Why automating processes is the best solution to organize financial reconciliation?
In many banks, financial reconciliation is performed manually, with the support of EUCs (End-User Computing), such as Excel spreadsheets. These tools, widely used to collect and access a massive range of data, are often adopted because they allow users to manage, control and manipulate data in a straightforward and timely manner.
But their use is associated with many challenges that substantially impact financial information security, veracity, tracking, and compliance. If you are using EUCs, you probably identify with some of these challenges:
- Loss of time derived from manual processes and heavy calculations.
- Errors in financial statements due to failures in data entry or spreadsheets can generate money losses and operational impacts.
- Lack of information control and risk of data repetition.
- Lack of data recovery tools.
- Increased risk of fraud.
- Compliance with financial regulations.
- Audit failures due to lack of tracking of information, data, documents, records, and discrepancies for each account specified in the reconciliation.
What is the solution to this problem? Automate the financial process with the help of technology.
The advantages of financial automation
Financial automation is the solution for banks that want to optimize their financial processes and increase efficiency. The use of technology minimizes the risks associated with manual tasks and frees financial teams to focus on more strategic activities.
One efficient way to carry out financial automation is through platforms that store information in the cloud and on the service provider’s servers, ensuring data accessibility, end-to-end control, backups, and traceability. With no-code/low-code technology, end users can integrate other solutions into the platform without the need for programming skills, reducing dependency on technical teams.
Another advantage of these platforms is security, as cloud service providers comply with national and international data protection standards and are subject to ongoing regulatory compliance. Financial automation platforms offer high protection against attacks and data loss and enable rapid problem resolution.
In the case of the discovery of a critical vulnerability, it is possible to correct the problem almost immediately, whereas, in enterprise software, it may be necessary to coordinate an action plan with server administration and implement fixes and tests.
Simetrik as a solution for financial reconciliation
Simetrik wanted to take advantage of cloud-based software’s benefits to create a highly flexible no-code/low-code solution that allows customization and automates end-to-end financial reconciliation processes. Adopted by organizations in a wide variety of industries, such as Rappi, Nubank, Addi, Grupo Modelo, and Movii, Simetrik has several advantages over EUCs:
- Designed to handle large volumes of data, ensuring operational and compliance risk control.
- Changes and updates can be made in real-time, without human intervention, reducing errors and delays. With this, organizations can reconcile information in less time and minimize the risk of errors.
- Automates data preparation and reconciliation.
- Allows monitoring information through dashboards and alarms.
- Automatically feeds the ERP.
- Adaptability and scalability over time in response to changes or new business rules.
- High-security standards preserve confidentiality, transparency, and availability of information.
- Protects against incidents, ensuring access control and data recovery in case of disasters.
- Records each action or process with date and time, allows consulting historical information for auditing purposes, makes a good follow-up of income and expenses, and has total control and traceability of the financial status.
- The high speed of information processing gives finance and technology teams more time to focus on strategic activities.