August 14th, 2020

Bank Rec automation improves cash position and cash flow


Cash is the lifeblood of any business, if cash dries up then a company will eventually die. Bank reconciliations (bank rec) are hugely important in maintaining internal control along with a steady and consistent cash flow. Cash flow is separate from cash position, as having cash on hand is important but cash flow indicates an ongoing ability to generate and use cash. Having a strong cash position and a positive cash flow are common company financial goals.

A company will process a bank rec at least once every month, in what is a standard worldwide process. It is hugely important that money in the company bank accounts matches with the financial records of the company. Otherwise, discrepancies need to be identified and adjustments made in order to balance. The importance of a business knowing exactly how much cash is available in their bank accounts at any given time cannot be exaggerated.

Key benefits of an accurate bank reconciliation

There are many benefits to having a true reconciliation and what it means for a company. An accurate bank rec indicates a company is not careless, there is little to no fraud, and all cash is accounted for which means company cash flow is optimized. We are going to explore some of the key benefits of having an accurate bank reconciliation.

  • Company cash records are correct – you know exactly how much cash is in the company bank accounts. Knowing that you either have a surplus or a deficit of cash, allows you to plan spend and investment accordingly. Cash position is confirmed and positive cash flow becomes obtainable.
  • Fraud and theft detection – completing bank recs allow for identification of possible fraudulent payments and employee theft within your company. Enhancing the credibility of the company cash position and cash flow.
  • Error detection – locating financial errors such as double payments to customers, or other payments that were made in error, is necessary to avoiding wasteful overspend. Cash position and cash flow are optimized.

Key company benefits of identifying current cash balances

As we mentioned previously, having exact company cash records to hand are a huge advantage to a business, and especially for its strategy going forward. Correctly identifying the cash position allows a company to move forward. There are three key areas a company will excel in due to the security of having this knowledge.

  • Growth – this is what all companies are interested in doing. Knowing how much money you have to invest and when you can invest it, is a huge contributor in helping a business to grow in size and strength. Making the right decisions at the right time is crucial, knowing if you have the correct resources to do so, is just as important. Opportunity for growth is maximized.
  • Flexibility – knowing how much funds a company has in reserve allows you to easily pay suppliers, bills, wages, etc. This brings peace of mind, but it also allows a company to adapt quickly to new business challenges that regularly present themselves. Having resources to be flexible may transform or even save your business.
  • Planning – similar to the growth area above, planning is much easier when you can identify possible cash shortages or indeed a cash surplus so you can plan effectively. Organizations will be making sound decisions about the company based on solid evidence. Risks are minimized and planning become less reactionary and more deliberate.


If a company wants to maximize its cash position and cash flow, then taking bank rec automation into account is the first step. As we can see below, the benefits that bank rec automation brings to a company are very significant.

  • Hugely improved treasury visibility on your business cash flows.
  • Increased financial control by completing reconciliations daily or weekly rather than monthly.
  • Keeping you ahead of the curve and contributing to the projected growth of a company.
  • Enhances your cash position and leads to improvements in company cash flows.
  • A solid internal indicator of your current financial situation.
  • Ability to detect fraud, theft and errors within your organization.
  • Lead to increased opportunity to: invest, grow, develop and plan towards company goals.

Contact Us

If you would like to discuss how Cashbook can automate the Bank Reconciliation process for your company, you can get in touch with our team. You can call us on +353 61 338 400 (international) or 630-352-2228 (North America). Alternatively, you can email to get more information. We are looking forward to showing you how Cashbook can help your company realize the benefits of Bank Rec automation.

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