning towards service providers that offer comprehensive reconciliation solutions on their platforms. These solutions incorporate the latest technologies and add automation abilities that bring in large enhancement in reconciliation operations.

While some of the emerging solutions are automated, online, and cloud-based, most service providers are looking to provide comprehensive suites. By studying and analyzing real-time requirements, companies can opt for a reconciliation platform that corroborates their financial functionalities and enhances the quality of management.  

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