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Bank reconciliation

Würth Business Services handles the non-core financial operations to support the Finance Teams of companies within the Würth Group. Our Team ensures that companies maintain error-free and detailed accounting records, settle payments on a timely basis, carry out effective vendor management, and speed up the accounting processes. We handle different processes under the Accounts Payable and Accounts Receivable portfolio.

Among different processes we handle under the Accounts Receivable portfolio, Bank Reconciliation is one of them. In this process, we compare, analyze, and verify the bank statement with the invoices in the Enterprise Resource Planning (ERP) system. If there are any differences, we analyze the missing payments and schedule a dunning run.

Work Flow
Benefits
Transition

Work Flow

WORK FLOW OF THE PROCESS

  • 01. Receive

    Receive the payment advices from the bank

  • 02. Compare

    Compare the bank statement with invoices in ERP system

  • 03. Analyze

    Analyze and book the difference in the ERP system

  • 04. Prepare

    Prepare a monthly bank statement and share with the customer

Benefits

Value-added

BENEFITS OF OUR CUSTOMERS

☞ Diligent checking of bank statements with invoices to ensure no discrepancies

☞ Provide discounts to those customers who made early payments

Transition

TIME TAKEN FOR TRANSITION

Step 1

Analysis of requirements – 1 Week

Step 2

Documentation – 1-2 Weeks

Step 3

Create framework – 1 Week

Step 4

Step-by-step implementation – 2 Weeks

Step 5

Transfer – 1 Week

For more assistance in understanding the transition process, kindly get in touch with us at contact-wbs@wuerth-industrie.com

Case study:

Transforming Bank Reconciliation for Enhanced Financial Accuracy and Transparency


Introduction:

In the world of finance and accounting, accurate Bank Reconciliation is essential for maintaining transparent financial records, identifying discrepancies, and fostering trust with customers. Our customer, Dokka Fasteners AS, recognized the need for transferring the task to solve discrepancies and ensure efficient financial management. Our dedicated team receives payment advices from the bank, compares them with invoices in the ERP system, analyzes and books any discrepancies, and prepares monthly bank statements to share with customers. This meticulous process ensures financial accuracy and transparency.

Problem:

Our customer encountered challenges in effectively reconciling bank statements manually. The customer needed to give a considerable amount of man-hours, and there were delays in identifying discrepancies, and difficulties in maintaining transparent financial records. These inefficiencies hindered the company's ability to provide customers with accurate financial statements, manage discrepancies effectively, and streamline financial transactions. This impacted financial accuracy and management.

Solution:

Recognizing the need to enhance the Bank Reconciliation process, we adopted an approach to improve financial accuracy and transparency. Our key solutions included:

1. Meticulous Payment Reconciliation: We initiated a manual process to meticulously compare payment advices received from the bank with invoices in the ERP system. This led to identification of any discrepancies.

2. Discrepancy Resolution: With manual processing, we established a dedicated team to analyze and book discrepancies in the ERP system, ensuring accurate financial records.

3. Monthly Bank Statements: We actively prepared monthly bank statements to share with customers, providing them with a clear overview of their financial transactions.

Results:

The changes implemented in the Bank Reconciliation process led to significant improvements in financial accuracy, transparency, and customer relations for Dokka Fasteners AS. Our results included:

1. Payment Reconciliation Improvement: By implementing meticulous payment reconciliation and discrepancy resolution, we reduced payment discrepancies. This enhanced financial accuracy and minimized potential disputes with customers.

2. Efficient Discrepancy Resolution: Despite manual processes, discrepancy resolution time was reduced. This, in turn, allowed timely resolution and improved financial transparency.

3. Strengthened Customer Satisfaction: Effective communication and transparent monthly bank statements resulted in an increase in customer satisfaction.

4. Time Saving: Our approach led to significant time savings per month. We saved nearly 8 hours for our customer in a month. This saved time can be utilized for executing different core operations.

Conclusion:

By transferring the Bank Reconciliation process, our customer solved discrepancies and implemented transparent financial communication for maintaining healthy financial practices and strong customer relations. By implementing meticulous payment reconciliation, responsive discrepancy resolution, and transparent reporting, we successfully improved financial accuracy and customer satisfaction. The results highlight the value of a well-executed process in maintaining effective financial operations and delivering customer service excellence.

Transfer the Bank Reconciliation process.