Since 1981, U.S. financial institutions have offered bank account-access via phones. Since 1994, customers have been able to access their bank accounts over the internet. In 2004, a “new era in banking” began when a Congress passed an electronic check clearance legislation called Check 21. Partially prompted by the 9/11 attacks, when grounded flights held up the commerce system, it allowed for digital check images to be considered legal payment representation.
Today, online banking has mushroomed in popularity. Transferring funds, paying bills, and making deposits have become commonplace among mobile device and computer users.
For businesses, next-level financial service includes integrated banking. Integrated banking features significant accounting efficiencies, cutting down on time, stress, and wasted resources.
Despite this, integrated banking services may not come with your association accounting software. Software companies that do offer integrated banking may lack relevant features like banking reconciliation.
Why is Integrated Banking Important?
Without banking and accounting software integration, your team is likely to do accounting on internal software platforms and banking on a completely separate bank-specific platform.
This can be logistically vexing because your accountants must log in and out of different websites. They encounter further difficulties performing banking tasks like transferring funds between accounts, and reconciling bank statements with payments and receivables across multiple platforms. This can lead to unnecessary back and forth, tedious manual entries, and general inefficiencies.
Cloud-based software with integrated banking features bridges the gap between accounting and finance. This innovative solution saves your accountants time, preserves your company’s bottom line, and improves financial visibility. Give your association management business limitless scalability with integrated banking and accounting on one centralized platform.
Integrated Banking Features
Basic accounting software may have been sufficient when your company managed one or two associations. Now that your portfolio has expanded and continues to grow, you need software to keep up with your business.
Cloud-based accounting software with integrated banking significantly streamlines your operation through features including:
- Centralized banking and accounting — Centralized banking and accounting automatically imports bank account balances onto your accounting system platform.
- Simplified receivables — Homeowner payments can be deposited directly into appropriate accounts, while online payment portals further simplify this process.
- Automatic reconciliation — Automatic reconciliation and posted interest transactions give boards quicker access to their monthly reports at month’s end.
- Real-time transfers — Multi-site account management allows seamless real-time transfers across accounts.
- Lockbox services — Lockbox services incorporate a dedicated processing team that matches 99% of payments to homeowners.
- Fraud prevention — Integrated banking also includes positive pay fraud protection, which protects your company from loss or liability.
When it is time to consider an accounting software service with integrated banking, ensure it has strong bank relationships and incorporates daily reconciliation. Deep banking integration gives your business tremendous operational efficiency, reduces employee stress, and firmly places your company on a clear path to growth.