Reconciliation software can integrate with your ERP (Enterprise Resource Planning) system to automate the process of verifying the accuracy of your financial records. Here's how it works:
Data extraction: The reconciliation software will extract data from your ERP system, including your general ledger and accounts payable/receivable.
Data comparison: The software will then compare this data with data from external sources such as bank statements, credit card statements, or other financial statements.
Matching: The software will attempt to match transactions in your ERP system with transactions in the external sources. Any discrepancies or errors will be flagged for review.
Exception handling: The reconciliation software will provide tools to handle exceptions, such as incorrect transactions, missing transactions, or discrepancies. The system will provide alerts and notifications to the appropriate personnel to resolve these issues.
Reporting: The reconciliation software will generate detailed reports that provide insight into financial activities, such as accounts receivable, accounts payable, and cash flow. These reports can help businesses make better-informed decisions.
Automation: The entire process can be automated, saving time and reducing the risk of errors associated with manual reconciliation.
Overall, reconciliation software can help ensure the accuracy and integrity of your financial records by automating the reconciliation process and integrating with your ERP system.