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Automatically reconcile your bank account statement with your ERP
Sync payments from any and all company bank accounts with your ERP, without implementing time-consuming, complicated H2H banking integrations for each bank account.
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Safe and secure. Compliant with RBI guidelines & IndAS
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Safe and secure. Compliant with RBI guidelines & IndAS
Trusted by more than 3000 companies
The Problem Today
Finance teams spend 100s of hours monthly reconciling bank statements
In what is a completely manual process, UTR numbers are matched against invoices in the ERP. This is time consuming and error prone. Some banks offer H2H integrations, but these are complex and bank account specific.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
The Problem Today
AP teams spend 100s of hours booking invoices
This is not only a waste of time and productivity, but many a times the invoice booking process has compliance loopholes, uses outdated technology and there is no central storage system for audit readiness and future reference.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
Error prone process
AP teams go line by line - one transaction at a time to reconcile with invoices in the ERP. This process is error prone.
Complex H2H Integrations
Some banks have H2H integrations. They’re complex, time consuming to set up. Further, each account needs its own integration.
Real time data unavailable
The more the number of transactions, the longer it takes to reconcile. Real time updation is impossible.
Presenting custom Bank and ERP reconciliation built for large Indian enterprises
Works With All Banks
Stop juggling funds from account to account to make a single vendor payment
Transfer funds from any bank account to the clearing account, and pay vendors without a hassle. Works with any bank account right out of the box.
Instant Reconciliation
Lightning quick bank reconciliation with your ERP
Made a payment? Instantly and automatically reconcile every detail with your ERP, without needing to manually upload any payment files.
H2H Integrations
Making host to host banking integrations redundant
No need for host to host banking integrations. They’re time consuming, complicated to implement and maintain. Plus you need to set up one for each of your accounts separately.
Supports all major ERPs
Whatever ERP you use, CashFlo offers plug and play integrations and powerful APIs
Instantly sync every single payment with SAP, SAP B1, Ohana, Oracle, MS Dynamic and many more ERPs. Set up more complex integrations with custom APIs.
Explore our entire suite of Corporate Finance Automation Products
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Unlock the potential of your finance team & boost productivity 10x. Let us show you how.
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What Is Bank Reconciliation?
Bank reconciliation is the process of comparing and reconciling bank statements with a company's financial records to ensure accuracy. Reconciling bank statements helps identify discrepancies between the bank and account records. A bank reconciliation statement is created to show any differences and adjustments made. This process is vital for maintaining accurate financial records. Bank reconciliation can be done manually or through online reconciliation methods. Proper financial reconciliation helps businesses maintain accurate records, ensuring the integrity of their financial statements.
Process flow for bank reconciliation
The bank reconciliation process begins with obtaining your bank statement and comparing it to your records. Start by reconciling bank statements with your internal accounts to identify discrepancies. This involves matching transactions and ensuring the bank reconciliation statement aligns with your financial records. Next, address any differences, such as outstanding checks or bank fees. For online reconciliation, update records to reflect these differences. Prepare a reconciliation statement to summarize the process and ensure the bank account reconciliation is accurate. This process helps ensure accurate financial reconciliation and effective management of cash flow and transactions.
Benefits of Bank Reconciliation
Ensures Accurate Payment Tracking
Regular bank reconciliation helps confirm that all customer payments have been accurately recorded and processed, ensuring that your bank statement matches your internal records. This is crucial for maintaining accurate financial records and managing cash flow.
Simplifies Financial Management
By reconciling bank statements and preparing reconciliation statements, you streamline your accounting processes. This reduces the complexity of managing financial transactions and helps maintain an organized and up-to-date account balance.
Detects and Corrects Errors
Bank reconciliation is effective in catching errors or discrepancies between your records and the bank statement. This includes identifying issues with cash receipts or transactions, allowing for timely corrections and more accurate financial reporting.
Challenges with Bank Reconciliation
1. Uncleared Checks: When reconciling bank statements, uncleared checks that have been issued but not yet processed by the bank can cause discrepancies, complicating the bank and account reconciliation.
2. Voided Checks: Voided checks that have already cleared the bank may not be accurately reflected in your records, making it challenging to reconcile accounts and prepare a correct bank reconciliation statement.
3. Returned Deposits: Deposits that are returned or rejected by the bank can affect the accuracy of your account balances. This issue requires careful reconciliation to ensure your bank reconciliation statement matches your internal records.
4. Bank Service Charges: Bank service fees that are not recorded in your accounts can create differences between the bank statement and your records, necessitating detailed financial reconciliation.
5. Interest Income: Interest earned but not yet recorded in your internal accounts can impact the bank reconciliation process, requiring adjustments to ensure accurate reconciliation of your balance sheet.
2. Voided Checks: Voided checks that have already cleared the bank may not be accurately reflected in your records, making it challenging to reconcile accounts and prepare a correct bank reconciliation statement.
3. Returned Deposits: Deposits that are returned or rejected by the bank can affect the accuracy of your account balances. This issue requires careful reconciliation to ensure your bank reconciliation statement matches your internal records.
4. Bank Service Charges: Bank service fees that are not recorded in your accounts can create differences between the bank statement and your records, necessitating detailed financial reconciliation.
5. Interest Income: Interest earned but not yet recorded in your internal accounts can impact the bank reconciliation process, requiring adjustments to ensure accurate reconciliation of your balance sheet.
How to Perform Bank Reconciliations: Step-by-Step
1. Compare Balances: Match your bank account balance with your cash balance in the books to start the bank reconciliation process.
2. Review the Bank Statement: Examine the bank statement for discrepancies and transactions that need to be reconciled with your records.
3. Check the Cash Book: Ensure your cash book entries align with the bank statement, identifying any missing or incorrect entries.
4. Adjust Bank Balance: Update the bank account balance to correct any errors or pending transactions.
5. Update Your Books: Modify your records to match the adjusted bank balance, ensuring accuracy.
6. Record Reconciliation: Document the process by preparing a reconciliation statement to track changes and maintain accurate financial records.
2. Review the Bank Statement: Examine the bank statement for discrepancies and transactions that need to be reconciled with your records.
3. Check the Cash Book: Ensure your cash book entries align with the bank statement, identifying any missing or incorrect entries.
4. Adjust Bank Balance: Update the bank account balance to correct any errors or pending transactions.
5. Update Your Books: Modify your records to match the adjusted bank balance, ensuring accuracy.
6. Record Reconciliation: Document the process by preparing a reconciliation statement to track changes and maintain accurate financial records.
Manage Bank Reconciliations with Cashflo
Streamline your bank reconciliations effortlessly with Cashflo. Our platform simplifies reconciling bank statements by automating data matching and error detection. Key benefits of using Cashflo include real-time online reconciliation, seamless integration with your existing accounting systems, and intuitive dashboards that make preparing reconciliation statements a breeze. Cashflo ensures accuracy and efficiency in your financial reconciliation, so you can focus on growing your business.
Frequently Asked Questions
Why is bank reconciliation important?
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How often should bank reconciliations be performed?
What are common issues found during bank reconciliation?
How can I automate bank reconciliation?
What is a bank reconciliation statement?
What steps are involved in the bank reconciliation process?
Can bank reconciliations help with financial planning?
How do I handle discrepancies found during reconciliation?
What tools are available for bank reconciliation?
How can I improve the efficiency of my bank reconciliation process?
Power your corporate finance team with CashFlo
Speak to an expert from our team to see how CashFlo can help you automate and elevate your corporate finance function
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