5 Best Reconciliation Software: Ultimate Guide

Performing account reconciliation manually can feel like rowing a boat upstream. By using reconciliation software, you can have smooth sailing with utmost accuracy and efficiency. You’re already aware of the importance of account reconciliation, so let’s take a look at some of the best reconciliation software on the market and drill down into the details you should know when shopping for the best tool for you.

Coming Up

1. What is Account Reconciliation?

2. Why Use Reconciliation Software?

3. What is Account Payable Reconciliation?

4. What is Accounts Receivable Reconciliation?

5. What Features to Look For Choosing Balance Sheet Reconciliation Software?

6. What is the Best Reconciliation Software?

7. Wrap Up

What is Account Reconciliation?

Account reconciliation is an accounting process that compares internal financial data with external financial documents to ensure its accuracy. While account reconciliation can take place on a daily or weekly basis, almost every business is aware of the process during the month-end close.

The goal of account reconciliation is to locate, investigate, and rectify any discrepancies so that the month-end and year-end close are in order. For public companies, account reconciliation is mandated and regulated. For private companies, account reconciliation is just as important because the company’s finances will impact all business decisions.

Why Use Reconciliation Software?

While it’s possible to perform account reconciliation manually, you are likely to run into challenges. From bottlenecks and delays to human error mistakes, it pays to leverage reconciliation automation software for any of types of accounting reconciliation.

Here’s what you stand to gain with the reconciliation software:

1. Process standardisation: Account reconciliation software makes it possible to standardise the process every time since it runs reconciliation for you. This makes for a streamlined and accurate financial close process.

2. Delivered Insights: Automation software also provides data insights and analytics so that you can perform process improvement as you desire.

3. Decreased errors: With maximised internal control, reconciliation software helps to reduce errors and increase visibility.

4. Clear-cut responsibility: Using the reconciliation software allows you to assign roles so that everyone is acutely aware of their responsibility and held accountable.

5. Audit trails and records: All reconciliation history is securely stored for compliance and audit needs.

What is Account Payable Reconciliation?

Accounts payable reconciliation is the comparison of balances in financial records like the sub-ledger, general ledger, and accounts payable ageing report. The purpose of account payable reconciliation is to understand outstanding bills that have yet to be paid so that you can pay them in a timely manner.

You also want to make sure that the payables account balance in the general ledger is in alignment with the total of accounts payable.

What is Accounts Receivable Reconciliation?

Similarly, there is also the accounts receivable reconciliation process. Accounts receivable requires matching unpaid invoices/customer bills to the total amount reflected in the accounts receivable account of the general ledger.

The process ensures that all money that is due and owed to the company gets received. As the volume of transactions increases, along with payment methods and processors, the importance of accounts receivable reconciliation grows.

What Features to Look For Choosing Balance Sheet Reconciliation Software?

When searching for the best reconciliation software, there are key features to look out for.

Keep in mind this checklist on your shopping journey so you can choose the data reconciliation software for your business:

1. Platform: Most account reconciliation, including reconciliation software for banks, are set up as software-as-a-service and cloud-based. The other option is for on-premise platforms. Decide what kind of setup you want before looking around.

2. Security: Data security is of utmost importance. Financial data needs to be encrypted when at rest and when being transferred. Access controls are also necessary to be able to set up different permissions based on need and role.

3. Reporting: Most accounting tools offer dashboards for instant visibility and review. To easily understand data and visualise it, look for a tool that provides automated reporting (like SolveXia does).

4. Integrations: Business process software and accounting tools should be able to communicate to one another via integrations. This way, all data from new and legacy systems can be centralised and usable.

5. Scalability: Is the system able to grow with your business? Does it offer additional solutions beyond reconciliation to help automate and streamline your processes?
   

What is the Best Reconciliation Software?

It’s the moment we promised. We’re going to take a look at some of the key features of the following automated bank reconciliation software and overall reconciliation software options.

Based on the list of features above, here’s a look at some of the best reconciliation software available for businesses of every size:

1. SolveXia

SolveXia is more than a reconciliation software. It’s a low code automation platform designed for finance automation. Its a great tool for performing transaction matching and reconciliations in minutes to alleviating data management challenges, providing reporting and analytics, and enabling process improvement.

SolveXia is a low-code/no-code solution that will transform your business for the better. It helps your team to save time and reduce 98% or errors by removing bottlenecks and key-person dependencies through automation.

With SolveXia, you can streamline your most important business process while relying on safe-kept and clean data. From the accurate data, your business gains access to valuable insights for informed decision-making.

Additionally, SolveXia runs on the cloud and integrates with your current systems. In less than 30 minutes, you can start using the platform and reap 10x gains in your team’s productivity levels.

To run SolveXia’s reconciliation process, you can choose from its library of prebuilt processes or design your own using drag-and-drop building blocks. You can also use SolveXia for expense management, regulatory reporting, and rebate management, to name a few capabilities.

The system will standardise, automate, and generate complete processes so your team can focus on high-value responsibilities rather than data-heavy and repetitive tasks. Additional features include: audit trails, customisable dashboards and reports, bank-grade security, and data management.

Request a free demo to see how SolveXia can work for you!

2. BlackLine

BlackLine is a software-as-a-service (SaaS) platform that automates the reconciliation process with standardised templates. The platform provides an option of workflows to prepare statements.

To help with tax preparation, you also have the ability to store supporting documents through integration. With BlackLine, you can manage approval processes and help keep your company’s financials accurate across geographies and currencies.

3. Xero

Designed with small and medium businesses in mind, Xero offers a cloud-based accounting software that runs online. The bank account reconciliation software includes additional functions like processing invoices and tracking expenses.

It has the capability to integrate with third-party apps to help better manage accounting functions. Perhaps one of Xero’s greatest features is that you can have unlimited users for any of its plans.

4. ReconArt

As a web-based reconciliation tool, ReconArt supports individuals and companies with automation capabilities for financial processes. The app is able to match transactions and exceptions to streamline the account reconciliation processes.

From bank to balance sheet reconciliation, ReconArt also includes account receivable and account payable reconciliation. While its support options are limited and there’s a learning curve, the web-based app becomes intuitive and will help to save businesses time through standardisation and automation.

5. Redwood

Redwood is a cloud-based software-as-a-solution for finance and accounting processes. It operates on Linux and Windows and can be deployed on-premise. It features end-to-end automation, process mapping, and pre-automated tasks for process development. Redwood users can apply its functions for reconciliation, cash management, procure to pay solutions, and automated asset management.

Wrap Up

For any company looking to streamline processes and reap the benefits of automation, reconciliation software is a must-have. Reconciliation software makes it possible to maximise your team’s efficiency, remove key person dependencies, connect data systems, and secure information.

Beyond the logistics, your business will have data insights to function at an improved level with capabilities you could have otherwise only dreamed of. To see SolveXia in action and reap all the insights from your data, request a demo today.