How to simplify and automate recurring bank transfers in NetSuite

Key takeaways:

• Recurring bank transfers like intercompany transactions are a routine part of financial management. But manual processes can lead to inefficient operations.

• Cash management automation solutions can handle routine tasks consistently, processing transactions accurately and on time.

• NetSuite embedded solutions like NetCash can automate the process, removing manual processes and gaining efficiency.  

Managing recurring bank transfers like intercompany and intracompany transactions is a crucial part of financial operations for many organizations.

However, the financial recording of these transfers can be unnecessarily complex, time-consuming, and prone to errors, leading to inefficiencies and potential financial discrepancies.  

But with the right software solutions that simplify and automate recurring transactions, businesses can achieve greater accuracy, save time, and reduce the risk of errors.  

In this post, we'll explore the common challenges of manual transfers, the benefits of automating the process, and how to leverage NetSuite-embedded solutions to simplify recurring transfers.

Challenges of recurring bank transactions

Recurring bank transfers like intercompany transactions are a routine part of financial management. But even though they’re common for most businesses, accounting for these transactions can present challenges that lead to inefficient operations.

Some of the most common challenges accountants face when recording recurring bank transfers include:

• Discrepancies: Incorrect data entry, mismatched transaction records, and timing differences between when transactions are recorded and when they occur can all lead to discrepancies. These discrepancies can create a cascade of issues, complicating reconciliation and reporting and potentially impacting financial statements.

• Delays: Timeliness is critical in financial transactions, but manual processing, approval bottlenecks, or incomplete documentation can cause delays. These delays not only disrupt the cash flow but can also strain relationships with vendors, customers, and financial institutions.  

• Manual errors: Human error is an inevitable risk in any manual process. When it comes to bank transfers, errors can occur at multiple stages, from data entry to authorization and reconciliation. These mistakes can result in incorrect payments, duplicate transactions, or missing records, all of which require time-consuming corrections and can have financial consequences.

Automation software offers a solution to these challenges by streamlining processes and reducing manual intervention. Let’s explore how.  

Benefits of automating bank transfers

Cash management automation solutions can handle routine tasks consistently, processing and accounting for transactions accurately and on time. This not only reduces the likelihood of errors but also frees up time for finance teams to focus on more strategic activities.  

Here are some of the key benefits of automating the recurring bank transfer process:

• Improved accuracy: Automation significantly reduces the risk of human error associated with manual processes. That’s because automated systems can handle large amounts of data with precision, ensuring that all transactions are processed and recorded correctly. This accuracy is critical for maintaining reliable financial records, facilitating audits, and ensuring compliance with regulatory requirements.

• Reduced processing time: Recording manual bank transfers can be time-consuming, requiring manual data entry, approvals, and reconciliation. Automation speeds up these processes. Once you schedule your transfers, the system accounts for them automatically, reducing the time your team spends reducing the time your team spends on manual tasks.

• Enhanced security: Automation can enhance security by reducing the manual handling of sensitive financial information. Automated systems can incorporate encryption, access controls, and audit trails, ensuring that transactions are conducted securely. This not only protects the organization’s financial data but also builds trust with clients and partners.

Automating recurring bank transfers in NetSuite

Most enterprise resource planning (ERP) platforms don’t have out-of-the-box functionality to automate recurring bank transfers.  

However, one of the great benefits of NetSuite is its customizability, allowing you to add the functionality you need through embedded apps and integrations.  

Thanks to native apps and accounting software, you can build the exact NetSuite instance you need for your business operations. For example, NetCash—a NetSuite-native cash management and bank reconciliation solution—allows businesses to automate bank transfers without leaving their ERP.  

This means that if you have daily transfers like intercompany transactions, you can automate the process inside of NetSuite, removing manual processes and gaining efficiency.

How to automate bank transfers with NetCash

Automating your recurring bank transfers with NetCash requires a single step: setting up an automation rule within the software.  

Once you indicate which accounts the money will flow between, NetCash uses auto-matching to make sure that the currencies, amounts, and dates all match up. You can also indicate that the transfers should include a certain memo to ensure that transfers aren’t booked erroneously.

NetCash will then look for any transactions that match as transfers and book the entries—whether they’re intercompany or intracompany. This takes the entire process off your accounting team’s plate, giving them back valuable time to focus on strategic work.  

Take a look at how NetCash works below.  

Simplify your cash management processes with NetCash

Simplifying bank transfers with automation software can make your organization's financial processes more efficient and accurate. NetCash enables accounting teams to streamline transactions, reduce manual efforts, and ensure consistent data management across all entities.  

Using open banking, NetCash manages bank reconciliation seamlessly, offering:  

• A unified and accurate view of your cash position within connected banks, all within NetSuite

• Tools to create transactions, connect bank activity to general ledger activity, and automate recurring transactions or transfers

• Straightforward, audit-ready reports, like proof of cash and ending balance reconciliation

Ready to learn more about how NetCash simplifies cash management? Reach out to our team to request a personalized demo.