Keeping accurate financial records is a non-negotiable best practice for any business. But as businesses grow and transactions multiply, manually reconciling accounts becomes time-consuming, error-prone, and frustrating for finance teams.
Automated bank reconciliation software not only helps improve accuracy but also reduces the time accounting teams spend on manual reconciliations. Beyond matching transactions, these solutions provide insights and connect with other financial systems to streamline the entire bank reconciliation process.
In this post, we’ll look at the best automated bank reconciliation software available, what features to look for, and how these tools can simplify your month-end process.
What is automated bank reconciliation software?
Bank reconciliation software is a tool designed to streamline the complex and typically manual process of reconciling bank transactions against your company ledger, helping accountants identify and address discrepancies swiftly.
Software eliminates human errors, saves significant time and labor, and simplifies reporting and analytics to assist in financial decision-making.
Understanding the role of automation in bank reconciliation software
Accounting automation is transforming the reconciliation software landscape by introducing advanced algorithms that take care of previously manual tasks. Automated bank reconciliation tools go beyond simple matching tasks; they prevent errors, detect anomalies, and propose adjustments, leading to smarter financial controls.
With automation software, accounting teams can:
- Streamline processes with precision: Software handles large transaction volumes quickly, reducing the time spent on manual matching and reviews.
- Enhance financial accuracy: Automation prevents errors by identifying inconsistencies before they impact reports.
- Detect anomalies in real time: Software flags unusual transactions that may indicate fraud, incorrect postings, or internal errors.
Advantages of automated bank reconciliation software
Using automated reconciliation software brings numerous benefits to businesses, especially in terms of efficiency, accuracy, and financial control. Here are some key advantages:
Error reduction
Automated reconciliation software is a powerful tool for minimizing human error, ensuring a higher level of accuracy in financial statements and reports. Accurate data is critical for regulatory compliance and plays a fundamental role in effective forecasting and informed decision-making.
By automating the process, bank reconciliation software significantly reduces the possibility of human errors that might occur during manual data entry or processing. As a result, accounting teams and leadership can feel more confident in their financial data and get immediate insights to drive business decisions.
Time and cost savings
Implementing automated reconciliation software translates into substantial time and cost savings for companies. By automating repetitive and time-consuming bank reconciliation tasks, finance teams can refocus their efforts toward more strategic initiatives rather than being tied up in tedious manual reconciliations.
The efficiency gained through automation leads to significant reductions in operational costs and allows finance professionals to focus on tasks that add value to the business.
Improved financial controls
The automated checks and balances embedded within bank reconciliation software reinforce financial controls within an organization. These systems offer enhanced oversight, helping teams find discrepancies or irregularities early. This proactive approach enables finance teams to address potential issues quickly, strengthening the integrity of financial data.
Strategic decision-making
Accurate and timely financial data generated by automated reconciliation software empowers businesses to make informed strategic decisions.
Immediate access to precise cash position data allows for a deeper understanding of financial health, trends, and patterns, enabling executives to make strategic decisions that drive growth, increase efficiency, and improve profitability. Trustworthy data enables organizations to seize opportunities and mitigate risks effectively.
Enhanced data security
Modern automated reconciliation software incorporates advanced data security measures. These systems are designed to adhere to stringent security protocols, ensuring the protection of sensitive financial information against potential threats.
Robust encryption, access controls, and regular security updates give businesses confidence that their financial data is safeguarded against unauthorized access, breaches, or data loss, complying with industry best practices and regulations.
Key bank reconciliation software features
As you compare reconciliation solutions, here are some critical features to consider:
Intuitive user experience
The best automated reconciliation software will prioritize an intuitive user experience. Look for a dashboard that is easy to navigate, with intuitive features that require minimal training. This includes visibility into reconciliation status, clear workflows, and straightforward reporting capabilities.
A solution directly embedded in your enterprise resource planning (ERP) platform is ideal, as it provides a familiar interface that requires less training for your team.
Real-time processing
Time is of the essence in financial operations. Real-time processing is a must-have, contributing to a continuous close process. This allows finance teams to close faster, make timely decisions, and maintain ongoing accuracy in financial records.
Comprehensive data analysis
Advanced data analysis tools are a must-have in reconciliation software. This includes predictive analytics, trend analysis, and custom reports that help businesses understand the financial narrative behind the numbers.
Customization and flexibility
Businesses vary in their reconciliation needs, so software that allows for customization and flexibility will stand out. Software should be able to accommodate the unique financial structures and rules specific to each business.
Best automated reconciliation software
Here are our top picks for automated bank reconciliation software:
1. NetCash by Netgain
NetCash is NetSuite-native software that simplifies bank reconciliation by automating transaction matching, bank-to-ledger alignment, direct cash flow reporting, and data aggregation across multiple accounts. It eliminates manual processes and ensures finance teams can reconcile accounts quickly and accurately without switching between systems.
With NetCash, what used to take an accountant hours to complete at the end of the month can now happen in just a few clicks. Finance teams gain complete control over their financial close with pre-built audit reports, customizable reconciliation rules, and seamless system integration.
Features:
- NetSuite-native: Keeps financial records updated in real time, eliminating discrepancies between systems
- Direct cash flow report: Provides real-time cash flow data and AI-powered analysis to drive business decisions
- Seamless CSV transaction uploads: Supports banks that don’t allow open banking so all transactions are captured
- Real-time data transfers via API: Ensures faster, more reliable updates compared to traditional bank connections
- Automated transaction matching: Aligns bank statements with NetSuite ledger entries to reduce errors and speed up reconciliation
- Pre-built audit reports and dashboards: Provides instant access to financial data for audits and compliance reviews
- Multi-bank data aggregation: Centralizes reconciliations across different financial institutions within one platform
- Customizable reconciliation rules: Adapts the automation process to fit specific business needs and policies
Pros:
- Only bank reconciliation software that offers automatically generated direct cash flow reports
- Features pre-built reports to cover your bases in terms of compliance
- Comes fully set up for businesses with complex financial operations
- Significantly reduces the time and effort required for reconciliation
- Can be combined with additional solutions like NetClose for a complete reconciliation solution
Cons:
- Only available to NetsSuite users
Pricing: Contact Netgain for custom pricing.
Simplify reconciliation with NetCash.
2. Nolan ABR
Nolan Advanced Bank Reconciliation is a solution that can automate and streamline the bank reconciliation process within Microsoft Dynamics GP and NetSuite. It offers automated bank transaction imports, flexible matching rules, and the ability to reconcile multiple bank accounts and currencies. The platform also includes tools for auto-generating and posting general ledger (GL) journals directly from bank statements.
Features:
- Automated bank transaction imports: Directly imports bank transactions into Dynamics GP and NetSuite
- Flexible rules: Utilizes user-definable matching and grouping criteria to automatically reconcile the majority of transactions
- Auto-generate and post GL journals: Creates and posts GL journals from bank statements automatically
- Multi-currency: Supports reconciliation of multiple bank accounts and currencies
Pros:
- Allows you to reconcile the bank statement directly to the GL
- Groups specific types of transactions in order to match them to bank statements
Cons:
- Only works within Microsoft Dynamics GP and NetSuite
- Businesses using other accounting platforms would need to adopt a whole new platform
- May present a steep learning curve
Pricing: $337.50/mo
3. FloQast
Primarily recognized for its close management functionalities, FloQast also offers automated reconciliation features. The software provides users with tools to automate reconciliation workflows.
Features:
- AI transaction matching: Utilizes AI to create customized rules for automating complex account reconciliations across various accounts, including banks, credit cards, and intercompany transactions
- Automated journal entry management: Streamlines the creation, approval, and posting of journal entries
- Real-time subledger integration: Automates data feeds between your ERP and third-party solutions
- Automated Triggers: Captures actions performed in other systems to sync updates automatically
Pros:
- Users say it is easy to navigate
- Offers the ability to consolidate accounting functions into one centralized location
Cons:
- Requires integration with existing ERP systems
- Limits companies using less common financial platforms
- Pricing can be expensive for smaller companies
Pricing: Pricing is not publicly available.
4. Excel
Microsoft Excel is a spreadsheet tool that can be adapted for financial reconciliation through formulas, macros, and automation features. While not a dedicated reconciliation solution, it provides some functionality to automate transaction matching, detect discrepancies, and generate reports using built-in functions. Excel also integrates with Power Query and Power Automate to streamline data imports and automate reconciliation workflows.
Features:
- Formula-based reconciliation: Uses formulas and conditional formatting to match transactions and flag discrepancies automatically
- Power Query for data automation: Automates the import, transformation, and consolidation of financial data from various sources
- Bank statement imports: Allows finance teams to upload and process bank statements for reconciliation against GL records
- Power Automate integration: Connects Excel with other systems to automate workflows, such as pulling financial data from ERP platforms
Pros:
- Highly customizable
- Most users are familiar with this platform
Cons:
- Lacks built-in reconciliation controls
- Requires manual setup and maintenance for automation to function properly
- Requires manual data entry to keep data up-to-date across platforms
Pricing: Free if your company already uses Microsoft 365
5. QuickBooks
QuickBooks is an accounting software platform mainly targeted toward small and medium-sized businesses. It offers invoicing, expense tracking, and financial reporting. QuickBooks includes features for bank reconciliation, payroll management, and inventory tracking.
Features:
- Automated bookkeeping: Categorizes income and expenses from linked bank accounts, reducing manual data entry
- Recurring transactions: Allows users to set up recurring invoices, bill payments, and journal entries to automate routine tasks
- Invoice automation: Generates and sends invoices automatically, including payment reminders for overdue accounts
- Bank feed integration: Connects with bank feeds to match transactions with recorded entries, simplifying reconciliation
Pros:
- Offers a simple dashboard for beginners
- Features various integrations with third-party software
Cons:
- Designed primarily for small businesses
- May not handle complex reconciliation needs as well as other platforms on this list
Pricing:
- Simple Start: $35/mo
- Essentials: $65/mo
- Plus: $99/mo
- Advanced: $235/mo
6. Sage Intacct
Sage Intacct is a financial management platform that can automate and streamline accounting processes for businesses of all sizes. It offers AI-powered accounts payable automation, real-time data synchronization, and customizable approval workflows. Sage Intacct also allows for automated invoice processing, integration with other business systems, and financial reporting.
Features:
- AI-powered invoice processing: Automatically extracts and processes invoice details
- Automated bank reconciliations: Matches bank transactions with internal records
- Recurring payment automation: Schedules and processes recurring payments automatically for vendor payments
- Customizable approval workflows: Allows businesses to define and automate approval processes
Pros:
- Provides multiple functions on one platform
- Users report the app is simple and straightforward to use
Cons:
- Requires custom setup and configuration to fully utilize automation features
- Users may see extended implementation time
Pricing: Pricing is not publicly available
7. Xero
Xero is another accounting software platform that can automate financial tasks for small and medium-sized businesses. It offers automatic bank feeds, invoicing, and expense tracking. The platform can also handle bank reconciliation, payroll management, and integration with third-party apps.
Features:
- Automatic bank feeds: Imports transactions directly from your bank
- Bank reconciliation: Matches imported bank transactions with your records
- Repeating invoices: Schedules recurring invoices to be sent automatically to regular customers
- Automated accounts payable: Processes supplier bills by extracting details from emailed invoices, creating draft bills for approval
Pros:
- Users say the clean and intuitive design makes it easy to use
- Offers basic setup for people new to accounting software
Cons:
- Lacks advanced automation features for large-scale reconciliation
- May underperform for enterprises
Pricing:
- Early: $20/mo
- Growing: $47/mo
- Established: $80/mo
8. Adra by Trintech
Adra by Trintech is a financial close automation suite that can automate accounting processes for most organizations. Adra offers multi-way transaction matching, automated balance sheet reconciliations, and centralized close task management. The platform also includes customizable dashboards for visibility over the financial close process.
Features:
- Multi-way transaction matching: Automates the matching of transactions across multiple sources
- Automated balance sheet reconciliations: Streamlines the reconciliation of balance sheet accounts by automatically matching transactions and identifying discrepancies
- Centralized close task management: Provides a unified platform to manage and monitor all close-related tasks
- Journal entry automation: Facilitates the creation and posting of journal entries directly within the platform
Pros:
- Can capture and process a large volume of journals
- Generates reports with a few clicks
Cons:
- Focuses on mid-market companies
- Large companies may need a more tailored solution
Pricing: Pricing is not publicly available.
9. Multiview ERP
Multiview ERP is a financial management platform that can automate and streamline accounting processes for large enterprises. Users can access financial consolidation, customizable reporting, and integrated budgeting and forecasting. Multiview ERP also includes tools for accounts payable and receivable automation as well as inventory management.
Features:
- Advanced financial consolidation: Automates the consolidation of financial data across multiple entities
- Customizable reporting: Generates financial reports automatically for insights into business performance
- Accounts receivable automation: Enhances cash flow management by automating invoice generation and payment tracking
- Integrations: Offers an open API for integration with existing business systems
Pros:
- Users report helpful customer support
- Offers many options for customizing reports and data analysis
Cons:
- Customization requires IT support
- May be less flexible for finance teams without dedicated technical resources
Pricing: Pricing is not publicly available.
10. OneStream
OneStream is an AI-powered enterprise financial platform that helps large organizations automate and streamline various financial processes. It offers automated financial close and consolidation, real-time data integration, and customizable reporting. The platform also includes workflow automation, transaction matching, and advanced analytics for financial operations.
Features:
- Automated financial close and consolidation: Accelerates the financial close process by automating data loading, reconciliation, and reporting
- Data integration: Connects to various GL and ERP systems, enabling automatic data synchronization
- Workflow automation: Standardizes tasks, approvals, and notifications to streamline processes such as financial close and planning
- Automated transaction matching: Utilizes configurable rules to auto-match transactions from diverse sources
Pros:
- Can integrate nearly all source systems into one unified platform
- Users report appreciate that they can implement changes without IT involvement
Cons:
- Pricing can be expensive
- May not be suitable for SMBs without extensive resources
Pricing: Pricing is not publicly available.
11. HighRadius
HighRadius is an AI-driven platform that automates accounts receivable and treasury management processes. It handles automated cash applications, AI-powered collections management, and real-time credit risk monitoring. The platform helps with deductions management, electronic invoicing, and integration with existing ERP systems.
Features:
- Automated cash application: Utilizes AI algorithms to match incoming payments with open invoices
- AI-powered collections management: Employs machine learning to prioritize collection efforts, automate dunning communications, and enhance recovery rates
- Electronic Invoicing (EIPP): Automates the delivery and tracking of invoices through a secure online portal
Pros:
- Users report there is a strong user community for product support
- Handles many processes without human intervention
Cons:
- Primarily designed for accounts receivable automation
- Reconciliation features may not be as fleshed out as dedicated reconciliation software
Pricing: Pricing is not publicly available.
Automated reconciliation software use cases
Every business needs to perform bank reconciliations, regardless of the industry. Automated reconciliation software is a versatile tool for any business, streamlining financial processes and enhancing accuracy across various sectors. Here are just a few of the industries that particularly benefit from using automated bank reconciliation software:
Financial services
The banking and finance sector, characterized by a high volume of transactions and intricate financial operations, reap substantial benefits from the accuracy and efficiency offered by automated reconciliation software.
These solutions assist financial institutions in reconciling numerous transactions, accounts, and ledgers. Automating these processes ensures precise record-keeping, compliance with regulations, and a comprehensive view of financial health.
Automated bank reconciliation tools enable swift identification and resolution of discrepancies, significantly reducing the risk of errors and fraud.
Retail
Retail businesses, handling multiple revenue streams and processing a vast number of transactions daily, find automated reconciliation software indispensable in streamlining their financial processes.
These solutions empower retailers to reconcile sales data, inventory, and financial accounts efficiently. Automated bank reconciliation tools enable them to identify discrepancies between sales records, payment receipts, and inventory levels, ensuring accurate financial reporting and inventory management.
Healthcare
The healthcare industry operates within a complex financial landscape, characterized by diverse payment sources, intricate billing mechanisms, and stringent regulatory compliance.
Automated reconciliation software plays a pivotal role in ensuring accuracy and compliance within healthcare finance. These solutions aid healthcare providers in reconciling billing statements, insurance claims, and payments received from various sources.
Automated bank reconciliation tools streamline the reconciliation process, minimizing errors and discrepancies in financial records.
How to choose the best automated bank reconciliation software
Selecting the best automated reconciliation software for your business involves careful consideration of several key factors. Here are some criteria to consider when choosing automated reconciliation software:
User interface and support
The software's user interface plays a critical role in user adoption and efficiency. An intuitive, user-friendly interface simplifies the reconciliation process, reducing the learning curve for finance teams.
Additionally, robust customer support is essential for addressing queries, troubleshooting issues, and providing guidance during implementation and daily usage. Software providers that offer responsive, comprehensive support contribute significantly to a smoother integration and ongoing utilization of the reconciliation system.
Cost and ROI
The cost of acquiring and implementing bank reconciliation software must be balanced against the potential return on investment (ROI). While considering the upfront investment, it's crucial to analyze the long-term benefits in terms of operational efficiency, time savings, error reduction, and improved accuracy in financial reporting.
A software solution that delivers substantial ROI through increased productivity, reduced manual effort, and enhanced accuracy justifies its cost over time and proves to be a valuable asset for the organization.
Automated data import
The ability to seamlessly import financial data from multiple sources will save you valuable time. Look for software that integrates directly with bank feeds, ERP systems, and accounting platforms to eliminate manual uploads and reduce the risk of data entry errors.
Automated imports ensure transactions are recorded in real-time, keeping reconciliation workflows up to date without human intervention.
Scalability
As businesses grow, so do their financial transactions and reconciliation complexities. The right reconciliation software should handle increasing transaction volumes without performance slowdowns. Find a solution that can adapt to expanding operations, multiple entities, or global transactions.
Security features
Financial data is highly sensitive, so look for solutions that offer end-to-end encryption, multi-factor authentication, and detailed user access controls to prevent unauthorized access.
Audit logs should track every action taken within the system, providing a clear record of who made changes and when. Without strong security measures, reconciliation errors or fraud can go undetected, putting your company at risk.
Embedded software solutions
Embedded solutions offer a better experience compared to standalone tools that require complex integrations. With an embedded solution, financial data stays within a single ecosystem, reducing the need for manual imports or potential sync errors between systems. This eliminates the risk of integration failures, data mismatches, and time spent troubleshooting connection issues.
Customization
Every finance team has unique reconciliation needs, so find software that can adapt to your existing workflows rather than forcing a rigid process. Look for software that allows custom rule creation for transaction matching, configurable approval workflows, and flexible reporting dashboards that reflect your specific reconciliation structure.
Without customization, teams often waste time adjusting their processes to fit software limitations rather than using tools that truly align with how they work.
Learn more about automated account reconciliation software
Can bank reconciliation be automated?
Yes, reconciliation can be automated using specialized software like NetCash. NetCash matches transactions, detects discrepancies, and flags anomalies for you. Embedded in NetSuite, it connects directly to bank feeds and accounting platforms to pull in financial data and reconcile accounts with minimal manual intervention.
How do you automate a bank reconciliation in Excel?
You can use formulas and conditional formatting to automate bank reconciliation processes like transaction matching and discrepancy highlighting in Excel. However, setting up these formulas correctly can get tricky, especially with large datasets or complex reconciliation rules. For a faster and more reliable process, dedicated software like NetCash automates reconciliation seamlessly, saving your team valuable time.
What is the best automated bank reconciliation software?
The best automated reconciliation software depends on your business needs. NetCash is considered one of the best due to its automated transaction matching and real-time anomaly detection. Unlike standalone reconciliation tools, NetCash is directly embedded in NetSuite, eliminating data transfers and reducing errors. It’s also the only reconciliation software that automatically generates direct cash flow reports.
What is the difference between account reconciliation software and bank reconciliation software?
Bank reconciliation software like NetCash focuses specifically on matching transactions between a company’s bank statements and internal records to ensure all deposits, withdrawals, and payments are accounted for.
Account reconciliation software like NetClose covers a broader scope, reconciling not just bank accounts but also credit card transactions, intercompany accounts, accruals, and general ledger balances. While bank reconciliation is one part of the process, full account reconciliation software helps ensure accuracy across all financial accounts before closing the books.
A complete close accounting solution brings together these tools, along with lease and asset management, to centralize all your data and simplify your month-end close.
Streamline month-end processes with automated bank reconciliation
Automated reconciliation software helps finance teams reduce manual work, improve accuracy, and achieve faster month-end close cycles. The best solutions handle large-scale transaction matching, automate bank-to-ledger reconciliation, and provide real-time insights to keep financial data audit-ready.
For those looking for the best reconciliation software, NetCash by Netgain offers a NetSuite-native solution with real-time data transfers, automated bank-to-GL matching, direct cash flow reporting, and multi-bank data aggregation. With custom reconciliation rules, pre-built audit reports, and manual transaction uploads, NetCash ensures reconciliations are fast, accurate, and headache-free.
Get a personalized demo to see how NetCash can help you conquer reconciliation challenges.
