Are you looking for reconciliation software that is best for your business? Do you want to prevent title insurance theft and escrow? What are the features of reconciliation software? Does this software have any benefits? Find out why you should get this software for your business to succeed further.
Reconciliation software
Reconciliation software automates the process of account reconciliation. It enables the creation of high-quality and accurate financial statements. It helps accountants to verify if their balance sheet is appropriate, correct, and compliant. Reconciliation software compares information from banking institutions against internal records. If there are any discrepancies, it is flagged for review and reconciliation. It offers extra fraud protection and updates you if there is an irregularity in your trust accounts. It is an affordable and simple solution that saves you time. It allows you to focus on maximizing profits.
Daily reconciliation services
- Clearing items that do not require additional information or investigations daily.
- Protects you against fraud and alerts you in case of any suspicious activity.
3-way monthly reconciliation
To clear any exception or outstanding items, you will need to work with a reconciler. Trial balance helps in the preparation of Escrow trust accounts.
Reconciliation software features
- Financial reporting.
It helps you to measure your financial position and performance by generating balance sheets and income statements.
- Bank reconciliation.
It compares bank statements with financial records and accounting.
- Document management.
The financial documents are uploaded, stored, and shared in a common location that stakeholders can easily access. You should use industry-standard security features to ensure your documents are secure at all times.
- Multiple currencies.
It enables you to calculate using the international currency systems. This software will convert the currencies and reconcile the differences.
- ERP integration.
A simple application programming interface (API) connects the existing enterprise resource planning (ERP) with reconciliation software.
- Exception management.
If there is a financial anomaly outside the expected values, it will locate, explain, and address the issue.
- Data exportation and importation.
Reconciliation reports and data are exported to other systems. Accounting data from other applications is acquired. Reports and information are exchanged to and from the reconciliation software.
Benefits of account reconciliation software
- Human error is reduced.
When an accountant is working on various spreadsheets, they may enter the wrong numerical data.
- Increased productivity.
This software deals with tedious and repetitive tasks. It allows employees to focus on increasing their productivity and completing high-level tasks.
- Low operational cost.
This software ensures quick and efficient work completion. Reduced processing time means the operational cost is less.
- Better data security.
The software has ultimate data security features.
- Audit risks are minimized.
This software tracks users’ access and history. It creates audit reports.
- Improves transaction visibility and transparency for your business.
- It is a cloud-based solution that provides a platform that is easy to access, flexible and secure.
Account reconciliation process
- Comparing the internal cash register with the bank statement.
It is to ensure that the payments match the deposits in both records. It will help to identify if there is a bank statement not supported by evidence.
- Find out payments that are recorded in the cash register and not in the bank statement.
Some transactions are recorded as paid in the cash register but appear unpaid in the bank statement. Deduct these transactions from the bank statement balance.
- Ensures that deposits and cash receipts are recorded on bank statements and cash registers.
The cash register and bank statement should have records of any money received.
- Look out for bank errors.
A transaction can be recorded as paid in an internal cash register but stated as unpaid in the bank statement. To reflect the right amount, you will need to subtract, add or modify the statement.
- Balancing of records.
To demonstrate good financial health, the external and internal records should be balanced. Any error should be identified and rectified.
Conclusion
Accurate accounting is essential to any business. Account reconciliation ensures that the internal and external financial documents match. Reconciliation software has made this process easy as it automates the account reconciliation process ensuring high quality and accurate financial statements are created. Financial reporting, multiple currencies, ERP integration, document management, bank reconciliation, and financial reporting are the most common features of reconciliation software. Account reconciliation software has benefits that include minimized audit risks, better data systems, reduced operational costs, increased productivity, and reduced human error.