Improving Accuracy & Efficiency By Automating Statement Reconciliation Using RPA

In today's fast-paced business environment, automating statement reconciliation has become a necessity for many organizations. Manual reconciliation processes are not only inefficient but also prone to errors, leading to discrepancies in financial data and wasted resources. However, thanks to advancements in RPA solutions, businesses can now automate these tedious and repetitive processes with high accuracy. In this article, we will explore how businesses can improve accuracy, efficiency and save cost by automating statement reconciliation using RPA.

The Inefficiencies of Manual Statement Reconciliation

• Duplication in information: This often occurs due to system or human error, leading to inaccuracies in financial data.

• More than one transaction: When a single invoice consists of several transactions, it complicates the reconciliation process.

• Date/time differences: Differences in time zones, system clocks, and transaction timing can lead to discrepancies in the date and time of invoice generation.

• Human errors: Humans are prone to mistakes, such as misspellings or missing special characters, which can result in inaccuracies in the data.

• Date format discrepancies: Varying date formats across systems can cause confusion during the checking process.

These inefficiencies not only impede the efficiency of the reconciliation process but also increase the risk of errors and discrepancies in financial data.

Automating Statement Reconciliation using RPA

RPA solutions powered by artificial intelligence can help businesses automate and streamline the statement reconciliation process. Organizations can upload statements received in various formats, such as PDF, and Excel, onto a cloud-based statement processing system by using RPA. These statements are then automatically reconciled against data from the accounts payable ledger. RPA bots can pull data from multiple sources, including Excel spreadsheets, accounts payable and accounts receivable systems, purchase orders, and bank statements, in real-time, completing reconciliations and flagging discrepancies for investigation.

Here are some key benefits of statement reconciliation with RPA:

1. Improved Accuracy RPA can handle high-volume transactions and repetitive tasks, such as data entry, with high accuracy. Organizations can reduce human error, improve data integrity, and ensure the accuracy of financial statements through automating these tasks. RPA bots can match records with high precision, reducing costly errors and discrepancies.

2. Increased Efficiency Automating statement reconciliation using RPA significantly speeds up the reconciliation process. RPA bots can perform account reconciliations, trial balance calculations, and post adjustments for banks, customers, and vendor’s statements reconciliation with ERP data or any other database to the general ledger, all in a fraction of the time it would take a human. This allows organizations to complete the reconciliation process more quickly, improving efficiency and reducing bottlenecks.

3. Cost Savings Organizations can achieve significant cost savings by automating manpower-intensive and time-consuming tasks. RPA software can handle high-volume data entry, matching transactions and validation, invoice processing, and reconciliation, reducing the need for manual intervention. This not only saves time but also reduces the likelihood of errors, minimizing the costs associated with error correction and rework.

4. Enhanced Compliance RPA bots can automate manual controls and establish audit trails, ensuring compliance with regulatory requirements. Organizations can program RPA solutions to adhere to multi-jurisdictional accounting standards, update information in real time, and create an audit trail of actions. This simplifies the preparation for audits and reduces the manual effort required to gather documentation.

5. Business Continuity RPA provides business continuity by allowing organizations to operate during staff shortages, natural disasters, or business disruptions. RPA solutions can automate manual processes and data validation checks, improving the efficiency and reliability of financial operations. Additionally, RPA works across all platforms, including legacy systems, ensuring compatibility and accessibility.

Use Cases of Automating Statement Reconciliation with RPA

Automating statement reconciliation with RPA can benefit various departments within an organization. Here are some specific use cases:

1. Accounts Payable RPA can automate invoice/payment processing, record management, and matching transactions for the accounts payable team. Automating these tasks enables the accounts payable team to focus on resolving discrepancies flagged by the RPA system, leading to higher-value work and increased job satisfaction.

2. Accounts Receivable The bot software can streamline accounts receivable processes, including customer onboarding, invoice generation and distribution, customer credit monitoring, dispute monitoring, payment matching, and customer account updates. Automating these tasks improves accuracy, reduces manual effort, and enhances customer relations.

3. Customer Relations Accurate invoices, prompt payment, and quick resolution of discrepancies can improve customer relations and lead to more favorable credit terms and better vendor and supplier relationships. RPA can automate invoice processing, payment matching, and customer account updates, resulting in improved customer satisfaction and a positive cash flow.

4. Audit and Compliance RPA bots can automate manual controls, establish audit trails, and ensure compliance with audit and compliance requirements. By reconciling intercompany accounts, general ledgers, and providing an audit trail of actions, RPA strengthens governance, validates financial data, and simplifies the audit preparation process.

Conclusion

Automating statement reconciliation with RPA  offers significant benefits for organizations in terms of accuracy, efficiency, cost savings, compliance, and business continuity. Organizations can streamline the reconciliation process, reduce human error, and improve data integrity by leveraging RPA technology. Moreover, RPA frees up employees from mundane tasks, allowing them to focus on higher-value activities. If you are looking to improve your statement reconciliation process, consider implementing RPA and unlock the potential for increased productivity and cost savings in your organization.

To learn more about RPA solutions and how they can transform your business, reach out to our automation experts at ESS.

ESS, an RPA service provider can help organizations to design, develop, and implement RPA solutions tailored to their specific business needs. As an RPA service provider, ESS can guide organizations through the RPA journey and ensure that the solutions are properly implemented. It also provides ongoing maintenance and technical support for the automation processes to ensure their smooth functioning. So if you're ready to automate your statement reconciliation using RPA, Let ESS empower your organization to tap into automation's potential and propel your business to new heights. Visit our website at www.essindia.com or contact us at marketing@essindia.com to learn more. Let's work together to transform your business and stay ahead of the competition.