Reconciliation is pivotal in ensuring the precision of a company's financial records. When done effectively, automated reconciliation becomes a cornerstone for saving time and resources, empowering businesses to make well-informed decisions.
Unfortunately, financial reconciliation takes up a lot of time for most businesses. 36% of companies lose at least one full work day per week on payment operations, and some have over four full-time equivalent (FTE) employees working with reconciliation.
Reconciliation is a cumbersome process for all types of businesses, especially for retailers with multiple locations, online and in-store payment channels, international presence, and legal entities.
To overcome these challenges, businesses can embrace automated solutions, contributing to a more streamlined and error-free financial reconciliation process.
In this blog post, you'll discover:
What is automated reconciliation?
Manual vs. automated reconciliation
Automated reconciliation with Adyen
What is automated reconciliation?
Automated reconciliation involves using software that streamlines the process rather than employees doing it manually.
Manual vs. automated reconciliation
Reconciliation is mandatory for all businesses and helps them understand their spending and finances.
The reality of manual reconciliation
Account reconciliation is often done manually by a person or team of people. This is usually a complex process involving:
Different payment methods and schemes
Finding past invoices and other documentation in different places
Different payment setups for online and in-store payments
Banks that process transactions in batches and are slower than businesses
Customer returns that add a new layer of complexity
These aspects make manual reconciliation time-consuming and resource-heavy, leading to an increased risk of human errors that result in wasted time and resources, fines and penalties, and higher operating expenses. Errors in reporting also result in businesses having less accurate insights into their finances. Businesses become at risk of making wrong decisions to limit their spending or invest their money.
Benefits of automated reconciliation
The best way to solve the challenges above is to automate reconciliation processes. By doing so, businesses can experience benefits such as:
Reduced risk of errors
Accurate reporting
Save time and resources
By automating the process businesses free up more time and resources to focus on what’s truly important for their business. To do this, they need financial reconciliation software that uses modern technology.
Automated reconciliation with Adyen
Many businesses are limited when it comes to automating reconciliation due to the complexities of outdated legacy infrastructure. Legacy providers often consist of disconnected systems for online and in-store operations. Automating the process is often not feasible as these providers rely on outdated technology, forcing businesses to resort to manual reconciliation.
At Adyen, we offer the modern technology you need to automate reconciliation. This includes:
Streamlined financial reconciliation processes, minimizing overhead and time investments.
Comprehensive reconciliation services are provided in one centralized location
Automation incorporated to minimize human errors
The impact? Businesses can reduce time spent on financial reconciliation and troubleshooting by taking a single platform approach to reconciliation. By consolidating multiple formats and reporting frequencies into a single report, businesses receive an easier reporting process and more timely and accurate financial reporting.
Learn more about how HUGO BOSS improved their reconciliation setup. Streamline operations and enhance the customer experience with a unified commerce platform. Get in touch.
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