The reconciliation of accounting records with financial accounts are crucial for ensuring there are no irregularities in your company's expenses. Typically, reconciliation involves comparing a financial statement with your own company's accounting records.
Checking through each and every entry on records such as a bank statement means that you may need to make adjustments to your company's records such as deducting fees or adding interest income to ensure completeness.
An important factor in performing reconciliations is the retention of receipts and bills. These are the original evidence from which your records are created, so any mistakes in entries, either on your side or the bank's, can be identified from there.
It's essential to ensure that different team members perform your reconciliations from those who made the entries into the accounting records. This is not just because a fresh pair of eyes is more likely to spot mistakes, but the practice also helps protect against fraudulent activity.
The majority of accounting software packages have a reconciliation feature for checking off transactions that have cleared, but as your business grows, the amount of paper that expenses can generate can give more scope for error and delay.
A good example is the reconciliation of employee expenses. Traditionally, an expense claim might arrive from the employee as a manually completed form with a number of paper receipts attached to it. These receipts may come from airlines, vehicle hire companies and hotels, through to restaurants or coffee shops. Receipts can be reconciled against a business card statement, but if employees are claiming expenses from their personal credit cards or bank accounts, this can be harder to track.
Automation of employee expense reconciliation and management not only speeds up the processing of expenses but can save valuable time and prevent employees being out of pocket through delays or lost receipts.
The Soldo expense management solution goes one step further by providing complete control over employee spending in real time. Our prepaid business card can be issued to individual employees to limit spending. Not only that but additional rules such as specified time validity windows, geographical limits and limits on certain types of transactions serve to prevent unauthorised expenditure.
These controls are administered via a dashboard, typically managed by the finance team. The dashboard also shows transactions occurring in real time and allows the team to top up individual cards as and when necessary. Since the dashboard integrates with expense management software such as QuickBooks, Xero and Concur, as well as accounting software such as Sage, one half of an employee's expense claim has already been recorded in real time. All that is needed are the receipts to reconcile against the transactions, and this is taken care of by our Soldo app.
With the Soldo app, employees can photograph their receipts and upload the images to the platform as they travel. The details of the receipts are then pulled into the expense report. For the employee, uploading these receipts is all they need to do - their expense claim is automatically compiled in real time. For the finance team, all the data is ready for reconciliation and reporting the moment the receipts are uploaded.
Our fully automated spending and expense management system saves time and money both for the finance team and travelling employees. If you're interested in taking more control over your company's expenses, why not visit us here for more information, or alternatively, contact us to discuss what our solutions can provide for you.