The biggest reconciliation challenges
Businesses may face several hurdles when reconciling their financial records. Here are some of the biggest challenges:
Volume of transactions: If a business has a high volume of transactions, it can be time-consuming to reconcile them all. This can lead to errors or inconsistencies in the records if not properly managed.
- Discrepancies or errors: Identifying discrepancies or mistakes can be challenging, especially if there are multiple sources of data or if the records aren't kept up-to-date.
- Human error: Mistakes can happen during reconciliation, especially if your team completes it manually. This manual process can lead to inaccurate records or errors that are difficult to detect.
- Timing: Identifying and correcting errors or discrepancies will be difficult if you don't complete the reconciliation process on time. The delays can lead to late financial reporting or inaccurate financial statements.
- Lack of resources: If a business doesn't have the necessary resources, such as staff or technology, it can be challenging to keep up with the volume of transactions and ensure accuracy.
- Complex transactions: Some transactions can be complicated, involving multiple parties or currencies, which can make reconciliation more challenging and time-consuming.
Businesses often introduce technology to help streamline the reconciliation process and reduce errors. These introductions may include tech like using automated reconciliation software, spend management solutions, and accounting software or ERPs.
How can Payhawk streamline reconciliation at your business?
Learn how the team at Essentia Analytics, London, got a really quick return on investment from onboarding with Payhawk. And how our spend management solution, including corporate credit cards and expense management + an integration with Xero accounting software, has helped them avoid rekey entries and errors.
The Essentia Analytics team has also halved their month-end close time from ten to five days.
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