Best Software for Bank Reconciliation: Top Picks!

Every business needs to retain oversight of their finances to ensure everything is in order. Bank reconciliation is a must-do process that requires attention to detail, accuracy, and timeliness. Many companies turn to software for bank reconciliation to remove bottlenecks, connect data, and automate the critical workflow. 

We’re going to look at some of the best reconciliation tools that are worthwhile to consider. 

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What is Bank Reconciliation Software?

Bank reconciliation software is technology that automates bank reconciliation by collecting data and performing transaction matching. The software helps finance teams ensure that the bank statement balance is the same as the general ledger or check register balances. 

Bank reconciliation software like SolveXia removes manual inefficiencies, improves accuracy, and ensures visibility. It makes it possible to match millions of transactions in seconds, and alerts your team if a discrepancy is spotted so that they can take swift action to investigate and rectify. 

Why is Bank Reconciliation Important?

Bank reconciliation isn’t just important, it is fundamental for businesses that wish to remain confident about their financial health. It’s a checks-and-balances of sorts to make sure that the internal records are correct, compliant, and up-to-date. 

Not only does bank reconciliation make it possible to trust a company’s own records for decision-making purposes, but it also affects compliance. 

For example, publicly traded companies have regulated financial statements, so their accuracy is paramount. Bank reconciliation is one process in the month-end close checklist that then informs financial statements. 

What is the Best Software for Bank Reconciliation?

When searching for the best software for bank reconciliation, or corporate credit card reconciliation for that matter, there are many choices to consider. 

Knowing where to begin is typically the hardest part, but luckily, we’ve compiled some of the most popular and useful solutions to hopefully make your consideration process a bit smoother. 

Let’s take a look at five of the most notable contenders in the market:

1. SolveXia

SolveXia is a low-code platform that automates spreadsheet-driven data preparation and manual processes. It is able to connect and combine data, even from legacy systems, transform workflows, and provide advanced analytics. 

Along with being highly configurable, SolveXia can handle complex scenarios and can be implemented in just 30 minutes. SolveXia eliminates all the key challenges that come along with manual bank reconciliation, including:

• Struggling with multiple and disparate systems using various data formats
• Lack of standardization
• Reliance on Excel and manual efforts that are unlikely to be scalable
• Timing differences
• Complex matching rules 

Features: 

• Ability to unify across systems and support multiple data formats 
• Access to analytics for informed decision-making
• Customizable matching rules 
• Integration capabilities 
• Bank-grade security 

Pros:

• Scalable without sacrificing quality or speed
• Able to automate other important finance functions, such as: expense management, APRA reporting, regulatory reporting, revenue management, and more. 
• Drag-and-drop functionality makes it easy to use 
• Template library of workflows to choose from or customize your own 
• Cloud-based and accessible 

2. Xero 

Xero is accounting software that provides bank reconciliation automation. The software can be used for invoicing and expense tracking, as well. It is relatively easy-to-use and allows an unlimited number of users regardless of which plan you select. 

Features

• Connects to bank feeds to automate transaction imports
• Possible to reconcile accounts from credit card statements 
• Makes it possible to split transactions across categories 
• Integration capabilities 

Pros

• Side-by-side layouts to visualize transaction matching easily
• Considered to be relatively cost effective 

Cons 

• Cannot group payments into bank deposits
• Lacking in terms of live support 
• Cannot enter ending balances for checking accounts 

3. Cube

Cube is an FP&A software that assists finance professionals in using spreadsheets. With Cube, finance and accounting teams can automate their otherwise time-consuming manual tasks, freeing up time to focus on high-level responsibilities. 

Features

• Works within a familiar environment - the spreadsheet (can be considered a pro or a con, depending on desires) 
• Audit trails make it easy to track and investigate 
• Report distribution 

Pros

• Strong customer service
• Multi-currency support
• Automatic data consolidation across sources 

Cons 

• Difficulties in uploading models 
• Challenges in transfer data between “dimensions,” i.e. HR data to finance data 
• No AI capabilities 
• Not as scalable as some would hope 

4. Blackline

Another popular cloud-based solution is Blackline. Blackline offers bank reconciliation, along with approval workflows, regulatory compliance functions, and more. It can be used for task management to assign jobs and track progress. 

Features

• Finance management and task management in one 
• Cloud-based solution with real-time data updates 
• Customizable reports 

Pros

• Compatible with any file format to electronically store supporting documentation 
• Ability to add comments and tag users 
• Can set configurable certification thresholds to adhere to internal policies 

Cons 

• Relatively difficult user interface
• Requires training for higher levels of use 
• May be challenging to create matching rules 

5. Sage Intacct 

Last but not least, Sage Intacct presents a financial management software to automate financial processes. The cloud-based tool supports accounting, HR, and payroll processes, along with integration to eCommerce platforms, HR, and CRMs. 

Features

• Reporting capabilities 
• Customer support 
• Customizable workflows 

Pros

• Easy to integrate 
• Automate complex financial tasks
• Browser-based 

Cons

• May be slow and complicated to use
• Not able to handle all payment methods 
• Need to purchase additional modules for use 

What are the Key Features of Software for Bank Reconciliation?

Regardless of whichever bank reconciliation software you choose to implement, there are key features that you’ll want  your chosen solution to possess. 

Look out for the following:

1. Automated Matching

Of course, the primary need in bank reconciliation is transaction matching. You’ll want the tool to be able to compare bank records with internal records automatically and accurately. 

2. Reporting

The best solutions can generate reports and offer customizable dashboards, ensuring that key stakeholders and team members can quickly access the information they need in an easy-to-digest format. 

3. Data Validation

Access to analytics and insights is only trustworthy given that the data has been validated, cleansed, and updated. 

4. Bank Connections

Rather than having to manually upload bank statements, the top-tier tools integrate and connect with banks to automate the data collection aspect. 

This is particularly useful if you use multiple payment providers like Amazon, ebay, Worldpay, Paypal and Stripe and have a high volume of low value transactions. A bank reconciliation tool like SolveXia will reconcile all these in seconds instead of days. 

5. Security

When dealing with sensitive financial data, bank-grade security is a must, including encryption and multi-factor authentication, at the very least. 

What are the Benefits of Software for Bank Reconciliation?

Once you implement the best automated bank reconciliation software, you’ll be able to notice the advantages almost immediately. 

1. Increased Efficiency

Manual bank reconciliation is replete with challenges. For starters, manual errors are inevitable. But beyond being error-prone, manual bank reconciliation costs your team a lot of time and frustration. By automating the process, your business’ productivity will boom. 

2. Improved Accuracy

By eliminating paper-based trails and manual efforts, data is protected and accurate at all times. 

3. Better Security

Reconciliation software protects your most important financial data and allows access only to those who are permitted. 

4. Boosted Visibility

Rather than managers and executives having to wonder about the status or progress of reconciliations, software adds transparency into any business’ operations. Additionally, companies can strengthen their internal control. 

When businesses utilize bank reconciliation software like SolveXia, they are able to complete processes 85x faster with 90% fewer errors. The cloud-based solution can run 24/7, without interruption, if need be. 

How to Choose Software for Bank Reconciliation?

As we mentioned, knowing where to begin on your search for the best software for bank reconciliation can often stifle those searching. But, when you know what to look out for, it’s easier to narrow down the list of options. 

Here are some factors to remain aware of:

• Usability: You’ll want a tool that is easy-to-use for all technical levels of expertise 
• Scalability: It’s not just about where your business is now and how many transactions take place. Think about business growth so you can select a tool that can grow with your business. 
• Customer Support: Chances are, you’ll have a question at some point or another. That’s why it’s advisable to select a software with strong resources and support tools. 
• Integration Capabilities: Bank reconciliation software doesn’t operate in a silo, so make sure that your chosen solution can easily integrate with your existing systems as data accessibility is critical. 
• Pricing: Budget will undoubtedly impact your decision. 

Wrap Up

Now that you have a firm grasp of what software for bank reconciliation delivers, it’s as great a time as ever to implement a robust and user friendly reconciliation software like SolveXia! 

If you’re looking to streamline your reconciliation process (and finance functions), improve data accuracy, access insights, and boost business productivity, we hope we have now paved the perfect way to get started.