Asset Finance Company Automates Bank Reconciliations Using AutoRek
Bank Reconciliation Carried Out Manually:
Our client was the asset finance division of a major global bank which was struggling to control its very high volume bank reconciliations. Using their existing manual reconciliation processes, even with a very large headcount, the client was struggling to maintain control over the reconciliation. The reconciliations were complex requiring the user to gather data from multiple sources and process the data across multiple spreadsheets using macros that were difficult to maintain.
Due to huge volume of transactions, the reconciliations were only being performed at bulk level- that is matching off bulk entries that were made up a large number of underlying transaction. The reconciliation therefore often failed to identify underlying problems in the bulks resulting in the reconciliation not being effective.
The resultant manual process was prone to error and was difficult to control and manage. The time taken to do the data collation and matching left little time to investigate and resolves the breaks and other issues identified by the reconciliations.
The drudgery of the work was extremely demotivating for the staff involved and resulted in the reconciliations function having a higher staff turnover than other areas of the clients operations.
Automated Bank Reconciliation Process:
AutoRek automated the gathering and preparation of the general ledger accounting records and bank statements to prepare the data for reconciliation.
AutoRek took additional information from client’s systems’ cashbooks and bank terminals and used this information to automatically disaggregate the bulk entries into the underlying transactions, allowing the reconciliation to be performed at the lowest level of granularity and thus ensure that all errors in the data were picked up by the reconciliation. This disaggregation and enrich of the data with multiple sources, of course, created millions of transactions to reconcile- an impossible task in a manual world but the work of seconds for AutoRek.
AutoRek’s labeling tools were used to analyse the breaks that remained on the reconciliation after the matching was completed for cause and the action required to correct them. Thus driving the workflow required to resolve these breaks.
As AutoRek could automate these processes it meant that the reconciliation could be performed overnight ready for the client’s staff when they came in the morning. This allowed the client staff to focus all their efforts on the more interesting work or resolving breaks and driving out further process improvement.
Improved Process, Matching Performance and Reporting:
- 99% of transactions were reconciled automatically.
- The client was able to decrease the headcount required to perform the reconciliations while also increasing the quality of the reconciliation performed and thus reducing the risk of control failure.
- As the client could focus its efforts on the resolution of breaks, the reconciliations were quickly cleaned up, reducing the number and age of outstanding transactions.
- Staff turnover was reduced.
- AutoRek’s analytics tools enabled the client to analyse its processes spot bottlenecks and other issues with existing processes.
Find Out More
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