Your organization’s expansion and profitability depend on accounting as it aids in recording all receipts and outlays. Accounting also serves as the foundation for creating end-of-year financial reports for lenders, including the income statement, balance sheet, and cash flows. These are crucial elements for stakeholders to make data-centric decisions.
Even so, some accounting tasks can be challenging, particularly those involving bank statements. The lending cycle might be slowed down and rife with faults when processed manually. You might consider using bank statement software to ease your accounting processes.
Financial institutions can make decisions regarding credit profiles more quickly and provide premium financial services to applicants whose applications are granted thanks to automated bank statement analysis. Bank statement software processes large volumes of transaction data, improving overall organizational effectiveness.
Still, now convinced? Here are five signs that tell you that your organization needs bank statement software:
- You spend more time in accounting processes than growing your organization
Most of your time goes into creating reports or staring at spreadsheets because your current system cannot handle the workload or if you are forced to enter data manually when it could be automated. Because the lending cycle is slow, errors keep piling up, and you have too many stages of data validation and approval, resulting in much fewer loans.
Automated bank statement software helps cut down a lot of time and fasten the lending cycle. This way, you can focus on ventures to grow your business rather than sticking your nose in long hours of accounting.
- Manual bank statement processing causes errors to pile
Accounting data paves the way for strategic decision-making. However, if they have inaccuracies, these records might not be helpful. In truth, mistakes can influence your company’s decision-making. Human errors are common when performing manual accounting and have the potential to affect the growth of the business.
Therefore, if manual errors have grown widespread in your organization, it is high time you install bank statement software. The majority of bank statement software is created with error-free functionality in mind. Additionally, they can alert you to any potential mistakes, including errors in your business systems. The positive result is reflected in reliable accounting reports.
- Hiring more data entry operators instead of underwriters
Banks and other financial organizations investigate borrowers’ backgrounds and use underwriting to determine their creditworthiness. Over here, underwriting means issuing loans at a handy risk in return for an amount. When accounting is done manually, an organization hires more data entry operators instead of underwriters which slows down the process of background checks and hence the lending cycle. Hiring more data entry operators doesn’t have a direct positive impact on the business; thus, you’re caught up in a never-ending cycle that stops you from scaling and growing your business. However, businesses can now determine where bank deposits come from, what assets a person owns, their income, and if they can repay loans on time by using bank statement software.
- Financial frauds are at large in your organization
Accounting is susceptible to fraudulent activities. Data security is a legitimate worry for every business, but one of the most secure methods to save data is through cloud accounting. These days, enterprises scale quickly, and using the cloud is an excellent method to keep up and cooperate with your adviser. By opting for bank statement software, it is possible to spot instances of financial fraud as well as patterns in frequently occurring transactions. Models for statement analysis compare the transactions recorded in account statements with those recorded in the business ledger. If the information is accurate, the accounts are confirmed and authenticated, and mismatched amounts can be used to identify fraudulent activity in accounts.
The fine-grained security features allow for audit trail and give access rights to control who can modify the data.
- There is a risk of losing bank statement data
In any company, all accounting records are crucial. Even those that are pretty old shouldn’t be rid of or destroyed. This is important as historical records are critical for creating accurate forecasts. Therefore, make sure your files are stored somewhere secure. But locking them in a cabinet has a lot of risks associated with them. But you can save your files using bank statement software. The majority also have cybersecurity to protect your data and a backup option from assisting you in recovering your accounting documents if you misplace them. Rest assured that your accounting and financial data is secure and getting backed-up regularly.
There are a number of indications that your organization needs bank statement software, as you’ve seen in this article. Several bank statement software in the market help automate the accounting process. Make sure you choose the appropriate bank statement software if you decide to go that route.