Invoice Reconciliation — Everything a business need to know about it | hylobiz®

As a business owner, have you observed irregularities with an invoice?

Most businesses know the importance of keeping the accounting clear, but with multiple stakeholders involved, one still faces transaction mismatch, fraud, and human errors.

Invoice Reconciliation can help you avoid any such issues. Today’s post will aid in understanding the benefits, issues of invoice reconciliation, and getting back on track with your business. So let’s get started -

What is Invoice Reconciliation

For example — if you a distributor of Pfizer and offer medicines to retail shops. Retail Shop 1 raised a PO [Purchase Order] and sent it to the distributor.

The distributor packs the order and sent it to the Retailer with the invoice details

After receiving the invoice, the Retailer, as per the SLA, makes the payment.

By the EOD, the accounting team would match the credit that happened with the invoice number.

This matching of the transaction to its designated invoice is called Invoice Reconciliation.

Why is Invoice Reconciliation Important?

Know the Business Health

As a business owner, you would have paid your supplier for the items, but your buyers are yet to pay you. That is an indicator of too much money invested, and you need to strategize to collect payment and regain your business health.

Identify Fraud

Prepped for Legal Audits

Hence reconciling periodically is a good practice and preps your business from any fines/penalties.

Expand Your Business

If you are struggling to get your invoices paid on time, check our post Top Invoicing Mistakes made by Business Owners, which delays the payment, and How Hylobiz can help avoid them .

Why Invoice Reconciliation needs to be Automated?

Still in a dilemma of whether to opt for an automated reconciliation tool, check six benefits of automated reconciliations for businesses .

All of these complications make it hard to scale the manual reconciliation, and that’s why Automated reconciliation is the need of the hour and way forward for your business growth.

How do you Reconcile an Invoice?

  1. Signup on Hylobiz with the mobile number here.
  2. If you are using different ERP’s or accounting software, you can integrate them with Hylobiz in just three steps after the login from the Dashboard or via Business Settings

3. You can also put in your bank account details from Business Settings. BE assured Hylobiz would never ask for OTP’s or password of your bank account. It is to facilitate invoice payment and reconciliation we need your bank account details

4. Now create invoices

5. Your Dashboard would be updated in real-time with each payment received

6. You can also generate the Reconciliation report under the Reports menu

Hylobiz is a Digital-first platform for all your Offline and Online Invoice Payments Collection on Time

Hylobiz automates manual processes, lowers transaction costs, and speeds up invoice collection.

Here are some of the features Hylobiz offers -

Invoice Collection — Hylobiz Receivables help you digitizing your collection process. You get the power to send your invoices or pro forma to your customers with a secured payment links giving multiple payment methods to your customers to make digital payments

ERP Integration — Access your ERP with our pre-integrated ERP list with Hylobiz, or upload your invoice file to kick start your digital collections with a simple two-step process

Automated Reconciliation — Hylobiz helps you with automated reconciliations of your banking transactions. All your receivables and payables are consolidated and updated in a single report with a Unique Payment Identity Number.

Credit Card, loans, and Insurance — Get Business Credit Card, loans, and health or inventory insurance. You can also extend these benefits to your customer who pays on time.

If you want to know if Hylobiz and your company can be a perfect match, schedule a free demo today.

Originally published at https://hylo.biz on June 23, 2021.

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