How does automated payment reconciliation work?

Automatic payment reconciliation enables a business to upload an electronic version of a bank statement and quickly reconcile it. The bank provides the e-version using “matching rules” designated in the system. Automatic reconciliation works through several steps, leveraging advanced technologies to eliminate manual processes and simplify workflow. Here's a brief overview of how the automated accounting process works: #1) Collecting Data Payable reconciliation starts when the system collects data from various sources, like bank account statements, electronic resource planning (ERP) systems, credit card statements, payment processors, bookkeeping platforms, and other online payment tools #2) Integrating Data The data is then integrated into a central repository where it can be processed. This often involves importing data via bank reconciliation software or connecting it through an application programming interface (API). #3) Matching Transactions The system then uses pre-defined rules to match transactions from different sources. For example, it will compare external records (like financial statement entries) with internal records (like a digital wallet) of payments made. This matching process looks for exact matches based on criteria like date, amount, and payee. #4) Identifying Discrepancies Anything unmatched or partially matched data is flagged in the system as a “discrepancy.” These issues might be caused by timing differences, payment errors, or typos. #5) Managing Exceptions The system eliminates manual payment reconciliation by providing tools for handling exceptions. This management enables users to investigate and resolve discrepancies. This process may involve verifying transaction data, updating records, or following up with banks to correct issues. #6) Automated Adjustments Finance teams can configure the system to make automated adjustments for recurring discrepancies. The software can auto-correct known issues or post-adjusting entries to reconcile minor differences. #7) Generating Reports Automated payment reconciliation software generates comprehensive reports that detail matched transactions, discrepancies, and resolutions. These reports can be customized and exported for further review and auditing. #8) Real-Time Updates Systems designed to facilitate accounts payable and receivable will process data in real-time, providing relevant information on the status of reconciliations. These updates ensure records are always accurate, current, and ready to aid in better decision-making. #9) ERP Synchronization Reconciled data is synchronized with your ERP or accounting system, ensuring a consistent flow of data and concise reporting. #10) Continuous Monitoring Automated payment reconciliation software often includes tools for continuous monitoring. This system allows users to address any new discrepancies as they occur, enabling prompt resolution. Tipalti speeds up the payment reconciliation process with features like drill-down filters, transaction level details, ERP synchronization, and real-time integrated reports. The system offers account reconciliation and remittance results across all payment methods, entities, and geographies. This system eliminates manual reconciliation and refines general ledger reporting.

What are the benefits of automated reconciliation?

Automated reconciliation offers many significant benefits, including: Faster Financial Close Automated reconciliation creates a new level of efficiency where companies can achieve quicker month-end and year-end close. Enhanced Accuracy Automated systems minimize error-prone processes and manual data entry by precisely matching transactions, reducing issues, and enhancing the accuracy of financial reporting. Increased Cost Savings Reducing manual labor and human errors will increase cost savings and streamline cash flow management. Automating processes also eliminates time-consuming tasks, giving staff more access to business growth activities. Improved Compliance Automation ensures all types of payment reconciliation adhere to regulatory standards and internal policies. Our system reduces the risk of non-compliance and associated fees or penalties. Real-Time Processing Automated reconciliation is conducted in real-time, providing current data that helps make timely decisions and improves overall financial health. Better Fraud Detection Automated payment reconciliation systems can quickly identify unusual transactions and flag them. This system aids in detecting and preventing fraud while increasing general oversight. Additional Benefits Increased efficiency by reducing manual methods Access to better data for accurate forecasting Detailed and customizable reports for greater insight Scalable tech that can handle growing volumes of transactions Automation integrates seamlessly with ERPs and other systems

Can an automated payment reconciliation solution integrate with accounting software?

Yes, an automated payment reconciliation solution can integrate with accounting software, providing several key benefits like: Enhanced reporting with a faster financial close Seamless data transfer with ERP and API integration Updated accounting records in real-time, reducing the risk of errors Efficient and customized workflows that consolidate data Compliance with policies and standards, with a robust audit trail Common integrations include: ERP Systems: Many payment reconciliation tools integrate with popular ERP systems, such as SAP, Oracle, and Microsoft Dynamics. Accounting Software: Common integrations are QuickBooks, NetSuite, Xero, and Sage. Payment Processors: Integration with payment gateways like PayPal, Square, and Stripe. Integration methods to consider: APIs: Payment reconciliation software typically offers APIs that enable seamless integration with accounting software platforms. Direct Plugins: Some systems provide direct plugins or connectors that can be installed to facilitate integration.

What defines a good payment reconciliation solution?

A good payment reconciliation solution is defined by several key characteristics and capabilities, ensuring efficiency, accuracy, and reliability in managing financial transactions. Here are a few features to look for in an efficient payment reconciliation system: Smart Automation The ability to automate reconciliation is crucial. A good system should automate payment matching against invoices or bank statements, reducing manual effort and minimizing errors. Seamless Integration The chosen solution should integrate seamlessly with a company’s existing accounting systems, ERP, and payment processor. This enables real-time data synchs and ensures accurate financial records. Real-Time Reporting An intelligent system will offer comprehensive reporting capabilities. It should generate detailed reports on reconciliation status, unmatched transactions, and discrepancies. Exception Handling Effective exception handling is crucial. The solution you choose should identify and flag any discrepancies immediately, with tools to investigate and resolve them. User-Friendly Interface Look for payment reconciliation software that offers an intuitive interface with easy navigation. This interface facilitates user adoption on a company-wide scale. Support and Training The system should offer comprehensive training resources and assistance to resolve issues quickly. It must also have extensive training resources to optimize system usage. Additional Features Flexibility for different transaction types and payment methods Provide accurate reconciliation outcomes with a clear audit trail Strong security measures to protect sensitive financial data Scalability to handle increasing volumes of transactions Reasonable return on investment (ROI) by reducing errors

What ERP and accounting system does Tipalti integrate with?

Tipalti is a comprehensive suite of solutions that offers robust integration capabilities to streamline payment processes, accelerate reconciliation, and enhance financial management. The system integrates with a variety of ERP and accounting systems, including: 1. ERP Systems SAP B1 Oracle NetSuite Microsoft Dynamics Sage Intacct QuickBooks Enterprise Acumatica Accounting Systems QuickBooks Online Xero Sage 50 (US and Canada) Intuit QuickBooks Desktop (via CSV import) Sage 100 ERP Integrating with popular ERP and accounting systems allows businesses to leverage Tipalti's automated payment solutions while maintaining seamless synchronization with their existing tools.

Home / AP Automation / Payment Reconciliation

Automated Payment Reconciliation

Automatically capture and sync all your spend data to your ERP.

Automated Payment Reconciliation Features

Accelerate Financial Close by 25%

Close your books faster with real-time reconciliation that removes the pressure of month-end crunches. Improve accounting controls to reduce manual work and boost team efficiency. Tipalti helps combine financial reports across entities and sub-ledgers, giving you full insight into every transaction.

See All Payments in One Report

No more stitching together countless spreadsheets to reconcile payments. Tipalti handles multiple payment types, including wire transfers, digital wallets, and ACH, across payment methods, currencies, subsidiaries, and regions in a single file. Reports update in real time and are available 24/7.

Automated payment reconciliation helps save time, boost accuracy, cut time-consuming manual work, and manage working capital. Thanks to built-in discrepancy detection, it streamlines your closing process and minimizes the risk of fraudulent payouts. It also strengthens audit trails and account reconciliation across your organization.

Access Detailed Insights Across Entities

Get comprehensive insights into all transactions across entities, currencies, and payment types. Easily track both attempted and executed payments with transaction matching and automated exception alerts for unmatched entries. Multi-currency support helps maintain data accuracy across regions. You can also connect payment data directly to your bank account for a full audit trail.

Download reports to Excel anytime for easy analysis. Link reconciliation directly to bank statements and accounts to simplify bank reconciliations.

Connect With Your ERP or Accounting System

Auto-sync payment results with your ERP or accounting systems, seamlessly integrating payment status into the general ledger and sub-ledgers. Sync real-time payment data to support ERP-specific features like posting periods, projects, and custom fields. This makes payment reconciliation work simpler. It builds data accuracy and slashes manual work.

Explore Integrations

Drill Into Detailed Reports

We provide detailed reports on payments, suppliers, invoices, taxes, and accounts receivable. We cover everything from blocked suppliers to transaction data history. Drill down by type of payment, time frame, or entity to get the insights you need, when you need them, supporting faster close and better decisions with advanced reconciliation software.

Integrations

Pre-built connections to extend automated workflows

Easily extend and simplify your workflows with pre-built integrations and powerful APIs for your ERPs, accounting systems, performance marketing platforms, HRIS, SSO, Slack, credit cards, and more.

See All Integrations

Testimonials

Don’t just take our word for it,

see what our customers are saying

With Tipalti, our operations have become very quiet—which is good because it means we’re happy. Checks used to go missing, and people would be frustrated with the manual tasks, but now the process is seamless. I don’t hear anything anymore, which I’d say is a win.

David Metz

EVP of Finance, Elite Staffing

Tipalti has been a game-changer for closing the month. Digital approvals ensure invoices are entered correctly and on time, allowing us to manage previously insurmountable issues with ease.

Matt Clapper

VP of Finance, Pro Football Hall of Fame

Tipalti houses everything, so approvers can easily check if something has been paid or is still pending. It’s a huge benefit for us. Tipalti has saved us significant time and reduced manual errors.

Diana Ramos

Staff Accountant, JLab

Customer Stories

Explore our customer success stories

Sugar CRM

SugarCRM avoided new hires, streamlined vendor management with fast payments, and integrated seamlessly with NetSuite ERP.

Product

Accounts Payable

Procurement

Region

United States, Global

Industry

Software and technology

Size

100 – 1000

JLab

With Tipalti, JLab’s AP team boosted productivity by 68% and managed 35% more invoices without adding headcount.

Product

Region

Industry

Size

Endera

With Tipalti, Endera streamlined invoices, automated vendor onboarding, and improved international payments by eliminating manual wire transfers.

Product

Accounts Payable

Region

United States

Industry

Software and technology

Size

Sub 100

All My Children Daycare

By adopting Tipalti, All My Children Daycare and Nursery School achieved remarkable operational improvements and audit readiness.

Product

Region

Industry

Size

Centerfield

Centerfield Media cut 20 weeks of AP work yearly and saved 12 days on monthly close using Tipalti Accounts Payable.

Product

Region

Industry

Size

Sensei

Sensei saved 40 hours/month on AP tasks, avoided hiring extra finance staff, and freed the team to grow and build new skills.

Product

Accounts Payable

Region

United States, Global

Industry

Healthcare

Size

100 – 1000

GumGum

By leveraging Tipalti’s AP and mass payments automation solution, GumGum achieved significant gains in both scalability and operational efficiency.

Product

Region

Industry

Size

PubMatic

PubMatic streamlined global mass payments, cut processing time to 3 minutes, and enhanced operations with a robust NetSuite ERP integration.

Product

Accounts Payable

Mass Payments

Procurement

Region

United States, Global

Industry

AdTech

Size

100 – 1000

Vydia

With Tipalti, Vydia now executes reliable monthly royalty payouts and large-scale advances through a centralized payments process.

Product

Region

Industry

Size

How It Works

Up and running in weeks, not months

Collaborative customer support with customized onboarding to get you operational quickly

Step 1

Plan

Kickstart your success with a comprehensive setup call that reviews your manual AP workflow, outlines the onboarding plan, validates technical configurations, and prepares for training.

Step 2

Configure

Tipalti’s implementation experts set up your hosted portal, create sample payment files, configure payment options and email integrations, and establish ERP integrations using our pre-built solutions.

Step 3

Deploy

In-depth training for AP staff on the Tipalti Hub and the end-to-end AP automation functionalities, ensuring thorough knowledge transfer to turbocharge your successful launch.

Step 4

Adopt

Support user adoption and change management during launch while guiding suppliers through onboarding. Once set, you’ll be ready to execute your first payment run and officially launch Tipalti.

Step 5

Optimize

Continued technical support by phone and email. Tipalti customer success team learns your goals and offers solutions to reach them.

Platform Features

Work smarter, not harder

With AI and machine learning capabilities, an intuitive UX, and quick and easy global payments, you can drive unprecedented efficiency.

AI

Smarter processes. Instant insights. More productivity. Less manual work. Tipalti AI actually gets things done.

Global

Manage all entities’ payables operations from a single system. Enable each entity to operate with its own unique workflows and branding.

Payment Fraud Protection

Proactively prevent fraud by identifying unusual patterns. Block suspicious payees from receiving payments, prevent them from creating new accounts, and get notified of abnormal activities.

Controls and Compliance

Stay up-to-date and protected automatically, with multi-jurisdictional tax compliance, built-in payment protections, and enterprise-grade controls and security.