Credit card reconciliation can be tricky to complete effectively. But is it due to a lack of man power, or holes in your process?
Some credit card reconciliation challenges can trip up even the most experienced of financial controllers, leading to time-consuming double-checking by peers.
But bringing multiple eyes to oversee data input and approval is not helpful if the initial data is incorrect. Because bad data begets bad data – rubbish in, rubbish out. Inconsistencies of incorrect data, missing information, and our old friend, human error, can all mess up an already complicated process.
Simplifying the process and automating wherever possible reduces the headcount required for handling credit card reconciliation, saving time, money and frustration.
What must good credit card data include?
Stricter input data demands and standardisation, will mean that anyone preparing and inputting the data can complete a much more reliable credit card reconciliation with few problems while keeping your processes consistent across the department and organisation. With an enhanced automated reconciliation solution you can even get the process complete with time to spare!
So, what data should be included and standardised in order to run successful credit card reconciliation?
- Control of incoming and outgoing balances, and differences for each month
- Reports on all open items
- How much the redeemer has outstanding
- Any fees that have been deducted by the redeemer
- Completed monthly account reports
Once all these bits of data have been located and standardised it should be far easier for your finance staff to match and reconcile items quickly and accurately. One way to ensure that all the data is present and in the right format is to write up strict guidance for all staff. This will help to eliminate inconsistencies and missing information, while minimising the chance for human error.
The perfect credit card reconciliation
Ideally you would be able to run a fast and accurate credit card reconciliation process without the prospect for human error. However, due to time constraints and the length of manual processes, finance departments are usually forced into a trade-off between accuracy and speed.
With enhanced reconciliation automation software, such as Adra Match’s BALANCER, you don’t need to make this trade-off. The automation software standardises all inputs, gathering all the information needed for a perfect credit card reconciliation and allowing you to:
- Save time
- Gain an overview, detect discrepancies
- Ensure that sales are settled and that settlement is received from the settlement partner
- Control of outstanding balances at end of month – reduce write-offs on claims against card companies
- Detect irregular entries – Is commission entered correctly? Is the location correct?
The software’s variance function allows the card net amount to be matched with gross amount in the ledger account for a fast and secure credit card reconciliation.
Download the Adra Match ‘Control Your Transaction Flow’ ebook for free, to receive more in-depth, helpful information and streamline your credit card reconciliation today.
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