Is It Possible to Achieve Fully Automated Account Reconciliations for SMEs? | hylobiz®
The owner of Narayan Enterprise — Venkat Narayan Giri was looking at the ledgers, the accounting team had highlighted a mismatch of 2,34,192.43 INR. It was month’s end task and usually a mismatch of 10,000–25,000 INR was usual, but this time the sum was huge and accounting team has matched every record almost 4 times, but yet the “missing” entry was not found.
Since last week, the accounting team had been staying late till midnight to complete the month end task, and apart from the worry they were really looking tired. Managing multiple ERP’s, invoices, bank accounts, payment collection via Digital and cash mode — it was a humongous task!
Does the tale resonate with your team/business?
Account Reconciliations and Accounting Team
Account reconciliations is not an easy job for the accounting team. The below diagram shows how much data is fed to the books on daily basis and need to be reconciled by end of day/month.
That’s why a full automated reconciliation process is of utmost important, while automated reconciliation in excel can help, opting for a platform that not only connects to the ERP’s and Bank but also take care of the cash and digital payments of invoices is crucial.
How do you automate reconciliation process and can business achieve full automation?
No matter which vertical you belong to — Manufacturing, Retail, Pharmaceutical, Distribution or Construction you would be using following steps to run a business -
- Using one or multiple ERP’s or Accounting Software for automation of various processes.
- If you are running multiple businesses/offering different services even the business bank account can differ and so does the payments.
- Use of a HR Payroll system or a different ERP to manage your team salary and reimbursements
- Using a Tax management system to take care of taxes
- Agent Collection Team for Cash Collection
- Using other bank accounts for debt payments or EMI’s
If you are able to automate each of the above steps FULLY AUTOMATED RECONCILIATION can be achieved.
Hylobiz can assist you in achieving full automated reconciliation.
Read the blog originally published here : https://hylo.biz/is-it-possible-to-achieve-fully-automated-account-reconciliations-for-smes/
Originally published at https://hylo.biz on June 10, 2021.