At the surface, bank reconciliation looks like a simple task. Just match the transactions reported
However, when you consider a large operation – picture a PBSA (privately built student accommodation) company managing thousands of beds across dozens of sites – the sheer volume adds a lot of complexity to the process. Different sites may deal with multiple banks, each site may have several accounts used for different purposes, and in some cases there may be dissimilarities in the processes followed across sites.
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Add to this the fact that data needs to flow between a number of systems: bank portal, accounting software, online payment processors portals and, often, the front-end software catering to the students. Downloading statements from different banks, processing inter account transactions and juggling between the accounting software, front-end software, payment processor and the GL (general ledger) make the process tedious and time consuming.
Additionally, payments and charges tend to cluster during certain weeks, increasing the workload for that period. All this can lead to issues like:
- Errors arising out of manual processing, especially during peak periods
- Less than stellar customer experience owing to issues
- Cascading impacts at the month-end reporting, slowing down the entire process
- Difficulty of scaling the
process orintegrating new sites or properties into the system
- Skilled accounting resources are bogged down in reconciliation related activities
Making Bank reconciliation Easy: Right People, Process and Platform
Working with 6 of the top student accommodation providers in the world and providing accounting
1. People – Bank Reconciliation Experts
Owing to the large volume of transactions involved, we have several people focusing on bank account reconciliation. By hiring talented and experience accountants as dedicated bank reconciliation executives or managers, we ensure that the quality of work is high.
Whenever possible, we hire people who already possess the experience of working for the PBSA or
With dedicated bank reconciliation teams that often go the extra mile to deliver on time with high level of accuracy, most of the common issues related to bank reconciliation are resolved.
2. Bank Reconciliation Process –
A well-documented and streamlined bank reconciliation process helps to speed up the entire activity and
A documented process would make every team member aware of the minutest part of the workflow. Such a workflow covers the steps that need to be taken for most of the common scenarios. For example, it outlines which accounts need to be used for specific purposes, how the student deposits need to be handled, how the monthly student rents are recorded and more.
In addition, we work to predefined SLAs and KPIs which gives the Finance Managers a clear understanding of the volume of reconciliations that can be handled by the team. This makes it a lot easier to scale the team as required, when new sites or properties are added into the system. As might be expected, the speed, accuracy and timeliness of the process is also boosted once the process is optimised.
As our relationship with a client progresses, we help accelerate finance and accounting transformation. Our Six Sigma teams minutely analyse the process, identify areas of improvement and help to hone it further.
3) Platform – digitisation and automation
The best people and process can help eliminate a wide range of challenges associated with bank reconciliation. However, a truly efficient process will make optimum use of accounting software and automation.
One key requirement is using the right software for bank reconciliation. QX has worked with most of the major accounting software and quite a few specialised bank reconciliation modules. Our team can help you select the best software for your needs or help you optimise the use of your existing system. Additionally, based on the client requirements, we also use our own bank reconciliation software and bank reconciliation automation solutions, along with a number Excel-based solutions that automate a majority of the steps involved in the process.
Would you like to discuss your bank reconciliation process with an expert? Want to learn more about how you can streamline and automate bank reconciliations? Please get in touch with us.