The hidden costs of manual reconciliations

How BEST’s automated in-SAP modules can transform your business.

In the world of finance, reconciliations are a critical yet often underappreciated process. Many organisations still rely on manual reconciliations, viewing them as a necessary evil. However, this approach carries hidden costs that extend far beyond the immediate impact on the bottom line. Let’s explore these hidden costs and how BEST’s automated solutions address them.

Time: The silent productivity killer

Manual reconciliations consume vast amounts of time. Finance teams spend hours, sometimes days, poring over spreadsheets, matching transactions, and investigating discrepancies. This time could be better spent on strategic activities that drive business growth.

BEST’s automated reconciliation modules dramatically reduce this time investment. With statement matching rates exceeding 95%, finance teams can focus on exception handling and value-added tasks. This shift from mundane data entry to strategic financial analysis can significantly impact an organisation’s bottom line and competitive edge.

Errors: The ripple effect of inaccuracies

Human errors in manual reconciliations are inevitable. A misplaced decimal or transposed number can lead to significant discrepancies. These errors can cascade through financial reports, leading to flawed decision-making and potential compliance issues.

BEST’s intelligent automation minimises these errors. By leveraging SAP’s robust data infrastructure and applying advanced matching algorithms, BEST ensures accuracy and consistency across all reconciliations. This not only improves the reliability of financial data but also enhances the credibility of the finance team within the organisation.

Compliance risk: The high stakes of inadequate controls

In today’s regulatory environment, the stakes for non-compliance are higher than ever. Manual reconciliations often lack the robust audit trails and controls necessary to meet stringent compliance requirements. This can leave organisations vulnerable to regulatory penalties and reputational damage.

BEST addresses this challenge head-on. Its SAP-certified modules provide comprehensive audit trails, real-time visibility, and strong controls, ensuring organisations can demonstrate compliance with confidence during audits. The ability to quickly produce accurate, well-documented reconciliations can significantly reduce audit time and costs.

Scalability: The growth constraint

As businesses grow, the volume of transactions increases, making manual reconciliations increasingly untenable. This can constrain growth or lead to costly staffing increases. Organisations find themselves in a catch-22: they need to grow to remain competitive, but their manual processes can’t keep up with the increased workload.

BEST’s scalable solutions grow with your business. Whether you’re reconciling hundreds or millions of transactions, BEST’s automated processes ensure efficiency and accuracy. This scalability allows organisations to expand their operations without a proportional increase in reconciliation resources.

Cash flow management: The opportunity cost

Inefficient reconciliations can lead to cash flow inaccuracies. This can result in missed investment opportunities or unnecessary borrowing, both of which impact the bottom line. Poor cash flow management can also strain relationships with vendors and impact an organisation’s credit rating.

BEST’s real-time visibility into financial positions enables more accurate cash flow forecasting and management. This empowers organisations to optimise their cash utilisation and financial strategies. With a clear picture of their financial position, businesses can make informed decisions about investments, debt management, and growth strategies.

Employee satisfaction: The overlooked factor

Repetitive, manual reconciliations can lead to employee burnout and turnover. This not only impacts productivity but also incurs additional recruitment and training costs. Moreover, it can be challenging to attract top talent to roles that are perceived as mundane and lacking in strategic importance.

By automating routine tasks, BEST allows finance professionals to focus on more engaging, strategic work. This can improve job satisfaction and retention, creating a more dynamic and motivated finance team. Finance professionals can transition from data processors to strategic advisors, adding more value to the organisation and finding greater fulfilment in their roles.

How BEST’s automated in-SAP modules transform your business

BEST’s suite of SAP-certified modules addresses these hidden costs head-on. By automating vendor reconciliations, balance sheet reconciliations, open item clearing, and customer clearing, BEST transforms the reconciliation process from a burden into a strategic advantage.

Vendor recons module: Achieve 95%+ matching rates, reduce discrepancies, and provide complete visibility into payables. This not only improves supplier relationships but also enables better cash flow management and negotiation of payment terms.

Balance sheet recons module: Automate for continuous compliance, constantly monitoring and reconciling balance sheets to identify mismatches. This ongoing process ensures that financial statements are always audit-ready, reducing year-end stress and improving the accuracy of interim reporting.

Open item clearing module: Streamline period-end closures with efficient bulk clearing across multiple companies and account types. This acceleration of the closing process allows finance teams to provide timely insights to management and external stakeholders.

Customer clearing module: Enhance order-to-cash efficiency through automated remittance matching to open receivables. This improves Days Sales Outstanding (DSO) metrics and ensures regulatory compliance through robust validation and exception handling.

The power of integration

While each of BEST’s modules offers significant benefits, their true power lies in how they integrate directly within your existing SAP infrastructure. By implementing BEST’s in-SAP solutions, organisations create a seamless, end-to-end reconciliation process that addresses key aspects of financial close and reporting.

This integrated approach improves efficiency and accuracy and provides a holistic view of the organisation’s financial position. Finance leaders can easily drill down from high-level reports to transaction-level details, enabling faster and more informed decision-making.

From surviving to thriving

The hidden costs of manual reconciliations are significant and far-reaching. By implementing BEST’s automated in-SAP solutions, organisations can not only reduce these costs but also unlock new efficiencies and strategic opportunities. In today’s competitive business landscape, this can make the difference between merely surviving and truly thriving.

BEST empowers finance teams to move beyond the role of data processors to become strategic partners in the business. By freeing up time and resources, improving accuracy, ensuring compliance, and providing real-time insights, BEST enables finance professionals to drive growth and innovation across the organisation.

Ready to transform your reconciliation processes and unlock your finance team’s full potential? Discover how BEST can revolutionise your financial operations. Book a demo today at bestsapcbi.com/book-demo and take the first step towards financial excellence.