Payment Reconciliation, Turbocharged

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.

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

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.

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

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
2. 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.