Reconciliation and technology – a match made in heaven
Almost everyone within an organisation who deals with accounting – from entrepreneurs to financial administrators and accountants – knows it well: reconciliation. That is, matching entries that belong together in a ledger account. It is a simple but extremely necessary process. Online shops, for example, handle dozens of orders a day. These orders all have to be packaged and provided with an invoice. When the order is delivered to the customer, they have two options: if the article is good, payment is made, or if the article is not satisfactory it is returned – with all the relevant administration. In order to keep these records in order it is important that the entries are processed correctly. And to do this, they have to be reconciled.
Is reconciliation suitable work for humans?
Many organisations match these entries manually in specially-made Excel documents or in specialised software. Keeping entries is of immense value to maintaining clear records. It must be possible to justify any amount in the records and therefore it is completely logical that organisations dedicate a lot of attention to this process. But if you ask me, manual reconciliation is a waste of time. A lot of people spend a lot of time matching payments to outstanding items. Not to mention the human error that can occur! Naturally it is not a process that can be 100% automated, but I am sure that 80% of payments can be matched using software.
For instance, I recently visited the Erasmus book store in Amsterdam, where they mainly carried out reconciliation manually. Since there was a shortage of staff, the organisation had got three months behind with their records. I was sure that this could be improved, and once they implemented MatchMaker the months of arrears were cleared up within two weeks by one FTE.
A match made in heaven
Intelligent software such as MatchMaker can set rules that ensure that payments received are automatically reconciled and processed in financial records. Not just by invoice number, but even by postcode and customer name. This saves time, and staff can then use this time to focus on the exceptions. The other 10% that cannot be automatically matched owing to a difference in the invoice and the actual payment is then matched manually within MatchMaker. There is still an advantage with MatchMaker in that it gives suggestions for potential matches, which also saves time. Less time, lower costs, fewer human errors and higher staff productivity: if you ask me, technology and reconciliation is a real match made in heaven.
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“Technologie en order to cash oplossingen is match made in heaven”