Despite all the technological advances over the past decade or two, when it comes to account reconciliation, many financial teams still find themselves mired in manual processes, dealing with data silos, and managing the sheer volume and complexity of transactions. Then there’s the inevitable delays in receiving data, challenges of maintaining regulatory compliance, and the constant pressure to ensure data accuracy.
Modern account reconciliation - supported by cloud ERP solutions like NetSuite - completely upend these processes, in the best possible way. Almost overnight, financial teams gain access to real-time data integration, automated workflows, and advanced analytics that completely shift the focus of their jobs from tedious, error-prone manual tasks to strategic financial analysis and decision-making.
Speak to any financial leader who has transitioned to NetSuite, and they will rave about the time savings when it comes to account reconciliation. Or ask them to move back to the way they did things pre-NetSuite, and you'll likely get a resounding "never again." A big part of this advocacy stems from the transformation of the account reconciliation process, from long and tedious to streamlined and automated.
In this blog, we take a look at NetSuite’s account reconciliation features. We compare the way things are done without a solution like NetSuite in place, and how they look with NetSuite working behind the scenes.
Data collection with NetSuite Account Reconciliation
Without NetSuite:
Finance must manually collect and download data from various financial sources, such as bank statements, credit card statements, and accounting records. This data must then be manually entered or uploaded into spreadsheets or basic accounting systems.
With NetSuite:
NetSuite automates data collection by integrating with various financial sources. General ledger account reconciliations, including bank reconciliations, credit card matching, and intercompany transactions, are all brought together automatically within the system, eliminating the need for spreadsheets and manual data entry.
Transaction matching with NetSuite Account Reconciliation
Without NetSuite:
This process is largely labour-intensive, requiring users to manually match transactions from many different sources. It’s time-consuming and prone to errors.
With NetSuite:
NetSuite’s auto-match engine matches millions of transactions in minutes using advanced algorithms. An intelligent auto-match feature speeds up the transaction-matching process by suggesting matches that you can accept or discard. With NetSuite handling most transactions automatically and flagging only exceptions for manual review, the workload is significantly reduced. You can also create flexible matching rules for individual transactions or groups of transactions, such as one-to-one, many-to-one, and many-to-many matches.
Exception management with NetSuite Account Reconciliation
Without NetSuite:
Manually reviewing data to identify mismatches or discrepancies is time-consuming and may result in overlooked issues. Investigating and resolving discrepancies often requires extensive back-and-forth between departments.
With NetSuite:
NetSuite automatically identifies discrepancies with real-time alerts and detailed reports highlighting issues. The investigation process is streamlined with tools that provide quick access to transaction histories and detailed data insights, allowing for efficient resolution of discrepancies.
Adjustments with NetSuite Account Reconciliation
Without NetSuite:
Adjustments must be manually recorded in spreadsheets or basic accounting software, increasing the risk of errors. Approval processes are often slow and lack transparency.
With NetSuite:
NetSuite automatically records adjustments within the system, ensuring accuracy and reducing manual effort. Automated approval workflows provide transparency and speed up the process, ensuring timely and accurate adjustments.
Reconciliation reporting with NetSuite Account Reconciliation
Without NetSuite:
Manually compiling reconciliation reports takes time and may lead to incomplete or inaccurate reporting. Manual review processes are prone to human error and can be inefficient.
With NetSuite:
NetSuite automatically generates detailed reconciliation reports with real-time data, ensuring accuracy and completeness. Reports can be reviewed efficiently using NetSuite’s intuitive dashboards and customisable report formats, providing clear insights into reconciliation statuses.
Sign-off with NetSuite Account Reconciliation
Without NetSuite:
Manual sign-off processes can be slow and lack proper tracking, making it difficult to verify approvals and maintain compliance.
With NetSuite:
NetSuite offers automated sign-off workflows that ensure timely and tracked approvals. Comprehensive tracking of all sign-offs within the system enhances compliance and accountability.
Documentation and archiving with NetSuite Account Reconciliation
Without NetSuite
Documentation is manually maintained, which can be disorganized and difficult to retrieve. Manual archiving processes may lead to lost or inaccessible records.
With NetSuite
NetSuite automatically maintains and organises documentation within the system, ensuring easy access and retrieval. Secure, automated archiving processes ensure records are stored correctly and are easily accessible for future reference and compliance needs.
Continuous monitoring with NetSuite Account Reconciliation
Without NetSuite:
Periodic, manual reviews can miss emerging issues or trends, and scheduled reconciliations are often inconsistent and delayed.
With NetSuite:
NetSuite provides continuous, real-time monitoring with automated alerts for emerging issues. Reconciliations are automatically scheduled, ensuring consistency and timeliness, and allowing for proactive management of financial data.
Compliance and audit preparation with NetSuite Account Reconciliation
Without NetSuite:
Ensuring compliance with regulatory requirements and internal controls through manual checks is laborious and prone to oversight. Preparing documentation and reports for audits manually can be stressful and error prone.
With NetSuite:
NetSuite automates compliance checks to ensure adherence to regulatory standards. Audit preparation is streamlined with comprehensive, real-time audit trails and automated report generation, making the process efficient and reducing the risk of errors.
There is little doubt that NetSuite’s capabilities in account reconciliation significantly enhance the efficiency, accuracy, and effectiveness of financial processes.
Read the datasheet to learn more about NetSuite Account Reconciliation, and how it can improve processes for your finance team.
