May 23rd, 2016

Bank Reconciliation Automation: “Supposed” Myths Debunked

The bank reconciliation process is essential to having a clear understanding of business performance and to facilitate efficient business planning.  However, many large organisations still conduct bank reconciliation processes manually, which ensues a long, frustrating, labour intensive process. With manual bank reconciliation comes a high propensity for human error too. This leads to inefficiencies in several other cash management processes and creates difficulties in the month end reporting process.


Bank Reconciliation Software can completely transform how your finance team reconciles bank statements. All bank transactions are reconciled from their general ledger control account with ERP data that has hit your bank account. All relevant banking data is reconciled through one central tool, resulting in smarter, faster, more efficient bank reconciliation. However, many companies are avoiding making the move to automated bank reconciliation due to a number of supposed myths associated with this type of software.


To help you to gain clarity and develop a more thorough understanding of bank reconciliation automation software, we’ve “debunked” some of the most popular myths you are likely to have come across.


Myth #1: The software must be expensive

With all software upgrades, there will be initial costs. The important thing to consider is how bank reconciliation automation can help your business in the medium to long term. With bank reconciliation software, cost savings can be achieved within a matter of months as the solution can work to immediately empower unprecedented automation. This enables large organisations to reduce the number of people working on bank reconciliation processes and move staff to higher value work. Bank reconciliation automation software also works to reduce banking fees while minimising the associated cost of errors.


Myth #2: The software will take too long to implement

All implementations are dependent on a number of factors such as the number of countries that they operate in, the ERP system that is in place and the number of bank accounts they use. Our efficient team will quote a timeframe for clients and their teams, so that they know exactly where they stand.


Our implementation process encompasses installation, setup, testing, training, user testing and sign-off.  The Cashbook team spend in the region of 15 to 30 man days on each implementation, directing the project and working closely with your finance and IT teams. On average, bank reconciliation automation software implementations take up to 3 months, some as little as 6 weeks while global roll-outs can take up to 6 months.


Myth #3: It will be too difficult to train our staff members to use the software

This is one of the frequently quoted myths that we encounter. However, bank reconciliation software is very powerful and there is minimal training involved to get those who will be using it up to speed. Your Cashbook Implementation Manager will provide on-site training to your finance and IT teams. All training is completed using clients own data and processes and usually takes just 1 to 2 days to ensure everyone is sufficiently trained.


Myth #4: Bank Reconciliation Software only works with a limited number of ERP’s

Cashbook’s bank reconciliation automation software provides a multi-currency solution that can be deployed across multiple environments and ERP systems.  Our bank reconciliation software solution can be integrated with a number of major ERP systems such as Oracle, BPCS, SAP and JDE. We are also constantly expanding our level of integration with other ERP systems.


Myth #5:  Bank Reconciliation is only for Accounts Payable checks

At Cashbook, our automation software caters for both cash application and accounts payable processes.  It is equally important for the bank reconciliation process that inbound receipts are reconciled to the general ledger.  Cashbook also facilitates automatic self reconciling  transactions for things like bank charges and interest fees.


Myth #6:  Our transactions can’t be automated

Many companies face difficulties with bank data being different to General Ledger data and therefore believe that automation isn’t possible. However, Cashbook has 20+ years helping companies find common reference information. We have specialized matching tools to make sense of your data.


Myth #7:  There are too many bank and credit card files and too many timing differences.

Does your organisation manage transactions from different banks and different countries across the globe? Cashbook have worked with 200 different banks from around the world. We upload files from all the major credit card companies. Our matching rules take into account timing differences.  We also  provide clarity around unmatched items that must be carried forward.


Do you want to transform your bank reconciliation process?

Cashbook Bank Reconciliation Software offers your organisation an intelligent global solution, that bolts onto your current ERP system. Introduce deep intelligence, an unmatched level of automation and real time control and visibility to your finance processes.


Request a demo today to discover what level of bank reconciliation automation your organisation can achieve.<

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