Do you feel constrained from carrying out your business as you would like because you have to get things done at the bank? If this sounds familiar, then do not waste any more of your valuable time. There is plenty of accounting software that can help you with the process of bank reconciliation.
What is bank reconciliation?
Let’s cut the jargon. Simply put, bank reconciliation means the process of matching the actual money in the bank with that of the financial status of your business. Keeping track of finances can be a tedious process for most business enthusiasts, but you can stay updated and take the necessary fiscal action thanks to cloud-based accounting software. But you do not need to be actually involved with the process as the accounting software will carry out the steps for you. If you want to carry out the process manually, it can take hours, and there is no doubt it is a labour-intensive process. With the help of technology, bank reconciliation can be directly matched with your accounting software. It is a process that is considered to be the gold standard and best practice.
What is the function of bank reconciliation software?
After the software has been installed and synched in with the correct information, it will start operating. There are various steps and issues that accounting software can deal with:
1. Bank feed
As a business, you must be carrying out many transactions a day. Manually entering all the information might be a daunting task, but you can avoid it. Accounting software uses a data aggregator to put your transactions in order. It erases the duplication which can happen with manual data entry. You will instantly have a clear reflection of all transactions along with all the required information.
2. Automated transaction update
More often than not, you may find some transactions to be confusing and recurring. But when using software for accounting, you will find your dealings categorized for easy understanding. It will give you an instant reference for any recurring expense enabling easy calculation of your funds. Cloud-based accounting software is equipped with filters that put your finances into convenient boxes.
3. Use of AI
Trusting technology is the simplest way to put your affairs in order. The intuitive cloud-based accounting software can act as your guide. It can help you take all the necessary payment-related steps.
4. Bulk deals
You may notice that certain types of transactions need to be carried out in bulk. You can efficiently resolve these payments with the help of accounting software and one single click. You will no longer be required to deal with such transactions individually. The software’s intelligence means it can determine bulk actions and combine them into a single operation. With the help of this feature, you will free up time to check on your finances or engage in business development.
5. Tax assessment
Tax filing is a task that is dreaded by many business owners. Wouldn’t you want your finances to be shipshape and ready for tax filing? The accounting software does that for you as well. Inadvertent errors can be viewed as fraud by the authorities, which could mean a costly tax bill. Accounting software can identify such mistakes, even duplications, which helps you with the tax assessment. You will also be able to maintain the balance sheet check to clarify the expected tax amount payable.
One dashboard will be enough to give you a macro look at all your finances. From importing all your bank feed to assessing tax requirements. You can even get insight into your cash flow, And with just a glance, you can grab all the information you need. Features like projections on cash flow can be an essential tool. Any mismatched accounts will also be reflected in the dashboard.
7. Exceptional cases
There can be exceptional cases where the offsetting of accounts might be necessary among business partners. If you wish to carry out such a process, it can seem like a tedious one. Accounting software can help carry out such transactions without any complications.
Bank reconciliation made easy with Financio
Our software allows you to see the transactions according to date, which is already pre-matched. You will also be prompted to resolve any unidentified transactions. Once satisfied, you can choose to click on the reconcile button.
With technology at your disposal, do not let bank reconciliation be an impediment to your creativity. Use your time wisely and do business better. Do away with any manual errors in data entry and automate the process, only a few clicks will get you sorted. For more information, feel free to get in touch with us.