Pay via a daily clearing account that’s safe, secure and compliant

An integrated daily clearing account to pay your vendors, while taking advantage of automatic reconciliation with your ERP. Funds are safeguarded in tier 1 Indian banks for the day.
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Safe and secure. Compliant with RBI guidelines & IndAS
Talk to Sales
Safe and secure. Compliant with RBI guidelines & IndAS
Trusted by more than 3000 companies
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The Problem Today

Companies use multiple bank accounts & reconciliation is painful

Funds are moved into and out of multiple company bank accounts to make a single payment. Reconciling bank account statements with your ERP is a manual and time consuming process.

Compliance is ignored

Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.

No central database

Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.

Unreliable OCR systems

Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
The Problem Today

AP teams spend 100s of hours booking invoices

This is not only a waste of time and productivity, but many a times the invoice booking process has compliance loopholes, uses outdated technology and there is no central storage system for audit readiness and future reference.

Compliance is ignored

Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.

No central database

Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.

Unreliable OCR systems

Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.

Juggling of funds

Funds are kept in Account A of Bank B. But payment to the vendor needs to be made from Bank C.

Banks don’t talk to your ERP

Some banks have H2H integrations. They’re complex, time consuming to set up. Further, each account needs its own integration.

Reconciling is a pain

Reconciling bank statements with your ERP is a manual, time consuming and error prone task.

A safe, secure and compliant clearing account built for large Indian enterprises

Multi-bank Support

Stop juggling funds around to make a single vendor payment

Fund the clearing account with any of your company’s bank account. Supports all Indian banks in a safe and compliant manner.
Safety & Security Built In

Your funds are safe and secure at all times, fully compliant with RBI guidelines and IndAS

Payments are cleared instantly. In the odd chance of payment failure, funds are reversed to your original account by end of day.
CashFlo is processing 1000s of crores in payments each year, for India’s biggest corporates across all their bank accounts
Tier 1 Banks

A strong basis for the clearing account is everything. So funds are always safe

The clearing account is housed in Tier 1 Indian banks, providing unparalleled compliance and safety at all times.
Funds Safeguarded in Tier 1 Indian banks for a day
ERP & WMS Sync

Powerful ERP & WMS Sync for all your payments. Works with all ERPs.

Instantly sync every single payment with SAP, SAP B1, Ohana, Oracle, MS Dynamic and many more ERPs.
Unlock the potential of your finance team & boost productivity 10x. Let us show you how.
Book a free demo
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What is a Clearing Account? Importance of clearing accounts?

A clearing account, commonly used in accounting, serves as a temporary holding place for transactions that are still in the process of being settled. These accounts are crucial for ensuring accuracy in financial records by allowing transactions to be reviewed before being finalized. For example, in banking, a clearing account temporarily holds payments until they are cleared. The clearing account reconciliation process involves matching the account's balance with the transactions to ensure there are no discrepancies. Setting up a clearing account typically requires specific journal entries and is often used by small businesses for efficient financial reconciliation.

When should you implement a clearing account?

1. Managing Complex Transactions: Use a clearing account to temporarily hold funds during multi-step or multi-party transactions, ensuring accuracy before final allocation.

2. Handling Timing Differences: Implement when there's a delay between transaction initiation and completion, such as in payment processing or banking settlements.

3. Simplifying High-Volume Processing: Ideal for businesses with numerous transactions, like retail, to streamline reconciliation before posting to the general ledger.

4. Intercompany and Payroll Transactions: Useful for managing intercompany dealings or temporarily holding payroll funds until disbursement.
Benefits of Clearing Account 
Improved Accuracy in Financial Records

Clearing accounts reduce errors by holding transactions until they can be accurately matched and recorded, ensuring precise and reliable accounting.

Streamlined Reconciliation Process

These accounts simplify reconciliation by centralizing transactions in transit, making it easier to identify discrepancies and ensuring all are properly accounted for before closing the books.

Efficient Management of High-Volume Transactions

Clearing accounts help businesses efficiently manage large transaction volumes by temporarily holding and organizing them, reducing delays and errors in financial reporting.

Common Challenges with Clearing Accounts

1. Misclassifications: Transactions may be incorrectly allocated to the wrong accounts, leading to discrepancies in financial records that can be difficult to identify and correct.

2. Timing Issues: Delays in processing or recording transactions can result in timing differences, causing temporary mismatches between the clearing account and other related accounts.

3. Uncleared Transactions: Transactions that remain in the clearing account for extended periods can indicate unresolved issues, such as missing documentation or incorrect entries, complicating reconciliation.

4. Duplicate Entries: Duplicate transactions in the clearing account can occur due to processing errors, leading to overstated balances and inaccurate financial reporting.

5. Lack of Regular Reconciliation: Infrequent reconciliation of clearing accounts can allow errors to accumulate, making it harder to identify and correct issues promptly.

Tips for Avoiding and Correcting Clearing Account Mistakes

1. Implement Clear Classification Guidelines: Establish detailed guidelines for classifying transactions to ensure they are consistently and accurately recorded, reducing the risk of misclassifications.

2. Regularly Monitor and Reconcile Accounts: Conduct frequent reconciliations to catch and correct timing issues, uncleared transactions, and discrepancies before they escalate.

3. Automate Transaction Processing: Utilize accounting software to automate transaction matching and recording, which helps minimize manual errors like duplicate entries and misclassifications.

4. Ensure Proper Documentation: Maintain thorough documentation for all transactions to facilitate quick identification and resolution of any issues, ensuring transactions are cleared promptly.

How Does a Clearing Account Work?

A clearing account is a temporary account used to hold transactions until they can be properly allocated to their final accounts. In accounting, the process begins by recording transactions into the clearing account with a journal entry. These transactions are later reviewed and transferred to the appropriate accounts, ensuring the clearing account balance is zero at the end of the period. For example, in banking, a clearing account might temporarily hold a payment until it clears. Regular reconciliation is essential to match transactions and prevent errors, making clearing accounts vital for accurate financial reconciliation and account settlement.
Frequently Asked Questions
What types of transactions are typically recorded in a clearing account?
Why are clearing accounts important in finance?
How can clearing account mistakes be avoided and corrected?
How often should clearing accounts be reconciled?
What are the key steps in the clearing account reconciliation process?
How can technology assist in managing clearing accounts?
What are the best practices for setting up a clearing account?

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