The retail industry is a hugely competitive and changing environment, it can be very hard to keep current price points to ward off new competitors, turn a profit each year and also keep your customers satisfied. Organizations need to keep cashflows as consistent as possible throughout the year to achieve their goals. With a manual process it can be hard to get a meaningful insight into live financial data due to failings in cashflow management. As a result, retailers have been moving to Cash Management automation solutions such as Cashbook to help reconcile their books, and to maintain satisfactory cash flows throughout the financial year.
The issue with retail shops is that payments are made in a number of different ways by your customers. The multi-payment types include: cash, checks, credit cards and online sales. These multi-payment types can lead to a financial maze for companies, especially retailers with multiple stores and multiple banks/bank accounts. Most companies will wait until the end of the month to do their bank reconciliation, this is mainly because their archaic and outdated systems don’t allow overnight reconciliation of the cash. Credit card payments can also cause huge problems as the money can arrive up to two weeks after the sale. Credit card fees will have been applied, the initial sale amount and total amount received are not the same figure. Some companies use Excel to reconcile both bank and credit card transactions, this can be very time-consuming for your Finance Department.
With the Cashbook Bank Reconciliation tool, we use machine learning to automatically write off small differences up to a set threshold between the bank and ledger balance. By using specific store codes, our users can spot trends if these write-offs are happening too frequently. The key for any bank reconciliation is recognizing these issues early, and by running daily bank reconciliations Cashbook will become a very powerful tool for your business. Matching your sales data with all of the different payments types can also be very challenging, particularly if you have multiple outlets and stores. For example, some organizations could have 5 different bank accounts across 50 individual stores. With Cashbook’s Bank Reconciliation automation software, our customers can expect to have up to 80% of these multi-payment transaction types auto-reconciled.
The benefits of automating your bank reconciliation process can have a huge effect on growing your business. In our experience, after we have automated the bank reconciliation process for our clients, they went on to open multiple new stores and outlets a lot earlier than they had anticipated. Other benefits were that the automation led to a 50% decrease in resources required to complete the bank reconciliations for all stores and outlets. The new developments in Cash Application Automation have seen Robotic Process Automation (RPA), Machine Learning (ML) and Artificial Intelligence (AI) push the boundaries of what can be achieved today. Cashbook use RPA, ML and AI in our software to automate and process key Cash Application procedures for our customers. This allows for labour-intensive, repetitive and complex procedures to be automated to exceptionally high levels.
Cashbook have a number of retail customers that we work closely with, we are skilled in solving all of the problems which are facing retailers today. Cashbook has been integrated with multiple ERP systems and banks, it also has multi-lingual and multi-currency capability. It is our vast experience and cutting edge technology that sets us apart from the competition. Get in touch with us today, and request a free product demo or discovery call to see how we can transform your retail bank reconciliation process.