Reconciliation of credit card movements, how to do it?

Reconciliation of credit card movements, how to do it?

Automatically reconcile the operations of your company’s credit cards, saving time, avoiding errors and problems.

Not only the usual bank movements must be adjusted in accounting. Companies must also control the operations they carry out with their credit cards, which are, after all, an expense that must be reflected in the accounting entries, even if the actual disbursement occurs at the end of the month or in other periods.

In this sense, many companies do not have solutions for the reconciliation of credit card movements because they work with cards from multiple banks and they do not have a single automated reconciliation system to process all of them.

In this article we will show you how you can make the reconciliation of credit card movements, an accounting management that is basic for the effective control of spending and absolute transparency with the data.

How to reconcile credit card movements

The way to reconcile data in your company can be variable. There are those who have a system to make it automatic between the statements of their bank account and those of their accounting management software. This allows them to have the accounting always up to date.

However, companies are complex in managing their costs and payment methods. In addition to receiving and sending money by PayPal, checks and other means, they most likely regularly use credit cards.

When you carry out a purchase operation, that money must be reflected as an expense on the same day that the operation occurs, though later you may pay that amount in installments, and the interest to the bank. Furthermore, at the treasury management level it is useful to know that you do not have to pay that amount of money at the time of purchase, but for the purposes of accounting management, it should be reflected.

It is true that you will have the money in the account for a longer time, but the purchase operation and the payment obligation have already occurred.

Automatic Credit Card Reconciliation

Companies use various processes to reconcile their credit card data. The manual system is the traditional way of doing it and consists of manually downloading the statements of each operation with all the credit cards, dumping it into an Excel file with its corresponding date, and making the reconciliation between this data and the invoices that have been issued through a credit card.

This method can cause a lot of problems. The first one is, without a doubt, the time that this process takes. Having to download the data of the operations of all the credit cards of the company is usually very complex and tedious. Inadvertent errors can occur (the product of any manual task), and it should be noted that your Accounting Department would be less productive and efficient by having to do these tasks manually.

The most convenient solution for data reconciliation of credit card movements is undoubtedly automated reconciliation.

Tools such as Conciliac make this task easier for you, since they allow you to check exactly the operations and associate them with the invoices you have.

If there are differences between the data, you will be able to know it automatically in minutes and check the error.

If you want to know more about how to reconcile credit cards and your accounting data, write to us now and we will contact you to tell you in more detail.