Accounting Team is often considered as the backbone of a company. However, only a few companies equip their accounting team with a flexible and scalable reconciliation system that allows them to timely support organizational changes or react to rapid growth.
Let’s look deeper at what a ‘scalable reconciliation system’ is and why you need to scale your accounting system. We will walk you through all aspects that could help you better understand the importance of a scalable reconciliation system.
A ‘scalable’ system can deal with extra work without affecting performance. It is flexible enough to increase or reduce the system production and consumption based on the organization’s current development.
Most reconciliation systems proposed in the current market cannot offer such flexibility to the user, which leaves the Accounting Team no choice but to perform reconciliation under an unreasonable risk, especially when facing an unstable growing stage.
Reconciliation ensures sustainable financial health for a company.
Your reconciliation management needs to align with your business ambition as your business develops and grows. A scalable reconciliation system can overcome the complex reconciliation challenge of high-volume transactions regardless of the types of currency, point of sales, or payment methods. It seamlessly removes the traditional legacy system’s obstacle and fully replaces the manual spreadsheet from the reconciliation process.
In short, it is the best reconciliation system choice for a company determined to grow and thrive under any circumstance.
The proper time to implement a scalable reconciliation system is always now. As an expert in financial controls and reconciliation management, we often suggest both scale-ups and enterprises integrate a flexible and scalable accounting system as early as possible.
It allows the Accounting Team to fully leverage their workforce and support the company when facing a sudden growth in the volume of accountable transactions in the future.
XREC solution streamlines and automates your account reconciliations and matching to simplify, speed up and apply economies of scale to your daily processes and enhance visibility over all your accounts.
In this paragraph, we have collected 3 significant advantages you can have by shifting from a traditional setup to a modern and flexible reconciliation system.
A ‘scalable’ reconciliation system means the system’s design can handle and reconcile an extra volume of data without affecting the efficiency and quality.
The scalable accounting system digitalizes and automates the end-to-end accounting process, which allows the accounting professionals and financial controllers to accelerate the entire reconciliation operation and support the growth of the business.
While expanding the business to new territory, the company often encounters a sudden increase or decrease in the volume of transactions to proceed. As a result, the Accounting Team might trigger profit leakages if the reconciliation system is not flexible enough to adapt to a fast-changing environment.
Is your accounting system work around the clock; however, the outcome is still under your expectation? Or you are still struggling with a high volume of inaccurate and incomplete data? These mentioned points can lead the company to a dangerous financial situation.
Implementing a scalable reconciliation system can firstly boost the speed of processing a high volume of data, which is often encountered while expanding the business worldwide.
Moreover, most reconciliation systems equip with robust AI models or complex algorithms that can enhance data quality. As the repetitive tasks have been removed and the data quality has been guaranteed, the accounting team can focus their time on the mission with extra value-added.
The managerial executives can make informative decisions with precise and up-to-date data without delay, which can be an absolute game-changer to high-competitive industries and sectors.
A scalable reconciliation system should be flexible enough to scale whenever your business needs or deploy wherever your business is going.
In addition, it allows the company to minimize the operational risk during the business expansion and ensure security throughout the entire process, which is extremely important for, like, the financial industry.
Additionally, the scalable reconciliation system can seamlessly integrate with most enterprise resource planning systems and ensure data synchronization between the systems. As a result, different business units can share internal data safely without boundaries.
However, to obtain this advantage, the accounting profession and IT experts should carefully verify if the reconciliation systems and its data centre fully comply with industrial standards like ISO 27001.
Here are 3 methods that are commonly used by most organizations:
For various reasons, many companies prefer to build their own system, even though the cons weigh heavier than the pros in most decisions.
Building its own system can ensure the system aligns with the objectives and preferences of the company. The in-house IT can have complete control over the system without depending other third parties.
However, building its own system could potentially consume considerable time to development by in-house IT. In addition, the question of the system completeness and the outcome quality must be removed if the organization is seeking a better reconciliation process instead of a trouble-making machine.
Organizations can also consider the proposition from the accounting system or reconciliation software providers. Since they have both expertise in accounting management and technical solution development, they can give insightful recommendations with executable plans.
The software provider can provide a higher value than the previous two methods by offering a compatible or all-in-one solution that can make up for what is missing in the system in a very short period.
Another plus of this approach will be the high flexibility. For example, reconciliation software providers, like CLAIXYS, could offer larger room for the business to adjust the budget and the data volume.
When discussing the reconciliation system’s transformation, it is hard to omit professional accounting firms or consulting firms.
Many executives rely on accounting and consulting firms’ expertise due to the industry’s reputation. In addition, these firms offer a more comprehensive system package for companies facing scaling opportunities or organizational change.
With this method, you can simply imagine that you outsource your accounting system and management to a third party. Then, based on your business requirement and budget, consultants from the firm will select the suitable solutions based on your business requirement and funding to build the system that can handle your day-to-day operations. In most cases, they can guarantee you a satisfying outcome.
However, the budget might be a significant concern for this type of project and deployment. Most professional accounting firms or consulting firms have various and complex pricing structures.
Moreover, the lack of transparency and real-time visibility throughout the process could potentially lead to a dangerous situation for Accounting Team to handle.
XREC Solution reduces the complexity of data reconciliation by identifying all essential information, giving you the ability to create precise matching rules to match the data in the way you prefer.
Selecting and implementing the right reconciliation system that will deliver the desired result for better financial control and overall performance and efficiency of the back office requires detailed business knowledge and expertise in information technology. The transformation can start with a well-organized and actionable model.
By leveraging 20 years plus experience, CALIXYS is proud to demonstrably support organizations to expand their accounting system worldwide with a profound scale-up model.
Companies can easily integrate and deploy their preferred applications or recommended systems worldwide with our scale-up model. As a result, it could save considerable time for the business operation and minimize the unforeseeable risk throughout the deployment.
Meanwhile, the team of experts from CALIXYS will provide customized support and necessary training for its clients throughout the whole transformation journey.
Ensure the long-term profitability and regain your operational sustainability with a world-leading scale-up model. Book a demonstration with our consultant and learn more now.