Automated matching compares bank and ledger records against rules. It works well when the underlying data is consistent, and poorly when descriptions, references and dates vary widely.
Before introducing automation, work through the following points.
- Standardise how transactions are described and referenced in your ledger.
- Agree the matching rules, including amount, date tolerance and reference.
- Decide how unmatched items are classified and who reviews them.
- Set limits for how long items may remain open.
- Keep a record of reviewer sign off for each period.
With these in place, the system handles routine matching and your team concentrates on exceptions, where judgement is needed.
Written by the Rinacle team. This article is general information and does not replace advice on your specific circumstances.