Accounting departments are often judged by their close time, the ability to close the books for the previous month, for example. A four day close, which might have once been considered the exception, and impressive, has now become the new norm. Even high performance accounting teams struggle to meet these new aggressive standards. With a highly automated bank reconciliation tool, the work is done for you automatically daily or weekly.
Many businesses rely on entry-level accounting software and elaborate spreadsheets for various financial tasks. As a result, a lot of work goes into reconciling and validating transactions. For example, in “Nolan’s ABR helps Faithlife Corporation close accurate books every single month,” a short video posted on YouTube.com, you can see how Faithlife once manually managed payment transactions. They would compare the activity reports generated by a payment gateway, primarily consisting of customer credit card payments, and would then compare that data with bank deposits using an elaborate Excel® spreadsheet. They would later compare that spreadsheet data with the bank statement. This time-intensive manual process was wasting valuable time and introduced the risk for mistakes. Unable to close the books each month, Faithlife had a quarterly close process that took a few weeks’ time. Frustrated by the process and concerned for the fiscal health of the business, Faithlife integrated the Advanced Bank Reconciliation (ABR) solution with Microsoft Dynamics GP.
This powerful duo streamlined the entire process, cutting down weeks of effort into mere minutes. Now when a credit card payment is processed, the Microsoft Dynamics GP cash receipt is processed but instead of processing that to a bank account, it is processed with a credit card clearing account separated by credit card provider. Data is downloaded from the gateway daily and each transaction has a unique identifier. ABR can automate the reconciliation for each transaction and now transactions are cleared within minutes. Every morning, cash settlement reports are reconciled and Faithlife can be confident with real-time financial data.
Like many companies, Faithlife found that an increase in sales had outgrown their basic accounting systems. The time needed to close the books can be better spent on other important tasks. Watch the video and contact Nolan Business Solutions for information about closing month end much faster by deploying stronger technology.
By Nolan Business Solutions, an International Microsoft Dynamics GP ISV and NetSuite Provider