If carried out accurately, financial processes can help provide the actual picture of financial health on a daily, monthly, and yearly basis. It can help businesses to plan their strategy, and their product and make any diversions accordingly.
The decision-makers of the business can make data-driven decisions more accurately with accurate results. But the manual processes are time-consuming and the resources are wasted on manual efforts such as data-gathering, cleaning, and organizing.
Instead, businesses can efficiently use the team to evaluate, analyze and make more prominent decisions. By switching to automation you add more efficiency and streamline the processes as the repetitive tasks such as data entry, account reconciliation, and reporting can be taken care of seamlessly.
Additionally, automation can also help you to better track your financial performance, by generating reports and providing real-time data on your financial status. Some examples of automation tools that can help with financial processes are accounting software, budgeting software, and financial management software.
Most businesses use Excel to reconcile data from time to time. However, it can be slow and inaccurate if the data is not entered correctly, formulas or functions are not set up properly, or there are too many records to review manually. It is important to check the data integrity, to ensure that the data matches the source which can be a lengthy process. It’s also important to consider the size of the data set and the complexity of the reconciliation process when deciding on whether to use Excel or specialized software for the task.
