Reconciliation Software Comparison: Expert’s Guide

Every CFO knows the value and importance of performing timely, accurate, and consistent account reconciliations. That’s why they make use of reconciliation tools to streamline the process, cut costs, and save time. 

To help figure out the best reconciliation software, we’ve compiled our own reconciliation software comparison guide for your review. Keep reading to learn more. 

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What is Reconciliation Software?

Reconciliation software is technology that automates the reconciliation process by collecting data from various sources, performing transaction matching, identifying errors, and validating account balances. 

The best reconciliation tools possess the following functions:

• Automated account balance tracking 
• Automated reporting 
• Transaction matching
• Checking account balances against ledgers 
• Assisting with various types of reconciliation, i.e.: credit card reconciliation, balance sheet reconciliation, intercompany reconciliation, etc. 

What is the Best Reconciliation Software?

Now, it’s time to look at our top five favorite reconciliation tools that comprise our reconciliation software comparison list:

1. SolveXia

SolveXia is a low-code finance automation platform that automates spreadsheet-driven data, manual processes, and key finance functions. 

Features

• Connect and combine data 
• Automate finance functions, including but not limited to reconciliation 
• Access advanced analytics 
• Secure audit trails with data governance 
• Customizable dashboards and reporting 
• Cloud-based and accessible with access controls 
• Bank-grade security 
• Made for any business size, including enterprises 

Pros

• Easy-to-use interface with drag-and-drop functionality 
• Library of workflow templates that are pre-built 
• Transaction matching in minutes 
• Ability to set one-to-one and one-to-many rules for reconciliation 
• Made to scale
• Rapid results and measurable ROI 

Use Cases 

• Reconciliation
• Rebate management
• Regulatory reporting
• Expense management
• Payment management
• APRA reporting
• Process optimization 

2. QuickBooks

A popular accounting software for mostly mid-size organizations, QuickBooks is a great choice for those looking to automate their accounting functions. 

Features

• Automates data entry through integration with banks and systems 
• Customizable dashboards 
• Intuitive reports 

Pros

• Multi-currency reconciliation capabilities 
• Highlights discrepancies between statements and internal documentation 
• Matches transactions with bank statements and credit cards automatically 
• Quick migration of existing financial data 
• Works quickly and is scalable 

Cons

• Lacks some customization functions 
• Intended mostly for small and mid-size organizations, rather than large enterprises 
• Reporting function may crash depending on file size 

Use Cases 

• Expense tracking
• Payroll
• Time tracking
• Virtual bookkeeping
• Invoicing 

3. Xero 

Xero is another well-suited accounting software for small and medium-sized businesses. 

Features

• Stores secure audit trails 
• Automatic transaction matching for reconciliations 
• Multiple source reconciliation function 
• Financial statement analysis 

Pros

• Removes duplicate line items automatically 
• Can upload bulk invoices 
• Multi-factor authentication and encryption for top-tier security 
• Unlimited users on all plans 

Cons

• Limited customer support (online only) 
• Can’t group multiple checks or cash in a single deposit 
• Can’t enter ending balances for checking accounts  

Use Cases 

• Bill pay 
• Payroll 
• Claim expenses 
• Receive payments 
• Project tracking 
• Reporting 
• Purchase orders 

4. BlackLine

BlackLine’s cloud-based solution provides accounting automation to perform account reconciliation, task management, and financial close processes. 

Features

• Transaction matching 
• Dashboards with real-time updates 
• Rule-based workflows that are configurable 
• Ability to assign deadlines on tasks 
• Report generation with customization 

Pros

• Import GL and sub-ledger balances automatically 
• Offers reconciliation templates 
• Automated journal entry approvals 

Cons

• Relatively less intuitive than other solutions
• Admins are the only users allowed to create journal entries
• May take time to implement 
• Doesn’t share pricing publicly
  

Use Cases 

• Account reconciliation 
• Smart close 
• Task management 

5. ReconArt 

ReconArt is a bank reconciliation software that’s designed specifically for the function of reconciliation. 

Features

• Exception management 
• Ensures accurate records at the time of month-end close 
• Able to schedule tasks and imports 
• High volume transaction matching 
• Variance analysis 

Pros

• Approval workflows 
• Integrates with existing tech stack 
• Can set up rules for ongoing transactions 

Cons

• Steep learning curve 
• Hard to clear uploaded data 

Use Cases 

• Credit card reconciliation 
• Bank reconciliation
• Account reconciliation 
• Trades reconciliation
• Financial close management 
• Intercompany reconciliation 

What are the Types of Reconciliation Software?

Just as there are different types of reconciliation, there are different types of reconciliation software that coincides with the process you’re looking to perform. Some tools, like SolveXia, can be used for various types of reconciliation, as opposed to specific solutions like bank reconciliation software. 

The kinds include:

• Account Reconciliation Software: This technology compares your general ledger with other financial records to ensure balances are aligned. 
• Balance Sheet Reconciliation Software: Balance sheet reconciliation software reconciles the balance sheet with other financial documentation. The software removes the struggle of having to compare across spreadsheets. 
• Bank Reconciliation Software: Bank reconciliation software compares the bank statement with internal records to make sure transactions match and the final balances are the same. 

How to Choose the Best Reconciliation Software?

When going through any reconciliation software comparison, the number one question you seek to answer is, “Which is best for my business?” While every business has their own unique needs, there are a few features and functions that you’d want your chosen technology to possess. 

These include: 

1. Automated Data Entry

Since automated reconciliation removes the need for manual work, you’ll want to make sure that it can automatically extract data from various file formats and sources, too. 

2. Integration

The best reconciliation software integrates with your existing tech stack and ERPs, enabling automatic data connections and transfers. 

3. Ease-of-Use

Since people with all different levels of technical ability will be working with the solution, it’s optimal if it is easy-to-use and intuitive for everyone. 

4. Reporting Functionality

Automated and customizable reports offer a visual way to review data and analytics in order to make informed decisions. SolveXia makes it easy to customize reports and dashboards based on user type, according to the information that is most valuable for them to see. 

5. Scalability

Cloud-based software can scale alongside your business, so even as transaction volume grows, the solution does not slow down or sacrifice accuracy. 

6. Security

Since you’re dealing with sensitive data, it’s paramount to have enterprise-grade security. 

7. Advanced Analytics

Along with reconciliation, the most robust financial automation solutions can conduct advanced analytics. This way, you can transform your business’ data into valuable insights. 

What are the Benefits of Reconciliation Software?

Reconciliation software is a no-brainer for any business, as every business requires reconciliation to be performed continuously and accurately. When you implement reconciliation software, you stand to gain:

1. Time Savings

Rather than having to collect data from different sources and spreadsheets and rely on team members to manually perform transaction matching, automated reconciliation software does this all for you. This results in massive time savings. 

2. Error Reduction

Manual data entry and tasks result in mistakes, no matter how much attention to detail there is. By adding automation to the mix, you can reduce errors dramatically– in the case of SolveXia, by 90% or more! 

3. Increased Compliance

With fewer errors and the timely execution of reconciliation, you can reduce mistakes and catch fraudulent activity early enough, thereby improving compliance measures and reducing risks. 

4. Boosted Visibility 

Gone are the days where financial data and important analytics are siloed in one department. With automated finance solutions, relevant stakeholders can increase internal control and visibility into how processes are faring. 

5. Happier Workforce

Since repetitive and data-heavy manual work is often a drag for your high-skilled employees, you can free up their time from having to work on such duties. 

Instead, they can focus on high-level and value-add responsibilities that will make them feel more valued. In turn, you can increase employee satisfaction and work to reduce turnover. 

How to Know if You Need Reconciliation Software?

Do your financial close processes take a lot of time? Are you dealing with disconnected financial data that’s hard to find and access? Are your financial statements filled with inaccuracies? Do you wish your finance team had more time to focus on strategy and planning for the future? 

If you answered yes to any of these questions, then reconciliation software is a must-have! Moreso, reconciliation software is beneficial for businesses of any size. The reconciliation software comparison above showcases how it can transform your business for the better. 

Interested to see how easy a reconciliation tool like SolveXia is to use and what it can offer your business? Request a demo! 

Closing Thoughts

With our reconciliation software comparison in mind, it’s time to make some smart decisions. 

Implementing reconciliation software will save your business time, reduce mistakes, cut costs, increase accuracy, and ensure that you can perform your critical financial close processes on time, month-in and month-out.