Why is Hospitality Bank Reconciliation Crucial but Complex?
Businesses across various industry platforms must ensure their financial closing statements are backed by accurate accounting reconciliations in order to maintain financial integrity. In this regard, bank reconciliation can be seen as a critical accounting process. By definition, it entails the comparison of two sets of finance and accounting (F&A) records to confirm that they tally. This process also identifies any discrepancies that need attention or rectification.
Easier said than done. More so, when it comes to bank reconciliations in the hospitality industry.
Fragmented Teams & Operations
This is an organizational sector that by its very nature has accounting processes fragmented at the grassroots level. Since most hotel chains comprise multiple properties with several accounts in a bank, corresponding accounting teams are also most likely scattered across properties. This degree of fragmentation and silos when combined with working through disparate systems like multiple banking relationships makes the task all the more difficult.
Extant Hospitality Bank Reconciliation Process
Factoring in the volumes of accounts payable and accounts receivable across a number of properties means your hospitality business spends significant time and money in processing bank reconciliations. Manual processes also substantially impact the level of accuracy across these processes. With each property having multiple banking relationships this activity could snowball into a very manual-intensive, time-consuming process.
Intelligent Process Automation for Bank Reconciliation
When considering the scenario facing Hospitality bank reconciliations, Intelligent Process Automation (IPA) provides an ideal solution to streamline hospitality’s extensively decentralized and fragmented accounting processes. With IPA in place, the entire bank reconciliation process can be automated with Artificial Intelligence (AI) handling the processing of various formats of unstructured content and Robotic Process Automation (RPA) mimicking human actions that bridge processes for end-to-end automation.
With IPA, the entire bank reconciliation process right from download of bank statements, reconciliation against accounting records and update of data into the accounting system can be automated end-to-end.
Employing IPA can cut the time taken to complete bank reconciliations by 80%. It can also increase the efficiency of results and reduce the cost incurred from relying on large-member teams. With accounts fully digitized, mismatches in balances can be flagged sooner and resolved without any human intervention.
IPA for automated bank reconciliation, above all, ensures you are on top of your cash and liquidity positions and take more sound business decisions. Reap the benefits of uninterrupted hospitality business operations thanks to accounting automation.
If you’d like to explore IPA implementations for your hospitality business, our AI team at RAP would be delighted to take you further. Our next-gen, AI-powered content intelligence platform RAPFlow enables full lifecycle AI orchestration on a single platform. When used in tandem with our RPA tool RAPBot, it provides end-to-end workflow automation capabilities that can be deployed in just weeks. You can even build your own use case and the platform can easily integrate with your existing systems. Book a demo to get a more detailed understanding of how our products can transform your business.