Best GL Reconciliation Software: Ultimate Guide

Your company’s general ledger should serve as your point of truth for all your financial transactions and accounts. In order to ensure that it is accurately reflecting reality, general ledger reconciliation is a must. To streamline the process, you can rely on the aid of GL reconciliation software. 

We’re going to see how the best reconciliation software can benefit your business.

Coming Up

What is the Best GL Reconciliation Software?

There are many automated reconciliation tools to consider. 

Let’s take a look at some of our top reconciliation tools in the market:

1. SolveXia

SolveXia is a low-code financial automation platform that removes your reliance on spreadsheet-driven data and enables automation of your most critical finance processes. 

Features

• Enterprise-Grade Automation: Data processing, reporting, audit trails, and more.
• Data Ingestion and Matching: Can pull and upload data in any format and set complex data matching rules. 
• Security: The software is always up-to-date with the latest enterprise-security measures. 
• Integration: Cloud-based and able to integrate with your existing tech stack, including legacy systems. 
• User Management: Setup typically takes under 30 minutes, with no need for technical assistance when adding new users, which can be done immediately. 

Pros

• Smart Matching Capabilities: Smart matching to reconcile complex scenarios, such as one-to-many and many-to-many relationships. 
• Data Persistence: Eliminates timing differences in transactions, making it easier to investigate discrepancies. 
• Customizable Dashboards: Easy to personalize dashboards and reports per user’s need. 
• Intuitive: Easy-to-use interface designed for any technical level, featuring drag-and-drop functionality along with a library of pre-built templates to automate workflows. 

2. FloQast 

FloQast is an accounting software that offers reconciliation automation to help close books faster. 

Features

• AI-powered: automated reconciliation tool 
• Task management: Built-in feature allows you to delegate responsibilities 

Pros

• Collaborative work environment 
• Easy-to-use 
• Integrates with your ERP and Excel 

Cons

• May be costly 
• Made for reconciliation specifically, not all other FP&A processes 
• Considerable learning curve 

3. Xero

Designed for small and medium-sized businesses, Xero is another accounting automation platform that makes it high on the list. 

Features

• Automatic audit trails
• Time savings feature that removes repeating transactions automatically 
• Customizable reporting available 

Pros

• Doesn’t have a steep learning curve
• Offers a great mobile app to work on the go 
• Automatically imports bank feeds 

Cons 

• Not intended to scale for larger sized organizations 
• May lack support 

4. Oracle Netsuite 

A popular cloud-based ERP platform, Oracle NetSuite also delivers automated reconciliation. 

Features

• Real-time analytics 
• Able to standardize account reconciliation processes 
• Can use for multiple processes, not just reconciliation 

Pros

• Scalable platform that grows with your business’ needs 
• Easy-to-use and intuitive interface 
• Real-time financial reporting 

Cons

• Report building can be complex 
• Offers many solutions, so may be too much to handle if you’re using it for limited use cases 

5. Sage Intacct 

Sage Intacct is a software that automates accounting, payroll, and HR business processes. 

Features

• Multi-currency support 
• Customizable reconciliation workflows 
• Collaboration tools so accounting teams and CFOs can work together 

Pros

• Integrates with over 350 third-party apps 
• Real-time view of company financials
• Customizable workflows 
• 24/7 support 

Cons

• May be relatively costly 
• Steep learning curve because of all of its offerings 

Why is Account Reconciliation Important?

Completing the month-end close process in time is just one of the reasons why account reconciliation is so important. On top of that, it helps to budget and forecast for the future based on knowing your revenue and expenses with accuracy. 

Along with these reasons, account reconciliation also aids in:

• Understanding your cash flow
• Resolving errors and discrepancies quickly 
• Reducing the chance of fraud 
• Ensuring accurate financial reports 

What is GL Reconciliation Software?

GL reconciliation software connects to your existing systems, such as ERPs and banks, for example, to centralize and collect data for transaction matching purposes. 

The software standardizes and compares transactions within your internal ledger and external sources to make sure that they match up. 

GL reconciliation software helps to:

1. Automate Tasks

Your accounting team gets to save time as the software removes the need for manual work and tedious transaction matching by hand. 

2. Prevent Errors

Given the automation capabilities, you immediately can reduce and prevent manual errors. 

3. Provide Audit Trails

The software stores all data and activities securely, so it’s easy to pull audit trails.

What are the Types of Reconciliation Software?

There are various types of reconciliation software to assist with your reconciliation needs. These include:

1. GL reconciliation software

GL reconciliation software matches the general ledger’s records against third-party financial data by extracting data from the necessary sources and comparing transactions. 

2. Bank statement reconciliation software

Another important type of reconciliation is bank reconciliation. Bank reconciliation software compares the internal books with bank statements to make sure that they are in line with one another. It can be used to create reports about outstanding checks and cash flow. 

3. Balance sheet reconciliation software

Balance sheet reconciliation reviews the balance sheet with financial documentation. Typically, financial data is stored across different sources and spreadsheets, so this software offers a single source of truth. 

What are the Benefits of GL Reconciliation Software?

No one likes to spend countless hours comparing records by hand. GL reconciliation software takes the pain out of reconciliation and makes your month-end close process more efficient. 

By using general ledger reconciliation software like SolveXia to automate your processes, you will be able to:

• Improve visibility into your processes and financial status 
• Automate and streamline processes to save time and minimize errors
• Mitigate risks and improve risk management by reducing instances of manual mistakes 
• Access audit trails immediately 
• Improve workforce morale by removing redundant tasks from your team’s to-do lists 
• Create a single and trustworthy source of truth
• Adequately protect your business’ most sensitive financial data
• With cloud-based solutions, gain access to key insights and information from wherever you are

What are the Key Features of GL Reconciliation Software?

Comparing the best GL reconciliation software means that you’ll have to have a clear idea on what your business wants and needs. Once you have your goals defined, it’s time to consider your options. 

When you do, be sure to look out for the key features of GL reconciliation software:

• Data entry and import: Look for solutions that can automatically connect and pull data from the necessary sources in any format 
• Templates and functionality: Reconciliation software like SolveXia makes it easy to use for anyone, offering pre-built templates for workflows. Additionally, to customize workflows, you can rely on drag-and-drop functionality, with no need to code or request help from an IT team. 
• Integration: Since your existing tech stack holds valuable data, you wouldn’t want to lose it or miss out on using it. That’s why it’s best to select GL reconciliation software that integrates with your systems. 
• Audit Trails: With access to audit trails, you can remain confident in demonstrating compliance and adding visibility to your workflows. 
• Reporting: The best tools provide visualizations via reports and dashboards that can be customized based on user needs. 
• Analytics: Along with transaction matching, solutions like SolveXia embed powerful analytics into your workflows to provide insights to your stakeholders. 

Why Streamline the GL Reconciliation Process?

The GL reconciliation process should ideally take place at least once a month. If you’re wondering if you’re in need of streamlining and automating your process, consider the following: 

1. Growth

Is the number of transactions that your business is processing growing? Once you get to a certain point, you’ll no longer be able to manage it manually with utmost accuracy, no matter how hard you try. 

2. Compliance

Some industries are heavily regulated when it comes to financial statements and reconciliation, so it’s best to maintain internal control of your critical processes to reduce compliance risk. 

3. Time

Is your team ending up taking days or weeks to complete reconciliations and close the books? Missing deadlines is ominous, but with GL reconciliation software, you never have to worry about it again. 

Why Implement GL Reconciliation Software?

Every company aims to have efficient operations. By implementing GL reconciliation software, you’re one step closer to achieving this goal. 

Automated reconciliation workflows can transform your finance team for the better by:

1. Adding Standardization

With remote and spread out workforces, the reconciliation and month-end close process may be difficult to standardize. By adding GL reconciliation software, the process runs the same way every time, and everyone knows what to expect. 

2. Meeting Deadlines

Rather than having to spend weeks searching for the required data to even start the reconciliation process, GL reconciliation software automates data collection and standardization. 

In this way, you can ensure you meet month-end close deadlines with an accurate understanding of your business’ financial health. 

3. Reducing Errors

Regardless of how skilled your finance and accounting team members are, mistakes are ultimately unavoidable. By automating the data-heavy process, you mitigate errors by over 90%.

4. Increasing Visibility

Say goodbye to having to guess about the status of your most critical business processes. With GL reconciliation software, you have an added layer of visibility and internal control. 

Wrap Up

Every business has to conduct reconciliation, and that’s reason enough to use a GL reconciliation software. 

When you implement a low-code reconciliation solution like SolveXia, your business is able to save time, prevent errors, reduce costs, increase agility, and streamline your workflows. Ready to see how easy a reconciliation tool like SolveXia is to use? Click here to see a demo at your request.