Adra can help you with automatic matching in several areas of bank reconciliation, such as traditional bank reconciliation and reconciliation of foreign currency accounts, direct payments, cash, card terminals (Visa, MasterCard, Eurocard), bank giro transfer. Automatic reconciliation simplifies your work processes, making them both faster and more accurate.

Automatic reconciliation of bank accounts

  • A fully automatic reconciliation process, at any time during an accounting period
  • Personnel independent – delegated responsibility
  • Final account specifications
  • All reconciliation history recorded
  • A uniform approach irrespective of number of companies, banks, business and accounts


Technology replaces manual work

Adra ACCOUNTS replaces the manual steps in the reconciliation process with technology. Thanks to technology, a consistent, effective reconciliation process for all accounts to be reconciled is also created.

The system keeps track of what has been reconciled and which items are open, regardless of when reconciliation is performed. Reconciliation can be performed by anyone at any time during the account period – and not only in connection with monthly, quarterly and annual reports, as time is often short.


Bank reconciliation – a company’s most important reconciliation process

Bank reconciliation is a company’s most important reconciliation process. It can differ, depending on activity. A lot of finance professionals continue to reconcile their bank accounts manually, printing out statements and going through all entries with pencil and pocket calculator to check which are still open. Others use Excel as a tool, eliminating items that match through summaries and macros.

But here’s the downside. The efficiency and accuracy of manual reconciliation depend entirely on the person performing it. When reconciliation is complete, all balances in the ledger and bank – plus any differences – have to be reported. This is often done outside the accounts system in an external system’s spreadsheets, with reconciliation results then transferred manually into the accounts.

Manual procedure:

  • Personnel-dependent
  • Inefficient and time-consuming
  • No history or opportunity to look back
  • Many manual steps make the process unsafe
  • All steps must be implemented for all accounts and by all personnel involved 



Invoice flow – matching many to one

Different businesses have different types of flows in their bank accounts. Flow characteristics are determined by business and customer characteristics. The different ways customers pay also generate various types of reconciliations. Here are some common types of bank flows.




Cash

Cash often gives rise to very time-consuming reconciliation work, because there are so many transactions. Many items from multiple cost centers hit your bank statement every day. The daily takings system reports to the accounts system each day, but in many cases 2-14 days can pass before the money is actually deposited into the bank. This makes it particularly difficult to keep track of which cost centers and which day’s sales money has been received.

Another way to handle reconciliation is to open one bank account per cost center, thus facilitating the management of transactions. But this is also time-consuming and expensive, because the numerous accounts in the chart of accounts complicate the administrative work. Reconciliation is still just as extensive, but now it’s also spread over several bank accounts. There are often several people involved in the reconciliation process, each doing it their own way.

Adra gives you:

  • Automatic pairing of matching transactions
  • Automatic control of the funds received at the bank per cost center
  • Personnel-independent – delegated responsibility
  • Completed reports for the monthly account
  • Control of input, output and differences for each month

Debit and credit cards

Like daily receipts, card terminals create time-consuming reconciliation work because of the sheer volume of transactions. Once again, there are lots of items from multiple cost center accounts every day. The cards used at the point of sale can be divided into two different categories: common debit cards – such as Visa, MasterCard and Eurocard – and credit cards with external redeemers – such as American Express and Diners Club.

Adra gives you:

  • Reconciliation at detailed level without recording all credit card transactions
  • Card fee per cost center directly from the system
  • Control per cost center of which card transactions have not entered the bank
  • Personnel-independent – delegated responsibility
  • Completed reports for the monthly account
  • Control of input, output and differences for each month

Debit cards

Daily sales that take place via common debit cards will be credited to your bank account a few days after the outlet closes its daily trading on the terminal. The sum comes in as the gross amount and the redeemer’s charges are billed retrospectively. Reconciliation is relatively simple to implement, but is complicated by the large volume of transaction.

Credit cards

Credit card sales show on an account statement as a single item: a lump sum for all registered purchases, minus deducted fees. It isn’t possible to see what’s being paid for from the bank account statement alone. That’s why, for accounting purposes, payments from external redeemers almost always end up in the settlement account. The settlement account is debited manually each day, based on information from the bank giro credit (BGC), either via the BgMax file or paper statements.


Currency accounts

The currency account is usually managed in the same way as an ordinary bank account. The difference is that the amounts in the accounting system are booked in the accounting currency and not in the actual one. A bank account statement therefore shows all amounts in Euros, while the accounts show them in USD. You either need an accounting system which can convert the Euro amount to USD during bookkeeping using a flat monthly rate or daily rate. Alternatively, the USD amount is calculated when doing the bookkeeping.

Adra gives you:

  • Automatic reconciliation of currency amount
  • Balance in currency amount, accounting amount and at the closing rate
  • Completed reports for the monthly account
  • Control of input, output and differences for each month

Most financial software has a currency field in which the original amount is entered, and when reconciliation is performed it uses this amount. This is calculated on either the fixed monthly rate or on the currency field in the accounting system. In this way, differences – such as a currency difference – don’t have to be written off without being completely sure what the difference entails. It also makes it easy to get the actual value of the accounting currency at the monthly accounting rate and so indicate how much liquidity has to be written up or down.


Direct payments

All customers have to make direct payments through their own bank. As beneficiary, you have to open an account for each bank, giving rise to many accounts in different banks. Any direct payment is a transaction on your statement with a unique ID. Direct payments can cause the accounts department to be flooded with multi-page statements from a variety of banks. The reconciliation itself is relatively simple, but very transaction-intensive.