Efficient bank reconciliation is necessary for any business to understand and have a clear idea of its financial structure. Let us consider a situation where you own a small clothing business. In this situation, you may have to send payments to your vendors and suppliers as well as receive payments from your customers. Therefore, recording transactions is a regular part of your workday routine. However, the real problem arises when your monthly bank statement does not match your cash balances.
This can happen when you use manual reconciliation methods. When you enter each transaction manually, it takes up a lot of time, and there can be typing errors. In your busy schedule, you might also forget to record transactions that are small, causing inaccuracy in your financial records. So, consider software like Zil Money to automate the bank reconciliation process efficiently.
What Is Bank Reconciliation?
To ensure that financial records are accurate, businesses use bank reconciliation. With this, you can compare your business transactions against your company’s bank account statements. If there are any discrepancies between the two, you account for them, and you can adjust the book accordingly.
However, manual reconciliation can be a time-consuming process and prone to mistakes. This can be eliminated with Zil Money, as you can combine all bank account transaction data in one place, helping to reconcile financial data.
Why Do Small Businesses Need Efficient Bank Reconciliation?
- For Tracking Cash Flow – With reconciliation, you can ensure that your business has a clear and updated view of its cash balances. This can help small businesses make wise decisions on their payments and investments as well as manage funds accordingly. You may also avoid overdrawing accounts and eliminate the associated fees by regularly reconciling bank accounts.
- For Easily Identifying Discrepancies – You can detect any mistakes like double entries, incorrect transaction amounts, etc., by reconciling efficiently. This can help avoid the risk of disputes between you and your suppliers or clients and maintain a good relationship between them.
- For Budgeting Accurately – Reconciliation can help small businesses get a clear picture of their financial situation. With this, they can better prepare their budgets and be ready to face any cash shortages or surpluses.
Effective Bank Reconciliation from the Cloud-Based Platform
With Zil Money, you can go through the entire check transaction you have done even from multiple financial accounts. This is because the platform is integrated with more than 22000 financial institutions in the U.S. This way, you may get the entire business transaction data from your multiple accounts and make bank reconciliation easier. You can create reports category-wise, payee-wise, company-wise, or bank account-wise. The real-time tracking and reporting feature of the platform makes it easy for you to track your business transactions.
Multiple Payment Solutions for Your Small Business
Zil Money offers multiple payment solutions for all your business needs. With the platform, you may transfer funds to your suppliers or vendors using checks, ACH, wire transfers, and card transactions.
- Checks- Small businesses can avoid ordering expensive preprinted checks from third parties using the platform. You can instantly print business checks at your convenience using the platform. To print checks, get some blank stock papers from a nearby office store and any printer. If you do not want to print, you may also mail checks to your vendors or suppliers. The check-by-mail feature of the platform helps you avoid the hassles of traditional check mailing. You may effortlessly send checks with a few clicks.
- eChecks-Small businesses can use the eCheck feature from the cloud-based platform. eChecks can be sent in a one-time printable PDF format on the platform via email or SMS. Your recipient can print and deposit them like a regular check. You may also add any attachments like important documents or invoices with eChecks.
- ACH- With the cloud-based platform, small businesses can send ACH transfers efficiently. You may send one-time or recurring ACH payments to suppliers or vendors efficiently at a reasonable price. Make ACH transfers anytime from anywhere; the payments are secured as the platform is an official member of NACHA. For fast and efficient last-minute transactions, utilize the same-day ACH feature of the platform. With this, you can transfer funds the same business day, and your recipients will usually receive them the next business day.
- Wire Transfers- You can send money domestically and internationally using wire transfers. The cloud-based platform offers efficient wire transfers with fast processing and affordable transaction fees. Small businesses can easily send large transactions to vendors and suppliers with wire transfers. For quick and easy transfer of large payments, choose the wire transfer service of the platform.
- Credit Cards-When you are short in cash flow, you may pay your vendors or suppliers via credit cards using the platform. Most vendors or suppliers do not accept credit card payments due to the interchange fees. However, with the platform, you can pay them via credit card even if they do not accept it. This is possible as the platform allows you to choose the method that your vendor prefers to get paid. This way, you can get rewards, and your payee does not have to pay any fees.
Conclusion
With Zil Money, small businesses can do the bank reconciliation process efficiently. You can reconcile bank data from multiple accounts and manage transactions easily. Also, the platform provides multiple payment options such as Checks, eChecks, ACH, wire transfers, and credit card payments.
