Rockstars and Reconciliation: All Right Now
Paul Rodgers is hardly a household name, but at a guess, I would think most people will know his songs even I they do not know him. I mention this in passing as other than bank reconciliation, he has probably been the only other constant in my life over the past 45 years!
Little did I know that as a 19-year-old trainee accountant the daily monotony of doing the bank reconciliation would stand me in good stead for my accounting career and my subsequent one in the computer industry.
♫Can’t Get Enough♫
I am sure that I complained about the tedium and the wasted hours caused by my transposition errors due to the fact that it was all on paper… or hard-copy in today’s vernacular! Compared with today, bank reconciliation was a pretty simple affair. If memory serves, we only had a few transactions types… standing orders, direct debits, cheques and occasionally someone paid cash!
I vaguely recall designing a spreadsheet to do it… using Supercalc V! My boss would not have it. He was even more “old-school” than I and as I had to key the data by hand, he suggested that I might as well do it using pen and paper!
Fast forward to the internet age and how things have changed. On line access to bank accounts, downloaded bank statements, credit cards, debit cards, bank transfer, real-time bank transfers, a plethora of on line payment services that process electronic payments through hundreds of payment service providers than can connect to multiple acquiring banks, card, and payment networks. It can be so complicated.
♫Laying Down the Law♫
The one thing that has not changed is the need to understand why reconciliation is so critical. It is the crucial process for recording and verifying that the transactions on the bank statement are matched with the amounts from the company’s general ledger. A strong reconciliation process is the foundation for any companies accurate financial reporting and control over cash providing clear and precise information that supports the ability to make critical decisions. Quicker and improved reconciliation, may also support companies to improve their working capital.
When it comes to matching transactions and balances as part of any account reconciliation process; automation is best. Groupit can manage any form of reconciliation, including Bank Reconciliation and Payment Service Provider Reconciliation - saving valuable time and preventing errors.Explore solution
However critical it can be, performing reconciliations manually can be time-consuming, laborious, and costly – but it is an indispensable process that underpins the financial well-being of a company.
I learnt this lesson well at 19 and those truths are still just as true today. What I did not realise then was that my career would eventually centre on reconciliation and with the development in computing and software systems coupled with the ease in which data is interchanged, bank reconciliation is now made simpler, quicker, easier and accurate. Groupit, the software developed by Aurum Solutions, is one such system. It revolutioneses the bank reconciliation process, and pailes in comparison to my crudely designed spreadsheet.
As for Paul Rodgers… the big hit was with the band Free called “All Right Now” … which is also true of computerised bank reconciliation!