LET’S GET STARTED
It’s natural that over time, your startup’s cash accounts are going to change - business is all about moving that money around, after all! However, just because you record these changes in your cash accounts doesn’t automatically mean that your bank is getting the message.
This is why the bank reconciliation process where your cash accounts and bank accounts are examined for differences, which are then resolved, is so important. As you can imagine, this can be a very complicated process! Thankfully, for the modern startup, there are plenty of ways to help smooth these accounting processes, through the magic of automated bank reconciliation and AI reconciliation.
Why Bank Reconciliation Is Important For Any Startup
The bank reconciliation process is a vital process for any startup, for two main reasons. Firstly, you want to always make sure you actually know how much cash you have in the bank! If you don’t perform regular bank reconciliations, it’s possible that problems can develop as you under or overestimate how much cash you actually have in your bank accounts.
There’s also the very serious issue of compliance. If your cash accounts don’t match with your bank accounts, it could count as a breach of compliance come tax time, leading to a lot of hassle and panic.
Because of this, it’s advisable to have a bank reconciliation at least every month. Ideally, you would have a constant bank reconciliation process, but doing this manually would be more of an accounting nightmare than most companies are capable of handling!
How Automation Benefits Your Accounting Team
While doing it manually may be impossible, your startup can still get the benefits of constantly updated accounting processes. This is through automated bank reconciliation. This process uses software to track any changes made, and automatically will perform the reconciliation process for you. This results in a reconciliation process that occurs in close to “real-time.”
This provides a variety of immediate benefits for your startup. Firstly it will save you money - you don’t need to keep spending time and resources performing reconciliations. You also can be assured that you’re not accidentally either assuming you have the money you don’t or forgetting about the cash you could be used for investment.
The amount of time saved cannot be overstated here. Not only with automated bank reconciliation lead to faster month-end closes, but it will minimize the number of errors that you need to go back and rectify.
Automated bank reconciliation also helps keep you away from any costly and embarrassing legal concerns. With everything immediately updated, it’s very easy to maintain compliance and reduces the risk of complicated errors. It also works in reverse - since you know that your bank reconciliation process is foolproof, it’s much easier to spot any kind of fraud.
How Punch Helps You Get Started
Punch Financial has long been an advocate of using automation to help elevate your accounting processes. We also understand that navigating technology like AI automation processes can often be difficult. That’s why we work with your company to design tailored solutions. This will let you use software to turn your bank reconciliation process into a breeze and let you focus on business strategy and growing your startup.
Every client gets tailored, flexible pricing. Let’s connect to give you a customized quote and free consultation. You have nothing to lose but so much to gain.