Nolan Business Solutions

The ultimate guide to automating your cash reconciliation process

Cash reconciliation is an important part of the accounting process, and it is integral to ensure proper financial control and compliance.

However, reconciliation is often performed manually, eating up precious time and resources, and risking human-error and inaccuracies.

In this guide, we explore the benefits of automating your cash reconciliation process, and how you can do so.

 

What is a cash reconciliation process?

Cash reconciliation is the business process that verifies the cash balance at the close of business. The verification can also take place before shift changes, when a different person takes over a cash register.

Cash reconciliation is different to bank reconciliation, and it’s important to understand that the two terms shouldn’t be used interchangeably.

Bank reconciliations compare bank account statements, whilst a cash reconciliation is used the measure the cash balance of your register.

Benefits of automating your cash reconciliation process

Businesses that automate their cash reconciliation process can enjoy faster month-end closes, greater accuracy and improved transparency.

Having an official cash reconciliation process will have many benefits for your business, including:

  • Alerts to any fraudulent activity
    Whether your cash is being stolen by a stranger or, unfortunately, one your employees, a cash reconciliation process will advise whether any money is missing from your cash register.
  • Accounting error notifications
    A proper cash reconciliation process will prevent cash balance error and keep your accounting records as accurate as possible. Performing cash reconciliation as regularly as possible will enhance your chances of keeping your records correct and up to date.
  • Have confidence in your accounts
    Having an automated cash reconciliation process brings a confidence that your accountants are correct and accurate. You can have the assurance that your businesses financial decisions will be based on accurate financial information.
  • Save time
    With automatic cash reconciliation, the process is carried out quickly. All you need to do is check that totals match up with your balance sheet, cashflow, capital and income statements - much faster than manually checking spreadsheets!
  • Improved cash forecasting
    Knowing your accounting records are accurate will give you the ability to properly cash forecast.

    Making important business decisions based on an incorrect cash balance can cause major disruptions and may have consequences for your business.
 
 

Automating your cash reconciliation process

Checking that finances are accurate and match up is a key responsibility of the finance team. Getting this right means that your organization can be assured that its financial accounts are correct.

But that doesn’t mean the finance team has to do this all manually.

To prevent any errors, companies will help their finance departments by putting robust processes in place, and automate the cash reconciliation process.

 

Automating your processes with Nolan Business Solutions

Reconciling your organization’s finances can be complex and time-consuming when done manually. There’s a risk of human error when keying in important figures, as well as the risk of incorrect reporting.

To ensure a fast, accurate and cost-effective close, consider using reconciliation solutions that integrate with your accounting system.

At Nolan Business Solutions, we specialize in providing tailored software solutions for businesses looking to grow.

If you are looking to automate your processes and improve business operations, we can help. Contact our team of experts today - we’d love to support your business.

 

 

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