Reconciliation Overview

Modern Treasury's Reconciliation Engine allows you to automate and scale your workflows by centralizing data and matching criteria into one easy-to-use interface.

Modern Treasury’s Reconciliation Engine helps you match transactions at your financial institution with your internal records. For example, automatically reconcile your bank statement to invoices to automate revenue recognition and update accounts receivable.

There are five components to the platform:

  • Ingestion: Import transaction and payments data from any bank or payment processor.
  • Enhancement: Normalize and prepare the raw data for reconciliation.
  • Automatic Reconciliation: Reconcile 1-to-1 or many-to-1, using pre-built or custom rules.
  • Exception Management: Detect and resolve exceptions with a collaborative finance ops tool.
  • Sync: Export results to ERPs, data warehouses, spreadsheets, or receive instantly as webhook events.

For payments sent using Modern Treasury, all Payment Orders will be automatically reconciled – which you can use to update your internal records.

For all other payments, including payments you receive, you will create Expected Payments to represent your internal records (e.g., invoices) to automatically reconcile it to your transactions.

Why is reconciliation important?

Reconciliation is the process of verifying cash transactions, and confirming that your internal records agree with your bank or payment processor. It’s also called bank reconciliation, cash reconciliation, or payment reconciliation.

Common use cases:

  • Product teams use it to report accurate balances or payment statuses in real-time.
  • Payment operations teams use it to identify payment discrepancies and errors.
  • Finance and accounting teams use it to close the books accurately and quickly.

Accurate and automated reconciliation helps businesses:

  • Deliver a better product experience
  • Reduce financial and operational risk
  • Scale and operate more efficiently
  • Make better decisions with better cash insights

Get in touch if you have any questions about the Reconciliation Engine.