Reconciliation in Accounting
Reconciliation in accounting is the process of comparing two sets of financial records to check that figures are accurate and in agreement. Reconciliation also verifies the general ledger accounts’ consistency, accuracy, and completeness.
Source – Google images |Reconciliation in Accounting
Regardless of whether you are a sole proprietor or a business, you must understand the cash flow profile of your venture. In order to do this, it is critical to reconcile your financial records. However, as the records grow larger, the likelihood of error increases, as does the time commitment. This steals focus away from your core competency of running the business as opposed to doing the administrative work of tracking money flows.
This is precisely where Accounting Automation software comes in to make the necessary but mundane task of keeping your books organized seamless and accurate. Let’s see how this kind of software can help you:
This kind of software carries out important accountancy tasks such as account reconciliation, financial data updating, and financial statement preparation without the involvement of a human. This means you can save labor costs in your business!
Source – Tirnu |Accounting automation
It also helps you minimize overall financial risk in your business by cutting down on time and expense spent on reconciliation while also minimizing the possibility of human errors associated with manual reconciliation.
Accounting automation software eliminates the most inefficient parts of an accountant’s job. This allows the accountant more time to think critically, plan ahead, and communicate with business operators to improve operations rather than simply track operations. It will also give your accountant a much more engaging and fulfilling job responsibility as it frees up scope for more stimulating, high-value work.
Tirnu’s Accounting Automation software also includes an interactive platform that allows businesses to reconcile their financial records in an easy way. Here is some more detail and empirical support proving the benefits of Accounting Automation Software:
A survey of 200 UK accountants revealed that simple tasks, when automated, could on average save workers 2 hours per day. Even more so, Scottish accountants thought they could free up nearly £120,000 in yearly untapped revenue by cutting 3–4 hours daily! This means that an investment in an accounting automation software solution can save you the headcount cost of one or two personnel in your business.
Source – Google images |Benefits of accounting software
Here is a list of common benefits of automating your accounting processes:
Accounting process automation saves you and your team time. Because all of the data is already in the system, reconciling information is quick. making workers to produce more output per hour.
All of the necessary software, processes, and files are now accessible from any location and any device. Also, when you need to quickly check a financial record or process a cheque, you don’t need to be concerned at all, as everything is saved on the cloud. No need to carry your bulky laptop with you on vacation anymore! You can easily track progress by logging into the cloud portal on your smartphone.
The beauty of this software is that it rarely makes minor computing errors. Accounting tools can quickly generate thousands of ledger entries with virtually guaranteed accuracy. In contrast, a human is often prone to fatigue-related errors arising from the monotonous nature of recording transactions.
Note that a competent accountant may still be necessary to review the work, extract insights and run custom iterations of the data for specific business needs.
Consider Peter and John are business partners who want to simplify and organize their spending to increase efficiency. To accomplish this, they issue multiple cards for business expenses. This makes it simple for them to keep track of their spending.
Peter oversees the marketing budget and frequently uses the company credit card to pay for online advertisements. It is important to him to be able to track his spending precisely, and he was aware that issuing a different card for each campaign would make this process simple.
John is in charge of accounting and keeps meticulous records. He values the ease with which he can reconcile the company’s financial records, thanks to having multiple cards for each business expense.
You can create as many cards for your business spending needs as you deem fit or necessary through Tirnu to cover all of your business expenses. Keeping track of your spending is made simple by the ability to customize each card’s name and description.
Consider that you operate a subscription-based business and you need to monitor payments. Each cost center will have a distinct corporate card, making it easier to track which payments have been made where, and when. The reconciliation procedure is made easier by the ability to track outgoing payments.
Check out these more typical business instances to see how individual card issuance could assist with reconciliation:
Virtual cards can be used to make online payments collectively.
This covers costs for spends on marketing materials, office supplies, software, and hardware. Using a virtual card can also avoid the headache and wait time associated with employee reimbursement.
Individual cards are an excellent tool for those who need to manage several subscriptions. You may easily keep track of, pause, or cancel subscription payments by issuing new cards for each new subscription. All subscriptions are accessible from a single dashboard, which will aid in automating the entire process.
There are many benefits to using smart corporate cards for business travel. You may pay for flights, trains, and lodging online using virtual business cards. Alternatively, you can use physical cards to make ATM withdrawals and make in-person purchases while traveling abroad. It will be simple to reconcile all of these transactions, regardless of spend location.
Tirnu’s accounting automation platform allows you to download all transactional data as a CSV or PDF file. These files contain all of the information required to expedite the reconciliation process, such as the date, time, amount, beneficiary details, and filters based on the card used. You can quickly export the spreadsheet for use with your preferred accounting program.
You can quickly create branded physical or digital cards and use them for any kind of expense. Other advantages of issuing a card through Tirnu include being in complete control of the process: