Site icon Conciliac EDM

Credit card reconciliation: Which companies should do it, why is it important and what are the common mistakes?

Corporate credit card reconciliation is essential to ensure accurate financial records, control expenses and maintain transparency in business operations. If you still think your company doesn’t have to do it, it’s time for you to read this blog post because here are the keys to reconciliation that will boost your business.

Table of Contents:

 

In other posts of this blog we have already addressed some answers about what is credit card reconciliation, how to work with multiple formats and how to carry out this type of reconciliation.

However, some companies believe that they do not require this process or that they can do it manually without any inconvenience, when the reality is that it is a sensitive procedure for the business that provides multiple benefits by automating it.

Do you want to recognize its true importance? Read on!

What you need to know about the importance of corporate credit card reconciliations

Corporate credit card reconciliation not only aims to balance financial transactions, but also to ensure the integrity of records, expense control and early detection of problems.

Taking a proactive approach to reconciliation contributes significantly to sound financial management and efficient business operations. Even if it seems like a routine task, this practice is very important for your business and here’s why:

In principle, credit card reconciliation ensures that financial records accurately reflect card transactions, which is essential for making informed financial decisions and complying with tax obligations.

In addition, by reconciling corporate credit cards, companies can maintain effective control of expenses, identifying spending patterns, areas for optimization and potential leakage of resources.

Regular reconciliation of credit card transactions helps to detect possible errors in charges as well as fraudulent activities. This, at the same time, promotes transparency in the company’s financial management.

Finally, the reconciliation of corporate credit cards makes it possible to optimize internal processes. Automation and the use of technological tools, such as the Conciliac EDM platform, make it possible to streamline reconciliation, reduce the manual workload and improve operational efficiency.

How do you know if your company has to reconcile corporate credit cards?

If your company uses corporate credit cards in its financial management, then you need to perform such a reconciliation. But we have also put together a guide for you to identify their relevance.

What types of companies have to do credit card reconciliation and why?

  • Companies with corporate expenses: That is, companies that use corporate credit cards for employee expenses, business travel and business-related purchases.
  • Multinational corporations: Who have operations in multiple geographic locations that require comprehensive tracking and control of credit card spending in different regions.
  • Service companies: Those that provide professional services or consulting and need to control expenses associated with projects and clients.
  • Companies with significant cash flows: They handle large volumes of financial transactions and require careful control of their records and expenses.
  • Regulated industries: Such as banking and healthcare, where accuracy and transparency in financial records must be ensured.
  • Growing companies: As companies grow, corporate credit card usage may also increase, making reconciliation crucial to maintaining financial integrity.

Five common mistakes to make when reconciling credit cards

One of the reasons why Conciliac promotes the automation of credit card reconciliations is because it eliminates unintentional human errors or possible fraud.

However, if you consider that you are careful and want to continue doing this procedure in the traditional way, these are the mistakes you can make:

  1. Double counting transactions: Double counting the same transaction is one of the most frequent unintentional errors that leads to discrepancies in non-scale balances. It is easy to lose track of small or repeated purchases..
  2. Omitting transactions: Not recording all transactions is another common error. Small expenses can go unnoticed and affect the accuracy of the reconciliation.
  3. Wrong date: Mixing up transaction dates can mismatch balances and make it difficult to track expenses.
  4. Ignorance of charges and fees: Overlooking hidden charges, interest rates or annual fees can negatively affect reconciliation calculations.
  5. Do not consider outstanding payments: This can lead to a mismatch in balances and generate unnecessary worries.

It is clear that people who make these common mistakes are not considering a fundamental option to avoid them and make this process simpler and more efficient, thus allowing for much more optimal decision making.

How? Through technological tools that enable the automation of the end-to-end process. Learn how Conciliac EDM does it, the multifunction platform that also has the support of American Express as a partner.

How to do credit card reconciliation in an automated way?

The Conciliac EDM platform performs credit card reconciliation efficiently and accurately, streamlining the process for companies of various sizes. Here we explain how it performs this essential task:

Conciliac EDM uses advanced machine learning (ML) algorithms to automate the reconciliation of credit card transactions. These algorithms are capable of analyzing large volumes of data and automatically detecting discrepancies between internal records and account statements.

The platform extracts data from multiple sources, including bank statements and internal company records. This information is efficiently integrated into the system, enabling detailed analysis.

At the same time, it compares the extracted data with the company’s internal records, identifying matches and discrepancies. This ensures accurate reconciliation and avoids common errors by identifying mistakes such as duplicate transactions or missing records. This helps maintain data integrity and avoids discrepancies in balances.

Once the reconciliation is completed, Conciliac EDM generates detailed reports showing the reconciliation status, matching transactions and any discrepancies found. These reports provide a clear view of the financial situation.

Additionally, it allows constant monitoring of transactions and statements, which facilitates early detection of problems and informed decision making. The platform guarantees the security of confidential data since, being on-premises, sensitive information does not leave each company’s own infrastructure.

Specifically, Conciliac EDM employs cutting-edge technology such as machine learning and robotic process automation to perform corporate credit card reconciliation effectively, identifying discrepancies and errors to maintain accurate and reliable financial management.

Do you want to know this proposal in depth? Do not hesitate and request a demo now.

Exit mobile version