Simplifying Bank Reconciliation with Technology
Maintaining accurate records of your transactions is a key to ensuring success to any business. While it is important you keep your own detailed accounting records, it is just as critical that you are able to reconcile those records with your bank statements to avoid three common pitfalls company’s face.
Three Pitfalls Company’s Face With Manual Record Keeping
- Inaccurate perception of the company’s performance – As a business owner, you want your business to thrive. If it is not thriving, you will want to know exactly what is going on so that you can take corrective measures. If you try to reconcile your bank statements with your own records manually, it can be challenging to have a clear image of your company’s performance. Your perception of the financial situation may be wrong causing all kinds of issues.
- Overestimating the available cash – You or one of your employees could mistakenly fail to record a major payment or expense in your books. If you neglect to reconcile your bank statement with your records, you could miss that payment and rely on a higher amount of available cash. The impact of thinking you have more cash than you do could be disastrous and embarrassing. In addition, you could make purchase commitments you are unable to keep which damage your credibility with suppliers, business partners, and customers.
- Unprocessed transaction follow-up – You could issue checks to your suppliers or business partners assuming that you have paid your outstanding debts. However, what if one of those checks gets lost? Your records might show that you have made the payment, but your suppliers or partners have no such record. This assumption could compromise your relationships. Businesses that do their bank statement reconciliation manually often find themselves renegotiating payment arrangements because the money never left the account.
Technology Simplifies and Automates Bank Statement Reconciliation
Because everything is already in one system, Denali’s suite allows you to reconcile your accounts three easy steps:
- Obtain your bank statement
- Import your credit/debit card transactions and enter any cash transactions
- Compare balances and document differences – When you are done the records in Denali and your bank statement should be identical. If there are issues, you can make adjustments.
While it is your choice whether you do your business reconciliation manually or with a software such as ours, you should keep in mind that using a solution like Denali is much more efficient, as it allows you to:
- Process hundreds of transactions at the same time
- Identify any missing checks
- Manage several bank accounts
- Identify and check suspicious transactions
- Track various department expenses
- Schedule regular transactions
We’d love to hear from you and your thoughts about the future of Bank Reconciliation automation. Please leave a comment below: