Reconciliation: how embedded accounting is changing the game
Technology is emerging rapidly, shaping and improving the financial landscape for both institutions and consumers. Financial sectors that are evolving include trading, investing, customer service, risk assessment, fraud detection, and payments.
There’s one key financial area that every industry should consider to streamline and help their business move forward successfully - smart automation for financial reconciliation.
Auto-reconciliation eliminates guesswork in the accounting process. Here’s more to know about how to access real-time financial data at any granularity to get a holistic, unified view of your accounting landscape. Using these advanced methods can be a game changer for businesses of any size.
Embedded accounting makes accounting reconciliation simple. Traditionally, reconciliation has been time-consuming and prone to errors. But this system brings together comprehensive financial data in a fully reconciled format to a standard chart of accounts. It’s the last, crucial piece of the financial data puzzle.
An automated solution can power accounting functions and help businesses manage reconciliation swiftly and effectively. It’s a great fit for marketplaces, on-demand services, fintechs, startups, e-commerce, and today’s gig economy.
The benefits of leveraging automation
Embedded accounting enables sophisticated algorithms to analyze large volumes of financial data much faster than humans. The benefits of this type of smart automation include:
Ingesting financial data from any source
Easily collect invoices, payments, and other financial data from both internal and third parties giving the ability to compare financial data easily to expedite the financial close process.
Enables real-time reconciliation
In the past, reconciliation was often conducted monthly or quarterly. Errors or discrepancies could go unnoticed for weeks or even months. With smart automation, real-time transactions provide organizations with up-to-date and accurate financial information.
Minimizes errors and risks
Even the most seasoned financial professional can make mistakes when working on repetitive projects. Embedded accounting automates the reconciliation process and the risk of human error is greatly reduced. Automation leads to cleaner financial reporting and analysis. Businesses can make better-informed decisions and stay in compliance with regulatory requirements.
Unlocks the power of full double entry accounting
Financial professionals can effortlessly record transactional data in a standardized ledger for clear traceability, superior data accuracy, and unlimited scalability.
As an organization expands, larger volumes of financial transactions need to be handled. Automation helps scaling businesses handle a higher amount of transactions without a costly increase in resources.
Overall savings when embedded accounting is utilized can be significant. The need for extensive manual labor and the likelihood of costly errors is reduced.
When using embedded accounting powered by smart automation, business teams are on the same page and have access to a common set of reconciled financial data. Tedious calls and meetings to keep a team up-to-date can be avoided. This type of automation is especially beneficial to large businesses with multiple entities.
Automated reconciliation helps guard against fraud due to its accuracy and speed. Irregularities can be quickly identified, reviewed, and addressed without delay.
The Modfin solution
Modfin is a financial data platform that is easy-to-use and highly adaptable to complex scenarios. Modfin serves as a businesses’ financial backbone. It i’s a vital link between finance and technology, offering embedded accounting solutions to simplify the management of financial operations and accounting.
Modfin does the heavy lifting with a simple API, helping you effortlessly capture diverse financial data, transform it into a transactional ledger, and access it real-time at any granularity.
The Modfin platform has over 2.5 billion entries booked and $1 billion payments reconciled. The platform is integrated with Stripe, Plaid, Paypal, Braintree and many more. Modfin serves a wide array of industries including marketplaces, on-demand services, fintechs/lenders and e-commerce. Virtually any type and size of business can benefit from Modfin’s smart accounting automation that offers:
Standardizing and structuring bespoke operational data as well as connecting third party providers
Holding financial data within a transactional ledger in a common format to make iterating on your financial process easy
Intelligent matching and flagging in the Modfin platform to identify unreconciled transactions as they occur
Easy integration of third-party data via pre-built connectors giving you a holistic view of your business
Effortlessly creates custom, advanced, transaction-level financial reporting, feeding data into ERP systems and exporting to a data warehouse for custom applications.
The future is now. Learn how Modfin can enhance your businesses reconciliation projects today.