Automating the processes that manage your reconciliation accounts is becoming increasingly popular today. Manual account reconciliation processes involve many team members, spreadsheets, and a high likelihood of human error due to:
- Manual data entry
- Tight deadlines
- Limited headcount
- High-volume of accounts to reconcile
Organizations are realizing that manual reconciliation methods are taking up too many resources and incur high risk from a lack of visibility into the status of the financial close timeline and any potential errors that are made.
How can organizations work to solve this issue? This blog post will explore the key reasons to eliminate manual processes, and the ROI that can be achieved with account reconciliation automation for your organization.
Why Leading Organizations Apply Automation to Their Reconciliation Accounts
There are many accounting automation benefits that an organization can experience:
- Standardization of processes across the organization
- Increased visibility through dashboards and analytics reports
- Decreased risk of human error
- Time savings and clarification of team responsibilities
- Increased productivity from financial staff
Purpose-built automation, like that included in Cadency’s System of Accounting Intelligence™ by Trintech, helps prioritize accounts to see what can be automated, and what can’t. This allows for increased visibility across the reconciliation and close process via dashboards and notifications, instead of scanning spreadsheets that provide minimal updates. Your reconciliation and financial close process become more streamlined and transparent for all parties involved.
3 Automation Use Cases: Discover the Benefits of Automating Your Reconciliation Process
Automation Use Case #1: Secure Trust Bank
Secure Trust Bank faced an increase in the complexity of its reporting requirements because of an aggressive growth strategy. They were managing 700 accounts across a 41-tab Excel spreadsheet, which left no visibility into the status of the reconciliation and close process. Additionally, a lack of standardization across their reconciliation process increased the risk of errors and created workflow issues.
Secure Trust Bank selected Cadency® by Trintech because they needed a solution that could automate multiple processes, increase reconciliation accuracy and efficiency. They also wanted to focus on strategic initiatives rather than manual processes and wanted an experienced partner like Trintech that could help guide them through implementation.
Secure Trust Bank’s ROI with Cadency
- Decreased balance sheet accounts to be reconciled by over 40%
- Achieved improvements in quality, visibility, and accountability of reconciliation accounts
- Reconciliations consistently completed on time
- Reduced overall risk profile
To learn more about Secure Trust Bank’s journey, visit their case study.
Automation Use Case #2: Boston Scientific Corporation
Boston Scientific Corporation (BSC) experienced an increase in financial costs and a decrease in the F&A team’s capacity due to significant growth. Part of their growth strategy included several fast-paced acquisitions. Having to consolidate multiple ERPs without a clear strategy compromised their data integrity. They also launched a Global Business Services structure, as well as the utilization of a BPO. With all these events, there was a lack of standardization and visibility into their financial processes that raised their risk profile.
BSC chose Cadency because the solution increased BSC’s visibility and control, while eliminating manual work efforts to unlock the capacity of the finance team.
“We’ve created a roadmap to really emphasize and drive continuous improvement and optimize things like account maintenance. And the goal: clearly, being to work smarter, not harder. The partnership with Trintech really has been important in helping us figure out how to adjust our processes and approaches to better work in this virtual environment.” –Global Process Steward of Account-to-Report, Boston Scientific Corporation
BSC’s ROI with Cadency
- Standardized balance sheet reconciliation and JE with 29000+ accounts housed in Cadency, and more than 4400 of those auto-reconciled
- Increased staff productivity
- Time saved through onboarding new entities through their SAP ERP as part of the integration plan with Cadency
- Global communication and visibility between teams increased
- Ability to track multiple KPIs such as: Incomplete account reconciliations per policy, unassigned accounts, deactivated accounts with a balance, timeliness of account reconciliations, JEs and close tasks, the accuracy of account reconciliations and JEs
To learn more about Boston Scientific’s financial transformation journey, read their case study.
Automation Use Case #3: LKQ Corporation
LKQ had difficulty managing high-volume transactions, balance sheet reconciliations, and close management processes due to an aggressive growth strategy. A lack of standardization and visibility contributed to these difficulties, as processes were spread out amongst 25 manually maintained Excel sheets.
LKQ selected Cadency to standardize its balance sheet reconciliation and close processes. They were able to automate 90% of reconciliations, including their intercompany reconciliations, and gain real-time visibility into the tracking and reporting of reconciliations.
“Today, we are loading about 100,000+ records and auto-reconcile over 90% of those intercompany reconciliations, which has been a significant win for us.” -Accounting Senior II, Financial Systems Support, LKQ Corporation
LKQ’s ROI with Cadency
- Standardized high-volume transactions, balance sheet reconciliations and close tasks across all entities
- Reduced close process timeline by 2 business days
- Executed 100+ acquisitions without adding additional headcount
- Full confidence in timely and accurate information
- 90% auto-reconciliation provides the ability to quickly identify and resolve issues
- Intercompany nets to zero almost every month
- Provided transaction-level detail of variances
To learn more about LKQ’s journey, visit their case study.
Reconciling accounts is the foundation of the financial close. With automation, the ROI of increased transparency, efficiency and time savings not only strengthens your foundation, but can be seen across all other aspects of the financial close process.
Written by: Mikayla Jordan