The amount and complexity of work performed by the finance department grow with the company's size. Hence, companies use methods like accounts reconciliation to maintain the books to work efficiently and effectively.
Many finance departments consider accounts reconciliation process an excellent place to start and invest their time when looking to improve their Record to Report (R2R) process. This is because it serves as the foundation for the remainder of their work and helps them do everything quickly to keep things in order.
Invest in automation of account reconciliation
The accounts reconciliation process is incredibly chaotic and complex, and businesses that have not yet automated it faces a significant risk of misrepresenting the methods and its entire process. Using sheets and a manual workforce to manage the finance is not only slow but less efficient and inaccurate in many ways. An automated system can increase the accuracy of all financial statements while speeding up the process and reducing the risks associated with human processing.
Create a framework for automation
Automating any process can increase the speed of the work being completed. Still, there is no guarantee that the process is being implemented correctly without an initial framework for the standardisation of the process. Most e-commerce accounting services make a framework for automating the process to avoid any problems in the future.
Practice an approach that considers the risk too
For each account, establishing this practice necessitates a careful and balanced review of quantitative and qualitative criteria and their associated risks. These accounts can then be grouped and assigned a risk rating ranging from low to high.
Improve the framework over time
While the modifications may appear minor at first, fine-tuning processes over time will assist the Office of Finance in future-proof itself and be ready to respond to organisational changes and stakeholder expectations. This will also help your company in the future, where you won't have to change the process entirely because of the regular changes you have made in the past.
Conclusion
Many e-commerce accounting services are now using this to speed up their work and make sure that there is no error in the data they provide to their clients and other associated businesses. You can also apply the accounts reconciliation process in your business and make sure that you are paving a path for a better and more concise financial system within your company.