You can not avoid an error rate of around 0.8% when manually reconciling accounts. Even with the most diligent team.
Because it is only human to make small errors in any task. Think about your reconciliation process for a moment: details from one source have to be read by eye, remembered by the brain and keyed into Excel (or written down on paper). Then you need to check if the number was correct by checking with either the memory or with the source. Then repeat over and over again. It is here that the error rate appears.
Because of our cognitive fatigue it is almost impossible to get below a 0.8% error margin. So no matter what your method, you will not be able to avoid this error rate if the financial reconciliation is done manually – even with the most diligent team.
So far a company with some 20,000 entries in your accounts and bank statements to be reconciled, you will have to expect at least 160 mistakes. For a company with 40,0000 entries, you can expect at least 320 mistakes – mistakes that, if found, take several minutes to correct, if not hours.
The knock-on effects of these errors can range from difficulties in your financial reconciliation and even more tedious manual check ups to non-compliance fines of potentially hundreds of thousands of pounds. That is time and money wasted!
When using automatic reconciliation software this error rate is reduced to less than 1, regardless of how many thousands of items you reconcile. Not ‘1%’ – just 1.
Our software automatically matches almost all of your transaction data in the space of a few hours. The remaining unmatched entries are then displayed with potential match suggestions. For example, a single missing digit from an order number will be automatically spotted and the system will suggest the closest matches for you to choose from. The Adra Match system will learn from these mismatched items so it can fully automate them next time.
Having the confidence in your data and the added time to pause, think, analyse and make sense of the numbers, means you can add deeper insights to your reports and help your company to grow more profitably. A focused follow-up of budgets is an often-neglected task within financial departments, often due to time constraints. The extra time and accuracy afforded through automatic reconciliation allows you to better monitor the outcome of your budget, discover what worked and what needs changing, and plan more effectively for the next period.
Here is what some of our customers have said:
“We can now match 75,000 transactions in just 6.5 minutes, which is totally amazing!”
Financial Controller, Pan-European Telecom Company
“Using automation software, we could reconcile nearly two years of transactions in less than one hour.”
Accountant Vidar Tysvaer, Wickborg Rein Law
To find out more about automatic account reconciliation and what it could mean for your department in accuracy, download our free ebook today. Or, if you would like to see the software in action, why not book yourself onto our personal online demonstrations?