The reconciliation process is an essential part of daily operations for hedge funds and other asset managers but too often it can be inefficient and inaccurate. Growth complicates the issue, as transactions become even more complex as funds expand. Specifically, as data volumes grow, the risk of errors rises.
The root of the issue is that reconciliations are typically done manually without standardized workflows, transparency, or accountability. Manual reconciliations also compromise your ability to react quickly and accurately when opportunities arise.
This problem comes to light in several ways. For example, it often becomes difficult for funds to complete month-end closing on time. Squeezed settlement cycles drive the need for real-time exception management, but current processes can’t deliver. Risk and compliance checklists from auditors are growing, but funds do not have real-time risk monitoring or exception tracking. In fact, a lack of analytics makes it very difficult to understand why breaks are happening.
There are many ways to make incremental improvements to the reconciliation process. But if funds want to achieve a true quantum leap in reconciliation efficiency, you need to consider investing in automated reconciliation with a cloud-based reconciliation solution.
Case in point: IVP Reconciliation Solution. This cloud-based reconciliation solution delivers the capabilities funds need to dramatically improve reconciliation workflow. Examples include:
- Process automation: The IVP Reconciliation Solution automates the entire reconciliation workflow, reducing manual effort and improving accuracy.
- Centralization: The solution provides a single, centralized platform for all reconciliation activities, making it easier to track progress and identify issues.
- Machine learning: AI/ML technologies empower the solution to reduce the risk of errors that occur commonly in manual processes, resulting in fewer financial losses.
- Month-end close: Automated reconciliation makes month-end closing more efficient and error-free. AI/ML technologies provide real-time error detection while automating data collection and other tasks.
- Efficiency: Automated reconciliation reduces the time and effort required to handle this critical work while also freeing up teams to spend time on more complex tasks. It also increases data accessibility, eliminating the need for manual data transfer.
- Accuracy: AI/ML technology rapidly identifies discrepancies in data so they can be resolved faster, while also significantly reducing the risk of human errors.
- Customization: The IVP Reconciliation Solution can generate custom break reports for regulators and investors as well as real-time reporting and scenario analysis.
- Integration: Our solution connects easily with downstream accounting software and ERP systems to ensure data stays consistent across all systems.
This is not a complete list of the solution’s capabilities.
Learn more about the IVP Reconciliation Solution right now or contact us at firstname.lastname@example.org to schedule a demo.
This reconciliation solution uses AI and ML to increase efficiency, accuracy, and flexibility. It features “any-to-any” reconciliations, including bank reconciliation, and processes millions of transactions in minutes.
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