Orama’s automatic transaction reconciliation will save you hours of work in your day-to-day!
What is transaction reconciliation?
To keep your cash flow forecast up to date, you should remove from your forecasts the collections and payments that you have already paid or collected. This process is done through the reconciliation of bank transactions with their corresponding forecast.
For example, if you have a balance in your bank accounts of €5,000, and you expect to pay office rent of €1,000 at the end of this month, your forecast will indicate that you will end the month with a total bank balance of €4,000.
By the time you pay for the office, your bank balance will have dropped to €4,000, so you must reconcile this item in your forecasts, otherwise your forecast bank balance at the end of the month would be €3,000 as you still have the forecast rent payment of €1,000.
As you can see, by not doing a reconciliation, you expect to end the month with €3,000 in cash, which is wrong. However, when you reconcile you update your cash flow forecast by correctly forecasting to end the month with €4,000 of cash in banks.
Orama brings in your bank transactions up to 4 times a day (every 6 hours) and suggests which forecast to reconcile each one with. And with automatic reconciliation rules, you do not even have to review them.
Automatic transaction reconciliation in Orama
The reconciliation of new payments and receipts from the bank with your forecast item… is completely automatic! You set the rules for automatic reconciliation, and if they are met, the transaction will be applied directly to the corresponding forecast.
To edit the reconciliation rules, simply click on one of the line items, and in the slider on the right there will be a “Features” tab, where you will find the keywords assigned to that particular line item. Click on the small arrow and the reconciliation settings for that line item will open.
Here you will find the reconciliation rules, where you will have different concepts. Remember that the fields you leave blank will be disabled.
- Mandatory words: words that must appear in the bank transaction in order to be reconciled. If you enter more than one word, all of them must appear in the transaction description.
- Optional words: simply one of the words you indicate as optional will have to appear. If, for example, you enter the optional words “Google” and “LinkedIn”, the payments for both items will be reconciled to this line item.
- Rejected words: are excluding words, if the bank transaction contains any of the rejected words, it will not be reconciled with this item or forecast.
- Minimum or maximum amounts: in case you want to define maximum amount ranges in the transactions for that item or forecast.
- Bank category: quite useful for items such as payroll, taxes, or bank charges.
And finally…
- Automatic Reconciliation Check: if you activate automatic reconciliation, and a bank transaction meets the above parameters, it will be reconciled automatically, without asking! Remember that by default it is deactivated, but you can easily reconcile your new transactions in the Reconciliations section, where you will find reconciliation proposals so that you can quickly have your forecasts updated in just a few clicks.
Do you want to save hours and hours of time updating your cash budget?
Find out how in a 30-minute chat with one of our experts.
