TL;DR: AI automates the reconciliation of bank statements with invoices and accounting records, identifying only discrepancies that require manual review. This reduces the time spent on reconciliation from hours to resolving just a few exceptions.
Manual Reconciliation: A Time-Consuming Task
Reconciling bank statements involves matching each payment and withdrawal with the corresponding invoice or accounting record. When there are hundreds of transactions, someone has to manually compare them, search for matches, and resolve any discrepancies. This task is monotonous and never completed on time.
Until the reconciliation is complete, you can't be certain about your actual balance or who has paid.
How AI Automates Reconciliation
AI automates the reconciliation process, making it faster and more accurate.
- Automated Matching. AI matches payments with invoices based on amount, date, and reference number.
- Partial Payments. It can handle cases where the amount doesn't match exactly or is in a different currency.
- Exceptions First. It identifies transactions that don't match for quick human review.
- Audit Trail. Every match is recorded and verifiable.
Measurable Results
- Most transactions are reconciled automatically
- Humans only need to resolve a few exceptions, not all transactions
- Accurate account balance is available much sooner
Frequently Asked Questions
Will it work with our bank's statement format?
Yes, it reads standard statement formats and matches them with your accounting data.
What about transactions without a reference number?
It attempts to match them based on other characteristics, and if it can't, it flags them for review.