In the world of payments, hardly any other task is more overlooked than reconciliation. The mere mention of the word is often enough to trigger a yawn and glaze over the eyes of even the most dedicated payments manager. It's complicated and not fun.
At the same time, reconciliation is a fundamental step towards making sure your company is making money and being in control. So, it’s essential that you and your team get it right. Without a proper solution you won't be able to add new payment processors and grow your business into new channels and countries.
What if you could avoid the tedium of reconciliation but still make sure it gets done perfectly every time? Good news: That’s exactly what Reconciliation-as-a-Service (RaaS) is all about. And in this post, we’ll explain what that means for you and your team, and how to find a RaaS solution that’s worth the investment.
RaaS uses artificial intelligence and machine learning to reconcile your order systems and financial ledger with those of your PSPs and bank accounts. Instead of allocating your staff to carefully cross check your company’s financial records with multiple sources and in different formats, now you can subscribe to an RaaS provider and let their bot do the work for you—with remarkable precision. This will allow you to free up FTEs to drive value, not checking the records. You and your team will be notified in case of any exceptions or positions that need to be manually cross-checked. Of course you can also define a threshold for exceptions to avoid cross-checking small deviations.
RaaS providers have carefully designed their tools to perform all the reconciliation tasks that your team would normally have to perform manually, from complex data-matching and cross-checking, to preparing documents and analyzing data and reporting the exceptions.
"RaaS uses artificial intelligence and machine learning to reconcile your order systems and financial ledger with those of your PSPs and bank accounts"
You may have worked with reconciliation software in the past, but RaaS is different. It’s cloud-native, which means it offers numerous benefits for your company that traditional recon software cannot offer. There’s no need for in-house IT maintenance, and the service has access to vast datasets even beyond your company which enhance its artificial intelligence (AI) and machine learning capabilities. That means that, over time, the RaaS tool automatically becomes more accurate and better equipped to handle exceptions. And since it's cloud-native, it's immensely scalable and will handle any level of performance you need, performing the work of multiple FTEs in just seconds.
You can configure your RaaS tool to automatically log in to the relevant accounts and your company’s enterprise resource planner (ERP), extract the relevant ledger items and then perform reconciliation. It accumulates and links all sales orders with the corresponding transaction data. When it’s finished cross-checking the accounts, it automatically prepares a reconciliation statement to complete the process.
RaaS is highly recommended for any company that needs to reconcile payment data from multiple sources. If your company works with multiple PSPs or has multiple bank accounts, there’s a good chance you can save time and labor by using a RaaS tool.
There are good reasons to use RaaS. The right RaaS tool lets you streamline your entire reconciliation process. Here are some of the most important benefits:
If you’re an experienced payments manager, then a world without manual reconciliation probably sounds like a dream come true. Fortunately, financial software is getting smarter and smarter. At the same time, the financial tech (FinTech) market is becoming more diverse, with new providers entering the market all the time.
Now that you know more about what RaaS is and how it can benefit your company, we hope you’ll explore the options that are available to you and your team. With the right RaaS solution at your disposal, you can say goodbye to manual reconciliation. Spend less time cross-checking what has already happened, and focus on payment actions that improve the bottom-line and customer satisfaction.
If the past few years have taught us anything, it is just how beneficial the multi-channel sales strategy has been for retailers all over the world. But now there’s a new strategy on the rise that combines best practices from both online and offline retail and brings the customer experience to a whole new level. It is called omnichannel. And this post shows you exactly what it means, how it can benefit your business, and how to put it into practice.
If you are like most retailers, your payment service provider (PSP) is one of your most critical business partners. It connects you with paying customers in a wide range of markets and makes sure your payments are handled securely and efficiently. A well-executed payment process will deliver lower payment costs, increased sales, and more satisfied customers.
Data from your payment service providers (PSPs) is a valuable source of information that can help you optimize your payment strategy. However, every PSP provides data in different formats, frequencies, and levels of granularity. To improve the setup of your connected PSPs, you need a solution to collect, unify and make data available for payments managers to analyze allowing you to maximize profits.