Brexit: Growth In Uncertainty
On 23rd June, the United Kingdom voted to leave the European Union. Irrespective of your thoughts on the sagacity or otherwise of this decision, it is now clear that businesses across the country, and across the continent, are in for a rocky few months as the economy adjusts and the rules for the UK trading with other economies around the world are worked out.
Economic uncertainty breeds and feeds two things – caution and risk. Already we are hearing stories of companies pulling away from investment, or even letting staff go. And, in troubled times, the temptation for staff to stick their hands in the till (real or virtual) is never greater.
This is a time when automated reconciliation systems come into their own. Not only can these systems drive efficiencies, by carrying out mundane tasks with ruthless efficiency, but they can also ensure that adequate controls are in place. A good reconciliation system makes it as difficult as possible for fraud to go undetected, and maintains a strong audit trail so it’s absolutely clear who has done what and when. Interfacing directly with source databases also knocks out one route for manipulating data. They are a vital tool for recognising, monitoring and minimising risk.
"Economic uncertainty breeds and feeds two things – caution and risk."
Far from being an unnecessary or unwanted expense, a reconciliation system should prove to be a shrewd investment – as long as it is adaptable to your organisation’s requirements and scalable to cope with growth in the future because, despite the current economic situation, successful organisations will continue to grow.
If that reconciliation system can also be configured to undertake other matching procedures, such as allocation of receipts or duplicate invoice detection, then so much the better. Indeed, duplicating invoice payments can also be a possible symptom of fraud.
Implementing a reconciliation system can free your staff to do the tasks they ought to be doing, such as resolving exceptions. When time is tight, reconciliations can be the first thing to suffer – mainly because it can be a struggle to keep them under control, with the number of unreconciled items allowed to grow.
Our experience is that reconciliation often appears as an after-thought to accountancy or treasury systems, which often lack flexibility or functionality in this area. A reputable reconciliations specialist will not only quickly understand your business requirements, but also highlight other areas and processes that may also need attention. We would suggest that you look for software which can be moulded to your requirements and processes, rather than software which forces you to comply with their methods of working. While spreadsheets, like Microsoft Excel, and other development tools, such as Microsoft Access, may give the appearance of short-term wins, again our experience is that, once the developer has moved on, expertise is quickly lost, and these quickly become rigid and often problematic solutions.
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