Treasury Management

The three advantages of automated accounting

June 5, 2024

Do you or your finance team spend hours each month accounting bank statements movements? After a few weeks, do you notice that errors have occurred and that the bank balance does not match the balance book of the bank accounts? If you identify with these day-to-day problems in your organisation's treasury management, here is a solution that will put an end to these problems. 

Embat offers automated accounting for bank movements. By leveraging our connectivity with more than 13,000 banking institutions worldwide, finance teams can enjoy three key advantages:

    I. Reduce time spent on manual tasks

    II. Reduce errors in accounting 

    III. Avoid peaks of work at the end of the month to  balance balances

In the case of the first benefit, our customers report that they can save up to 10 hours a week on non-value-added tasks and spend them on other tasks that contribute, for example, to the growth of their organisation.

1. Differential value

After long months of work by our product team and engineers, Embat launches this new functionality, whose value propositions compared to other existing solutions on the market are four:

    I. Accounting settlement proposal engine that, by means of Artificial Intelligence and Machine Learning, offers the user the best suggestions for accounting settlement and bank reconciliation. Our engine scans the concept of the bank transaction and goes through the ERP databases (due date, amount, concept, customer or supplier name, dimensions, invoice number...), with the aim of proposing an automated collection and payment journal. 

    II. By controlling the process of posting bank transactions in the ERP, Embat has full traceability from the time the transaction appears in the bank until the entry is made, so that the bank reconciliation is automatically updated daily.

    III. Start-up process in minutes for banking connectivity and several weeks for ERP connectivity. As a software solution available in the Cloud, its integration takes much less time than the several months it takes to install on-premise software. Therefore, all that is required is connectivity with the ERP and the banking connectivity developed by Embat. From there, and after a parameterisation period of a few days, the user can carry out automated accounting processes.

    IV. A renewed and attractive user experience, to the taste of the most demanding financial teams. At Embat, we dedicate a lot of resources to design and to ensuring that our clients enjoy the experience of working with Embat. We want our users, in addition to saving long hours of work, to appreciate spending time with our platform.

There are two ways of working, one automated, where the platform suggests operations to be 'matched' that the user must validate, and the other manual, which is the alternative for those banking transactions that could not be automatically accounted for.

2. Functionalities of automated accounting

We can identify six use cases that substantially improve operations:

  • Automated posting based on concept, amount and any variable or dimension associated with outstanding balances.
  • Posting of differences and adjustments.
  • Partial posting.
  • Review of entries prior to sending them to the ERP.
  • Reconciliation of bank balances.
  • Download of files for auditing and/or access to Embat for auditors.

As with all SaaS solutions, the Embat team continues to work on evolving the functionality, which aims to automate nearly 90% of banking transactions, and to adapt it better and better to individual needs. In this way, we co-create with our customers to adapt to the greatest number of use cases.

The next versions are focused on feeding the software with more data to provide automated posting suggestions based on all the existing information between banks and ERPs.

We are also incorporating usability elements, such as keyboard shortcuts to facilitate the day-to-day work of the teams.

Similarly, we are incorporating audit logs so that customers have the traceability of what, who and when any element is modified from Embat.

3. Automated reconciliation

The treasury's automated accounting functionality incorporates an accounting reconciliation engine. As with the automated posting of bank movement entries, Embat suggests the reconciliation proposal. In case of discrepancies, the user can accept or reject the 'matches' suggested by the platform and reconcile manually.

"Thanks to Embat, we automate treasury and accounting administrative processes to allow the finance team to focus on executing the defined financial and expansion strategy," says Roger Regales, CFO & Board Member of Grupo Viko.

If there is already a solution on the market that can save you time on routine tasks, why wait any longer? Try it out and you will see how your organisation's treasury management becomes faster, more efficient and more productive with automated accounting.

Serrano García-Lisón
Co-founder @ Embat
Carlos, CFA and Industrial Engineer, brings his experience from J.P. Morgan and TowerBrook Capital Partners to corporate treasury management as a co-founder of Embat.

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