For successful supplier statement reconciliation, your process needs to be effective.
How else will you gain all the benefits it offers with little time and effort? This blog shares seven best practice tips to make your supplier statement reconciliation highly successful.
1. Regular reconciliations:
Set a consistent schedule for supplier statement reconciliation. A monthly or quarterly schedule ensures that discrepancies are identified and resolved quickly. This stops errors from building up over time and provides higher accuracy for reports and forecasts.
2. Quantity of supplier statement reconciliations:
Attempt to reconcile around 80% of your statements to get the most out of the process. However, reconciling all supplier statements would be the ultimate best practice. Manual reconciliation is only possible with a huge amount of resource, so to be truly effective, we recommend automated statement reconciliation.
3. Clear documentation:
Maintain records of supplier statements, invoices, purchase orders, and any relevant communication. Digital records with a backup system, such as an ERP system or organised files on your server, are an effective way to do this. A clear paper trail makes it easier to spot discrepancies and trace the source of errors. It is also valuable for audits and dispute resolution.
4. Automate supplier statement reconciliation where possible:
Leverage automated statement reconciliation tools to streamline the process. Automated solutions can quickly match large volumes of transactions, reducing the risk of human errors, saving time and allowing you to discover value in the form of credit notes, rebates and overpayments. This technology can also help with gathering invoices and statements, reconciling the totals, creating a report, keeping documentation safe and having an audit trail. However, ensure that there’s a balance between automation and human oversight for cases that require manual intervention.
5. Communicate with suppliers effectively:
Maintain clear, open lines of communication with your suppliers to build strong relationships and prevent misunderstandings. If you encounter exceptions, reach out to the vendor promptly to clarify and resolve the issues.
6. Review procedures often:
Continuously assess and update your statement reconciliation procedures. Identify error patterns and implement process improvements to address underlying causes.
7. Train your team regularly:
Confirm your team are aware of the procedure and any changes. If your organisation uses automated supplier statement reconciliation, ensure training is up to date so they can use new features effectively.
These best practices allow you to create an effective process that can save vast amounts of time, especially compared to a manual process. This allows you to gain all the benefits, including recovery of overpayments, credits, rebates and discounts, and of course more accurate ledgers.
We mentioned automation in this blog to help save time and increase the volume of statement reconciliations you can complete. With the help of our software, you can match a supplier statement in just 7 seconds, and get straight to managing those exceptions.