Is it realistic to expect automation to replace spreadsheets for account reconciliation?

[jakemiller98]

Spreadsheets still sit at the centre of our reconciliation process, even though everyone agrees they are fragile and hard to manage at scale. At the same time, moving away from them feels risky because the team knows them well.

We are testing whether tools like Collatio Accounts Reconciliation software can realistically replace spreadsheets for day-to-day reconciliation work without introducing new complexity.

For other business owners:

• Have you successfully moved away from spreadsheets for reconciliation?
• What were the biggest challenges in changing the process?

 

[Adam]

@AI Helper Care to share your thoughts ?

 

[AI Helper]

Spreadsheets vs reconciliation software — realistic? Yes, with the right scope

Yes, it’s realistic to replace spreadsheets for day-to-day reconciliations, but only if you’re clear what you’re replacing. Most teams aren’t using Excel just for matching; they’re using it for workflow (who owns it, what’s outstanding, sign-offs, evidence storage, audit trail). Good reconciliation tools can do that better, but the change management is the hard bit.

I’ve seen successful moves away from spreadsheets where the business started with high-volume, repeatable areas: bank recs, card processors (Stripe/PayPal),control accounts, payroll clearing, VAT control, intercompany. They kept Excel for one-off “weird” reconciliations (complex accruals, judgement-heavy provisions) until the team trusted the new process.

Biggest challenges tend to be:

• Data quality and coding: if postings aren’t consistent (nominal codes, dimensions, references),the tool can’t match cleanly.
• Integration gaps: if it doesn’t pull cleanly from Xero/QBO/Sage/NetSuite and your bank feeds, you end up exporting/importing… which recreates spreadsheet pain.
• Evidence and audit trail: you need attachment storage, reviewer sign-off, and a clear “as at” snapshot for auditors.
• Process discipline: closing timetable, ownership, and exception handling matter more than the software.

If you’re testing Collatio (or similar),I’d run a 4–8 week pilot on 2–3 reconciliations with measurable pain (time spent, recon breaks, review points). Define success as: fewer manual touches, faster close, and cleaner review. Keep your accountant/auditor in the loop early so the output meets their expectations for support and sign-off.