Organizations across industry verticals globally are embracing digital transformation. Among various prominent sectors, the banking industry has undergone a noticeable change by incorporating advanced technologies and bringing about end-to-end automation in daily tasks. Hyperautomation is one such technology highly beneficial for organizations to safeguard customers’ interests.
Hyperautomation encompasses Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) enabling organizations to automate routine tasks and eliminate human-induced errors resulting in improved productivity and efficiency.
What is Intercompany Reconciliation?
Intercompany Reconciliation (ICR) is defined as the process of matching transactions between two legal entities belonging to the same organization.
The importance of ICR lies in eliminating subsidiary company transactions from the balance sheet of the parent company. This simplifies the identification of external transactions between subsidiary companies.
Why should banks automate ICR?
Here are the key reasons why organizations are leveraging Hyperautomation to automate their ICR process:
- Intelligent Dashboards: RPA enables organizations to collate data from diverse sources
and provide intelligent dashboards on different types of transactions that have been cleared or aborted with valid reasons. This provides actionable insights enabling faster decision-making.
- Transactional data consolidation: Monitoring transactional data is vital for banks.
Compiling and validating complex data from unstructured sources manually is error-prone, and even a minute error ends up costing companies dearly. It is also time-consuming to accumulate data from disparate sources and forward it in an advanced structured format.
But with RPA tools, transactional data is extracted seamlessly without any errors. This is further customized to streamline the ICR process and improve overall operational efficiency.
- Easy accounts settlement: From increasing payment accuracy to enhancing the resilience of accounts, Hyperautomation helps in performing multiple tasks with ease and efficiency. With growing competition, banks often find it demanding to safeguard the interests of their customers. Hyperautomation curbs the limitations and helps in making transactions transparent. This saves time and reduces human intervention without hampering the proposed service quality.
- Faster closures: If done manually, accountants end up spending the majority of their time
identifying the removable transactions. But via Machine Learning and RPA software, banks easily identify and eliminate recurring and periodic transactions rapidly.
To efficiently resolve issues while creating a compliant accounting process across all their entities, companies are automating their Intercompany Reconciliation process. By removing human intervention, thereby potential for errors in intercompany reconciliation equations, Hyperautomation effectively standardizes a critical aspect of companies’ overall accounting processes.
Contact a Hyperautomation specialist today to gain a clear understanding of the idea and harness its complete benefits.